2013 Kentucky Revised Statutes CHAPTER 164 - STATE UNIVERSITIES AND COLLEGES -- REGIONAL EDUCATION -- ARCHAEOLOGY 164.941 Basic coverage compensation fund -- Management and use -- Settlement of claims -- Contributions to funds.
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164.941 Basic coverage compensation fund -- Management and use -Settlement of claims -- Contributions to funds.
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The board of trustees of the university may, at its election, establish a basic
coverage compensation fund for the benefit and protection from liability of itself
and its agents. Promptly after the board of trustees of said university has
elected to establish a basic coverage compensation fund, the university shall
pay to the State Treasurer the sum of three hundred fifty thousand dollars
($350,000).
Upon receipt of said payment of three hundred fifty thousand dollars
($350,000) the State Treasurer shall create a separate account to be
designated as the "Basic Coverage Compensation Fund, University of
Kentucky" and there shall be credited to said fund the initial payment of three
hundred fifty thousand dollars ($350,000), all income thereafter earned from
the investment of said fund, and all contributions thereafter made by the
university. Unexpended and unencumbered balances in any fund created
hereunder shall be carried forward and be available for expenditure in
succeeding fiscal years notwithstanding the provisions of KRS 45.229 or any
other provision of the Kentucky Revised Statutes. No portion of said fund shall
ever lapse to the general fund and income earned from the investment of funds
standing to the credit of said account shall accrue and be credited thereto,
notwithstanding the provisions of KRS 42.500 or any other provision of the
Kentucky Revised Statutes. Upon termination of said fund for any reason, the
balance therein shall revert to the university.
The funds held in any fund created under KRS 164.939 to 164.944 shall be
expended solely in payment of claims for liability arising in favor of any patient
from treatment performed or furnished, or treatment that should have been
performed or furnished by the university or its agents. The liabilities which said
fund shall be created to discharge are all liabilities from acts or omissions to act
which may have occurred since July 1, 1975 and which may occur in the future
which no entity other than the university and its agents is or will be obligated
either by law or contract to pay and discharge.
No settlement shall be made of any claim for personal injury or death to any
claimant arising out of the furnishing or failure to furnish medical care by the
university and its agents, until and unless the board of trustees of the
university, or its duly delegated agent or body has first approved of such
settlement. The board of trustees of the university shall also have the right to
determine whether or not an appeal shall be taken from any judgment rendered
against it or its agents, when such claim is founded upon or arises out of the
furnishing or failure to furnish medical care. Provided, however, that if the
payment of a judgment would involve expenditures from appropriations of
general funds of the Commonwealth under the provisions of subsection (8) of
this section then any payment from said fund must also be approved by the
secretary, or his delegate.
Funds held in an account created hereunder may be disbursed by the
secretary only upon the written certification of the university, or its duly
designated agent, of the amount to be disbursed and the name of the person
or persons to whom such funds shall be paid.
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Annual contributions to said fund shall be made by the university in an amount
which will be not less than one hundred fifty percent (150%) of the average
amounts actually paid in each year on medical malpractice claims for the five
(5) years next preceding the making of the annual contribution. In the event the
university terminates its commercial excess insurance coverage then said
annual contributions shall be in the amount of two hundred fifty thousand
dollars ($250,000) with the first contribution being due and payable within
twelve (12) months next following the month in which such insurance is
terminated. Provided, however, that if the university and the secretary shall at
any time in the future, based upon accepted actuarial principles, mutually
determine that an annual contribution in a lesser amount will not impair the
adequacy of the fund to satisfy existing and potential health care malpractice
claims for a period of one year, then an annual contribution in such lesser
amount as may be determined may be made.
The university shall be solely responsible for the investigation and servicing of
all claims made against it arising out of medical malpractice and all costs,
expenses and fees incurred in the investigation, servicing and defense of all
such claims shall be borne and paid by the university.
Claims or judgments certified to be paid by the university shall be paid in the
order received by the secretary. If the basic coverage compensation fund
created hereunder shall at any time fail to have sufficient funds to pay all
judgments, then they shall be paid out of the excess coverage fund upon
certification of the obligation by the secretary and the university. Said excess
fund shall be expended only upon exhaustion of the basic coverage
compensation fund and any insurance from any source whatsoever.
Effective:July 1, 1983
History: Amended 1982 Ky. Acts ch. 382, sec. 27, effective July 15, 1982; and
ch. 450, sec. 72, effective July 1, 1983. -- Amended 1978 Ky. Acts ch. 394,
sec. 2, effective June 17, 1978. -- Created 1976 Ky. Acts ch. 348, sec. 3.
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