2011 Kentucky Revised Statutes Subtitle 48. Liability Self-Insurance Groups 304.48.250 Assessment of members when assets insufficient or when deficiency in fund year -- Determination of insolvency -- Delinquency proceedings.
KY Rev Stat § 304.48.250 (1996 through Reg Sess) What's This?
304.48-250 Assessment of members when assets insufficient or when deficiency in
fund year -- Determination of insolvency -- Delinquency proceedings.
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If the assets of a liability insurance group are at any time insufficient to enable the
group to discharge its legal liabilities, other obligations, and to maintain the
required reserves under this subtitle, the group shall immediately levy an assessment
upon its members for the amount necessary to make up the deficiency.
If there is a deficiency in any fund year, the deficiency shall be made up
immediately, from the following:
(a) Surplus from a fund year other than the current fund year after prior notice of
the transfer has been given to the commissioner;
(b) Administrative funds;
(c) Assessment of membership; or
(d) Alternate methods as the commissioner may direct or approve.
If a liability self-insurance group fails to assess its members within thirty (30) days
to make up a deficit, the commissioner shall order it to do so. This subsection shall
not apply to liability self-insurance groups formed by governmental entities which
do not have joint and several liability.
If a liability self-insurance group fails to make the required assessment of its
members within thirty (30) days after the commissioner orders it to do so, or if the
deficiency is not fully made up within sixty (60) days after the date on which the
assessment is made, or within a longer period of time as may be permitted by the
commissioner, the group shall be determined to be insolvent and may be placed in
delinquency proceedings as an insurer pursuant to Subtitle 33 of this chapter.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1604, effective July 15, 2010; and ch. 48,
sec. 7, effective July 15, 2010. -- Created 1994 Ky. Acts ch. 358, sec. 25, effective
July 15, 1994.
Legislative Research Commission Note (7/15/2010). This section was amended by
2010 Ky. Acts chs. 24 and 48, which do not appear to be in conflict and have been
codified together.
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