2013 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 50 - Workers' Compensation Self-Insured Groups 50.50-085 Operation of group by board of trustees -- Powers and duties -- Prohibited acts -- Power to contract, sue, and be sued -- Contracts for administration of group.
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304.50-085 Operation of group by board of trustees -- Powers and duties -Prohibited acts -- Power to contract, sue, and be sued -- Contracts for
administration of group.
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Each self-insured group shall be operated by a board of trustees. Except for a
self-insured group formed by governmental entities, the board of trustees for
each self-insured group shall consist of at least two (2) but not more than
twenty (20) persons selected in the manner prescribed in the bylaws of the
self-insured group or other laws of the Commonwealth.
The board of trustees shall:
(a) Be residents of Kentucky or officers of corporations authorized to do
business in Kentucky;
(b) Administer the operations of the workers' compensation self-insured
group ensuring that there is adequate funding to pay compensation
required by KRS Chapter 342, that all claims are paid promptly and
processed to conclusion, and that all necessary precautions are taken to
safeguard the assets of the group;
(c) Maintain responsibility for all moneys collected or disbursed from the
group;
(d) Maintain minutes of its meetings and make the minutes available to the
commissioner and group members;
(e) Designate an administrator to carry out the policies established by the
board of trustees and to provide day-to-day management of the
self-insured group;
(f) Develop rates and collect premium and assessments; and
(g) Invest the self-insured group's funds.
The board of trustees shall not:
(a) Extend credit to individual group members for payment of premiums or
assessments, except in accordance with payment plans filed with the
commissioner;
(b) Permit the loan of any moneys to or borrow any moneys from the
self-insured group or in the name of the group, except that a workers'
compensation self-insured group formed by governmental entities may
borrow moneys in the name of the group; or
(c) Have a direct or indirect pecuniary interest in a service organization.
A workers' compensation heterogeneous self-insured group may contract and
may sue and be sued in the name adopted by the group.
(a) The trustees may contract with a service organization, an administrator,
or a fiscal agent to carry out the administration of the workers'
compensation self-insured group.
(b) A service organization and its employees and agents shall be duly
licensed to perform those functions for which a license is required under
Kentucky law.
(c) A revolving fund of not more than twenty percent (20%) of estimated
premiums may be established for use by a service organization for the
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payment of claims.
In its discretion, the workers' compensation self-insured group may refer to its
trustees as directors. If this is done, the provisions of this subtitle referring to
trustees shall be construed as referring to directors.
Effective:June 25, 2013
History: Amended 2013 Ky. Acts ch. 75, sec. 2, effective June 25, 2013. -Amended 2010 Ky. Acts ch. 24, sec. 1637, effective July 15, 2010. -- Created
2005 Ky. Acts ch. 7, sec. 17, effective March 1, 2005.
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