304.39-290 Kentucky Insurance Arbitration Association -- Creation -- Membership
-- Powers -- Duties.
(1)
(2)
(3)
(4)
(5)
There is created a nonprofit unincorporated legal entity to be known as the
Kentucky Insurance Arbitration Association to provide a mechanism for the
reimbursement, among reparation obligors of losses paid as basic or added
reparation benefits, based solely on the law of torts without regard to subsections
(1), (2), and (3) of KRS 304.39-060.
All basic reparation obligors shall be and remain members of the association as a
condition of their authority to transact business in this Commonwealth.
The association shall perform its functions under a plan of operation established and
approved under subsection (5) and shall exercise its powers through a board of
directors established under subsection (4) hereof.
The board of directors of the association shall consist of not less than five (5) nor
more than ten (10) persons serving terms as established in the plan of operation.
They shall be selected by member obligors subject to the approval of the
commissioner. If no members have been selected and approved prior to July 1,
1974, the commissioner shall appoint the initial members of the board. In approving
selections to the board, the commissioner shall consider, among other things,
whether all member obligors are fairly represented.
Each member of the board shall designate qualified experienced claimspersons from
the member's company, who upon approval by the commissioner, may serve as his
or her alternates for the purpose of claims arbitration.
The association shall submit to the commissioner a plan of operation and any
amendments thereto necessary, or suitable to assure the fair, reasonable, and
equitable administration of the association. The plan shall become effective upon
approval in writing by the commissioner:
(a) All reparation obligors shall comply with the provisions of the plan of
operation;
(b) The plan of operation shall:
1.
Establish procedures whereby all the powers and duties of the
association will be performed;
2.
Establish minimum requirements for the initial submission of a case for
reimbursement or arbitration;
3.
Establish minimum requirements beneath which reimbursements shall
not be made in order that there be fair allocation of significant losses and
the elimination of unnecessary costs in the reimbursement mechanism;
4.
Encourage voluntary reimbursement procedures between reparation
obligors so that resort to arbitration shall be as infrequent as possible;
5.
Recognize that fair allocation of loss between commercial and
noncommercial motor vehicles may require different minimum
requirements than when the loss is between two (2) or more
noncommercial vehicles;
6.
7.
(6)
(7)
(8)
Establish regular places and times for meetings;
Establish procedures for records to be maintained on all cases presented
for arbitration and dispositions thereof;
8.
Establish procedures for compensation to reparation obligors for travel
related expense and the fair value of the time devoted by their employees
as a director or alternate in performance of duties for the association;
9.
Establish procedures for adequately and equitably financing the cost of
the association among members; and
10. Contain additional provisions necessary or proper for execution of the
powers and duties of the association.
The association shall be subject to examination and regulation by the commissioner:
(a) The board of directors shall submit to the commissioner, not later than March
30 of each year, a report on its activities for the preceding calendar year;
(b) The board of directors shall promptly notify the commissioner whenever it
appears that any member insurer has failed or refused to comply with an
arbitration decision or has shown a protracted tendency to decline a significant
number of meritorious claims presented to it prior to initiation of arbitration
proceedings.
The association shall be exempt from payment of all fees, licenses, and taxes levied
by this Commonwealth or any of its subdivisions except taxes on real or personal
property.
There shall be no liability on the part of and no cause of action of any nature shall
arise against any member insurer, the association or its agents or employees, the
board of directors, or the commissioner or his or her representative for any action
taken by them in the performance of their powers and duties under this section.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1531, effective July 15, 2010. -Amended 1996 Ky. Acts ch. 326, sec. 2, effective July 15, 1996. -- Created 1974 Ky.
Acts ch. 385, sec. 29, effective July 1, 1975.
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