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304.50-110 Statement of financial condition -- Contents.
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In addition to reports required under KRS 304.50-060, each workers
compensation self-insured group shall file with the commissioner an annual
statement of financial condition audited by an independent certified public
accountant on or before one hundred and twenty (120) days from the end of
the group's fiscal year for the immediately preceding fiscal year. The annual
financial statement shall be on a form approved by the commissioner and in
accordance with generally accepted accounting principles.
The annual financial statement shall include actuarially appropriate reserves
for:
(a) Known claims and expenses related to such claims;
(b) Claims incurred but not reported and any expenses associated such
claims; and
(c) Unearned premiums, contributions, and assessments.
The annual financial statement shall also include an actuarial opinion by a
qualified actuary and a supporting reserve study regarding reserves for known
claims and expenses associated with such claims. The reserve study shall
include documentation sufficient for another actuary practicing in the same field
to evaluate the work. The documentation shall describe clearly the sources of
data, material assumptions, and methods.
The following statements shall be included with the annual financial statement:
(a) Balance sheet;
(b) Statement of gain or loss from operations;
(c) Statement of changes in financial position; and
(d) Notes to financial statements required by generally accepted accounting
principles, which shall include a narrative explanation of all material
transactions and balances of the self-insured group.
No person shall make a deceptive statement or fail to correct a misstatement in
connection with the solicitation of membership of a self-insured group.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1640, effective July 15, 2010. -Created 2005 Ky. Acts ch. 7, sec. 22, effective March 1, 2005.
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