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304.13-151 Insurer participation in pools, joint underwriting, joint reinsurance
pools, and residual market mechanisms.
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Notwithstanding KRS 304.13-131(2)(a), insurers participating in joint
underwriting, joint reinsurance pools, or residual market mechanisms may, in
connection with such activity, cooperate with each other in the making of rates,
rating systems, policy forms, underwriting rules, surveys, inspections and
investigations, the furnishing of loss and expense statistics or other
information, or carrying on research. Joint underwriting, joint reinsurance pools,
and residual market mechanisms shall not be deemed advisory organizations.
Except to the extent modified by this section, insurers, joint underwriting, joint
reinsurance pool and residual market mechanism activities are subject to the
provisions of this chapter.
Every pool shall file with the commissioner a copy of its constitution, bylaws,
rules, and regulations governing its activities, and articles of incorporation,
agreement, or association. It shall also file with the commissioner a list of its
members and the name and address of a resident of this state on whom
notices or orders of the commissioner or process may be served, and any
changes in amendments or changes in the foregoing.
Any residual market mechanism, plan, or agreement to implement a residual
market mechanism, and any changes or amendments in the plan shall be
submitted in writing to the commissioner for consideration and approval,
together with any other information as may be reasonably required. The
commissioner shall approve only those agreements that he or she finds
contemplates both the use of rates which meet the standards of this chapter
and activities and practices, that are not unfair, unreasonable, or otherwise
inconsistent with the provisions of this chapter. At any time after any
agreements are in effect, the commissioner may review the practices and
activities of the adherents to these agreements and if, after a hearing, the
commissioner finds that any practice or activity is unfair or unreasonable, or is
otherwise inconsistent with the provisions of this chapter, the commissioner
may issue a written order to the parties and either require the discontinuance of
these acts or revoke approval of any such agreement.
If the commissioner finds after a hearing that any activity or practice of an
insurer participating in joint underwriting or a pool is unfair, is unreasonable, will
tend to lessen competition in any market, or is otherwise inconsistent with the
provisions or purposes of this chapter, an order may be issued requiring the
discontinuance of the activity or practice.
As a condition of its authority under this chapter to transact casualty insurance
(as defined in KRS 304.5-070) in this state, every insurer so authorized shall
become and remain a signatory to the "Kentucky automobile insurance plan"
as it is presently formulated or as it is hereafter amended with the approval of
the commissioner. The "Kentucky automobile insurance plan" shall be deemed
to be a mandated "residual market mechanism" as defined in KRS
304.13-011(8).
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1130, effective July 15, 2010. -Amended 2000 Ky. Acts ch. 380, sec. 15, effective July 14, 2000. -- Amended
1986 Ky. Acts ch. 430, sec. 1, effective July 15, 1986. -- Created 1982 Ky. Acts
ch. 278, sec. 14, effective July 15, 1982.
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