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304.20-020 Uninsured vehicle coverage -- Insolvency of insurer.
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No automobile liability or motor vehicle liability policy of insurance insuring
against loss resulting from liability imposed by law for bodily injury or death
suffered by any person arising out of the ownership, maintenance or use of a
motor vehicle shall be delivered or issued for delivery in this state with respect
to any motor vehicle registered or principally garaged in this state unless
coverage is provided therein or supplemental thereto, in limits for bodily injury
or death set forth in KRS 304.39-110 under provisions approved by the
commissioner, for the protection of persons insured thereunder who are legally
entitled to recover damages from owners or operators of uninsured motor
vehicles because of bodily injury, sickness or disease, including death,
resulting therefrom; provided that the named insured shall have the right to
reject in writing such coverage; and provided further that, unless the named
insured requests such coverage in writing, such coverage need not be
provided in or supplemental to a renewal policy where the named insured had
rejected the coverage in connection with a policy previously issued to him or
her by the same insurer.
For the purpose of this coverage the term "uninsured motor vehicle" shall,
subject to the terms and conditions of such coverage, be deemed to include an
insured motor vehicle where the liability insurer thereof is unable to make
payment with respect to the legal liability of its insured within the limits specified
therein because of insolvency; an insured motor vehicle with respect to which
the amounts provided, under the bodily injury liability bond or insurance policy
applicable at the time of the accident with respect to any person or organization
legally responsible for the use of such motor vehicle, are less than the limits
described in KRS 304.39-110; and an insured motor vehicle to the extent that
the amounts provided in the liability coverage applicable at the time of the
accident is denied by the insurer writing the same.
Protection against an insurer's insolvency shall be applicable only to accidents
occurring during a policy period in which its insured's uninsured motorist
coverage is in effect where the liability insurer of the tortfeasor becomes
insolvent within one (1) year after such an accident. Nothing herein contained
shall be construed to prevent any insurer from affording insolvency protection
under terms and conditions more favorable to its insureds than is provided
hereunder.
In the event of payment to any person under the coverage required by this
section and subject to the terms and conditions of such coverage, the insurer
making such payment shall, to the extent thereof, be entitled to the proceeds of
any settlement or judgment resulting from the exercise of any rights of recovery
of such person against any person or organization legally responsible for the
bodily injury for which such payment is made, including the proceeds
recoverable from the assets of the insolvent insurer.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1307, effective July 15, 2010. -Amended 1978 Ky. Acts ch. 384, sec. 105, effective June 17, 1978. -- Created
1970 Ky. Acts ch. 301, subtit. 20, sec. 2, effective June 18, 1970.
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