There is a newer version of the Kentucky Revised Statutes
2011 Kentucky Revised Statutes
Subtitle 20. Casualty Insurance Contracts
304.20.020 Uninsured vehicle coverage -- Insolvency of insurer.
Download pdf304.20-020 Uninsured vehicle coverage -- Insolvency of insurer.
No automobile liability or motor vehicle liability policy of insurance insuring
against loss resulting from liability imposed by law for bodily injury or death
suffered by any person arising out of the ownership, maintenance or use of a motor
vehicle shall be delivered or issued for delivery in this state with respect to any
motor vehicle registered or principally garaged in this state unless coverage is
provided therein or supplemental thereto, in limits for bodily injury or death set
forth in KRS 304.39-110 under provisions approved by the commissioner, for the
protection of persons insured thereunder who are legally entitled to recover
damages from owners or operators of uninsured motor vehicles because of bodily
injury, sickness or disease, including death, resulting therefrom; provided that the
named insured shall have the right to reject in writing such coverage; and provided
further that, unless the named insured requests such coverage in writing, such
coverage need not be provided in or supplemental to a renewal policy where the
named insured had rejected the coverage in connection with a policy previously
issued to him or her by the same insurer.
For the purpose of this coverage the term "uninsured motor vehicle" shall, subject to
the terms and conditions of such coverage, be deemed to include an insured motor
vehicle where the liability insurer thereof is unable to make payment with respect to
the legal liability of its insured within the limits specified therein because of
insolvency; an insured motor vehicle with respect to which the amounts provided,
under the bodily injury liability bond or insurance policy applicable at the time of
the accident with respect to any person or organization legally responsible for the
use of such motor vehicle, are less than the limits described in KRS 304.39-110;
and an insured motor vehicle to the extent that the amounts provided in the liability
coverage applicable at the time of the accident is denied by the insurer writing the
Protection against an insurer's insolvency shall be applicable only to accidents
occurring during a policy period in which its insured's uninsured motorist coverage
is in effect where the liability insurer of the tortfeasor becomes insolvent within one
(1) year after such an accident. Nothing herein contained shall be construed to
prevent any insurer from affording insolvency protection under terms and
conditions more favorable to its insureds than is provided hereunder.
In the event of payment to any person under the coverage required by this section
and subject to the terms and conditions of such coverage, the insurer making such
payment shall, to the extent thereof, be entitled to the proceeds of any settlement or
judgment resulting from the exercise of any rights of recovery of such person
against any person or organization legally responsible for the bodily injury for
which such payment is made, including the proceeds recoverable from the assets of
the insolvent insurer.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1307, effective July 15, 2010. -Amended 1978 Ky. Acts ch. 384, sec. 105, effective June 17, 1978. -- Created 1970
Ky. Acts ch. 301, subtit. 20, sec. 2, effective June 18, 1970.
KY Rev Stat § 304.20.020 (1996 through Reg Sess) What's This?
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