2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 48 - Liability Self-Insurance Groups 48.48-140 Operation of group by board of trustees -- Powers and duties -- Directors equivalent to trustees for subtitle.
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304.48-140 Operation of group by board of trustees -- Powers and duties -Directors equivalent to trustees for subtitle.
(1)
(2)
(3)
(4)
(5)
Each group shall be operated by a board of trustees which shall consist of not
less than two (2) persons selected in the manner prescribed by the liability
self-insurance group or by other laws of the Commonwealth. The trustees shall
not be officers, employees, or agents of an administrator or servicing
organization. All trustees shall be residents of Kentucky or officers of
corporations authorized to do business in Kentucky. The trustees shall have
the authority to administer the operations of the liability self-insurance group,
such as assuring that there is adequate funding to cover professional or public
liabilities, assuring that all claims are paid promptly, and that all necessary
precautions are taken to safeguard the assets of the group.
The board of trustees shall:
(a) Maintain responsibility for all moneys collected or disbursed from the
group;
(b) Maintain minutes of its meetings and make the minutes available to the
commissioner;
(c) Designate an administrator to carry out the policies established by the
board of trustees and to provide day-to-day management of the group,
and delineate in the written minutes of its meetings the areas of authority
it delegates to the administrator; and
(d) Establish a formal conflict-of-interest policy or code of conduct applicable
to the board of trustees, officers, and employees that includes a
description of the system used to monitor compliance with the
conflict-of-interest policy or code of conduct.
The board of trustees shall not:
(a) Extend credit to individual group members for payment of contributions or
assessments, except pursuant to payment plans filed with the
commissioner; or
(b) Permit the loan of any moneys to, or borrow any moneys from, the group
or in the name of the group. However, a liability self-insurance group
formed by governmental entities may borrow moneys in the name of the
group.
In its discretion, the liability self-insurance group may refer to its trustees as
directors. If this is done, the provisions of this subtitle referring to trustees shall
be construed as referring to directors.
Upon the request of a group member, a liability self-insurance group shall
make available the statement of financial condition required by subsection (1)
of this section.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1598, effective July 15, 2010; and
ch. 48, sec. 3, effective July 15, 2010. -- Created 1994 Ky. Acts ch. 358, sec. 14,
effective July 15, 1994.
Legislative Research Commission Note (7/15/2010). This section was amended
by 2010 Ky. Acts chs. 24 and 48, which do not appear to be in conflict and have
been codified together.
Legislative Research Commission Note (7/15/2010). During the initial processing
of the bill request that became Senate Bill 77 (2010 Ky. Acts ch. 48, sec. 3), a
new provision that was drafted as an amendment to KRS 304.48-170 was
mistakenly added to this section as well, and the bill passed both chambers with
the new subsection (5) included in this section.
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