304.39-080 Security covering motor vehicle.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
"Security covering the vehicle" is the insurance or other security so provided. The
vehicle for which the security is so provided is the "secured vehicle."
"Basic reparation insurance" includes a contract, self-insurance, or other legal
means under which the obligation to pay basic reparation benefits arises.
This Commonwealth, its political subdivisions, municipal corporations, and public
agencies may continuously provide, pursuant to subsection (6) of this section,
security for the payment of basic reparation benefits in accordance with this subtitle
for injury arising from maintenance or use of motor vehicles owned by those
entities and operated with their permission.
The United States and its public agencies and any other state, its political
subdivisions, municipal corporation, and public agencies may provide, pursuant to
subsection (6) of this section, security for the payment of basic reparation benefits
in accordance with this subtitle for injury arising from maintenance or use of motor
vehicles owned by those entities and operated with their permission.
Except for entities described in subsections (3) and (4) of this section, every owner
or operator of a motor vehicle registered in this Commonwealth or operated in this
Commonwealth with an owner's permission shall continuously provide with respect
to the motor vehicle while it is either present or registered in this Commonwealth,
and any other person may provide with respect to any motor vehicle, by a contract
of insurance or by qualifying as a self-insurer, security for the payment of basic
reparation benefits in accordance with this subtitle and security for payment of tort
liabilities, arising from maintenance or use of the motor vehicle. The owner of a
motor vehicle who fails to maintain security on a motor vehicle in accordance with
this subsection shall have his or her motor vehicle registration revoked in
accordance with KRS 186A.040 and shall be subject to the penalties in KRS
304.99-060. An owner who permits another person to operate a motor vehicle
without security on the motor vehicle as required by this subtitle shall be subject to
the penalties in KRS 304.99-060.
Security may be provided by a contract of insurance or by qualifying as a selfinsurer or obligated government in compliance with this subtitle.
Self-insurance, subject to approval of the commissioner of insurance, is effected by
filing with the commissioner in satisfactory form:
(a) A continuing undertaking by the owner or other appropriate person to pay tort
liabilities or basic reparation benefits, or both, and to perform all other
obligations imposed by this subtitle;
(b) Evidence that appropriate provision exists for prompt and efficient
administration of all claims, benefits, and obligations provided by this
subtitle; and
(c) Evidence that reliable financial arrangements, deposits, or commitments exist
providing assurance, substantially equivalent to that afforded by a policy of
insurance, complying with this subtitle, for payment of tort liabilities, basic
reparation benefits, and all other obligations imposed by this subtitle.
(8)
(9)
An entity described in subsection (3) or (4) of this section may provide security by
lawfully obligating itself to pay basic reparation benefits in accordance with this
subtitle.
A person providing security pursuant to subsection (7) of this section is a "selfinsurer." An entity described in subsection (3) or (4) of this section that has
provided security pursuant to subsection (6) of this section is an "obligated
government."
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1526, effective July 15, 2010. -Amended 2007 Ky. Acts ch. 38, sec. 1, effective June 26, 2007. -- Amended 2005
Ky. Acts ch. 152, sec. 1, effective June 20, 2005. -- Amended 1998 Ky. Acts ch. 442,
sec. 3, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 341, sec. 6, effective
July 15, 1996. -- Created 1974 Ky. Acts ch. 385, sec. 8, effective July 1, 1975.
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