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304.45-070 Requirements and prohibitions for risk retention and purchasing
groups.
(1)
(2)
A risk retention group:
(a) Shall not be required or permitted to join or contribute financially to any
insurance insolvency guaranty fund or similar mechanism in this state, nor
shall any risk retention group, its insureds, or claimants against its
insureds receive any benefit from any such fund for claims arising under
insurance policies issued by such risk retention group; and
(b) Shall participate in this state's joint underwriting associations and
mandatory liability pools as provided by this chapter.
A purchasing group:
(a) Which obtains insurance covering its members' risks from an authorized
insurer shall have Kentucky Insurance Guaranty Association coverage
only for risks resident or located in this state;
(b) Which obtains insurance covering its members' risks from an insurer not
authorized in this state or a risk retention group shall not have any
Kentucky Insurance Guaranty Association coverage for such risks,
wherever resident or located;
(c) Shall not purchase insurance from a risk retention group that is not
chartered in a state or from an insurer not admitted in the state in which
the purchasing group is located, unless the purchase is effected through a
person holding the appropriate license pursuant to the insurance agent,
insurance broker, or surplus lines laws and regulations of such state;
(d) Shall not offer insurance policy coverage prohibited by statute or
regulation or declared unlawful by the highest court of this state;
(e) Shall not purchase insurance providing for a deductible or self-insured
retention applicable to the group as a whole, but may provide for a
deductible or self-insured retention applicable to individual members; and
(f) Is subject to the same standards regarding aggregate limits which are
applicable to all purchases of group insurance.
Effective:July 13, 1990
History: Amended 1990 Ky. Acts ch. 165, sec. 7, effective July 13, 1990. -Created 1986 Ky. Acts ch. 308, sec. 7, effective July 15, 1986.
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