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304.39-080 Security covering motor vehicle.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
"Security covering the vehicle" is the insurance or other security so provided.
The vehicle for which the security is so provided is the "secured vehicle."
"Basic reparation insurance" includes a contract, self-insurance, or other legal
means under which the obligation to pay basic reparation benefits arises.
This Commonwealth, its political subdivisions, municipal corporations, and
public agencies may continuously provide, pursuant to subsection (6) of this
section, security for the payment of basic reparation benefits in accordance
with this subtitle for injury arising from maintenance or use of motor vehicles
owned by those entities and operated with their permission.
The United States and its public agencies and any other state, its political
subdivisions, municipal corporation, and public agencies may provide, pursuant
to subsection (6) of this section, security for the payment of basic reparation
benefits in accordance with this subtitle for injury arising from maintenance or
use of motor vehicles owned by those entities and operated with their
permission.
Except for entities described in subsections (3) and (4) of this section, every
owner or operator of a motor vehicle registered in this Commonwealth or
operated in this Commonwealth with an owner's permission shall continuously
provide with respect to the motor vehicle while it is either present or registered
in this Commonwealth, and any other person may provide with respect to any
motor vehicle, by a contract of insurance or by qualifying as a self-insurer,
security for the payment of basic reparation benefits in accordance with this
subtitle and security for payment of tort liabilities, arising from maintenance or
use of the motor vehicle. The owner of a motor vehicle who fails to maintain
security on a motor vehicle in accordance with this subsection shall have his or
her motor vehicle registration revoked in accordance with KRS 186A.040 and
shall be subject to the penalties in KRS 304.99-060. An owner who permits
another person to operate a motor vehicle without security on the motor vehicle
as required by this subtitle shall be subject to the penalties in KRS 304.99-060.
Security may be provided by a contract of insurance or by qualifying as a
self-insurer or obligated government in compliance with this subtitle.
Self-insurance, subject to approval of the commissioner of insurance, is
effected by filing with the commissioner in satisfactory form:
(a) A continuing undertaking by the owner or other appropriate person to pay
tort liabilities or basic reparation benefits, or both, and to perform all other
obligations imposed by this subtitle;
(b) Evidence that appropriate provision exists for prompt and efficient
administration of all claims, benefits, and obligations provided by this
subtitle; and
(c) Evidence that reliable financial arrangements, deposits, or commitments
exist providing assurance, substantially equivalent to that afforded by a
policy of insurance, complying with this subtitle, for payment of tort
liabilities, basic reparation benefits, and all other obligations imposed by
this subtitle.
An entity described in subsection (3) or (4) of this section may provide security
(9)
by lawfully obligating itself to pay basic reparation benefits in accordance with
this subtitle.
A person providing security pursuant to subsection (7) of this section is a
"self-insurer." An entity described in subsection (3) or (4) of this section that
has provided security pursuant to subsection (6) of this section is an "obligated
government."
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1526, effective July 15, 2010. -Amended 2007 Ky. Acts ch. 38, sec. 1, effective June 26, 2007. -- Amended
2005 Ky. Acts ch. 152, sec. 1, effective June 20, 2005. -- Amended 1998 Ky.
Acts ch. 442, sec. 3, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 341,
sec. 6, effective July 15, 1996. -- Created 1974 Ky. Acts ch. 385, sec. 8,
effective July 1, 1975.
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