Download as PDF
304.48-090 Investment of funds.
(1)
(2)
The funds of a liability self-insurance group shall be invested in:
(a) United States Government bonds, United States Treasury notes, United
States Treasury bills, or other direct obligations guaranteed by the full
faith and credit of the United States Government or its agencies;
(b) Tax exempt obligations issued by the Commonwealth of Kentucky or its
agencies with a minimum rating of "A" by Standard & Poor's;
(c) Obligations issued by a county, district, municipality, or other legal
authority within the Commonwealth with a minimum rating of "AA" by
Standard & Poor's;
(d) Investment share accounts in a savings and loan association in the
Commonwealth whose deposits are insured by a federal agency;
(e) Certificates of deposit if issued by a duly chartered commercial bank;
(f) Equity securities actively traded on the New York or NASDAQ Stock
Exchanges or other registered national securities exchanges with no
individual equity holding comprising greater than ten percent (10%) of the
equity portion of the portfolio, reflected on the most recent quarterly or
annual statement of financial condition on file with the commissioner, at
the time of purchase, as follows:
1.
An investment in an individual equity holding shall not represent
more than five percent (5%) of the total market value of the security;
and
2.
Investments in equity securities shall not exceed twenty percent
(20%) of the total market value of the investment portfolio of the
liability self-insurance group reflected on the most recent quarterly or
annual statement of financial condition on file with the
commissioner;
(g) Corporate bonds if:
1.
The bond is issued, assumed, or guaranteed by a solvent institution
created or existing under the laws of the United States, or a state,
province, district, or territory;
2.
The corporate bond investments do not exceed twenty-five percent
(25%) of the total market value of the investment portfolio reflected
on the most recent quarterly or annual statement of financial
condition on file with the commissioner; and
3.
The bond has a minimum rating of "A" by Standard and Poor's; or
(h) Mutual funds and exchange traded funds if, at the time of purchase, the
investments do not exceed twenty percent (20%) of the total market value
of the investment portfolio reflected on the most recent quarterly or annual
statement of financial condition on file with the commissioner.
Of the aggregate investments made under this section:
(a) Not less than fifty percent (50%) of the total market value of the entire
investment portfolio shall be held in cash, cash equivalents, or securities
as described in subsection (1)(a) to (e) of this section; and
(b)
(3)
A minimum of five percent (5%) of the total investment portfolio value
shall be maintained in cash or cash equivalent accounts or United States
Treasury and Federal Agency Securities with a remaining maturity of one
(1) year or less.
The commissioner may permit variation from the requirements of this section
for good cause shown.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1595, effective July 15, 2010; and
ch. 48, sec. 2, effective July 15, 2010. -- Created 1994 Ky. Acts ch. 358, sec. 9,
effective July 15, 1994.
Legislative Research Commission Note (7/15/2010). References to the
"executive director" of insurance in subsections (1) and (3) of this section, as
amended by 2010 Ky. Acts ch. 48, sec. 2, have been changed in codification to
the "commissioner" of insurance to reflect the reorganization of certain parts of
the Executive Branch, as set forth in Executive Order 2009-535 and confirmed
by the General Assembly in 2010 Ky. Acts ch. 24. These changes were made
by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.
Legislative Research Commission Note (7/15/2010). This section was amended
by 2010 Ky. Acts chs. 24 and 48, which are in conflict. Under KRS 446.250,
Acts ch. 48, which was last enacted by the General Assembly, prevails.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.