2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 48 - Liability Self-Insurance Groups 48.48-250 Assessment of members when assets insufficient or when deficiency in fund year -- Determination of insolvency -- Delinquency proceedings -- Financing of payments by governmental entities.
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304.48-250 Assessment of members when assets insufficient or when
deficiency in fund year -- Determination of insolvency -- Delinquency
proceedings -- Financing of payments by governmental entities.
(1)
(2)
(3)
(4)
(5)
(6)
If the assets of a liability self-insurance group are at any time insufficient to
enable the group to discharge its legal liabilities, other obligations, and to
maintain the required reserves under this subtitle, the group shall immediately
levy an assessment upon its members for the amount necessary to make up
the deficiency.
If there is a deficiency in any fund year, the deficiency shall be made up
immediately, from the following:
(a) Surplus from a fund year other than the current fund year after prior
notice of the transfer has been given to the commissioner;
(b) Administrative funds;
(c) Assessment of membership; or
(d) Alternate methods as the commissioner may direct or approve.
If a liability self-insurance group fails to assess its members within thirty (30)
days to make up a deficit, the commissioner shall order it to do so. This
subsection shall not apply to liability self-insurance groups formed by
governmental entities which do not have joint and several liability.
If a liability self-insurance group fails to make the required assessment of its
members within thirty (30) days after the commissioner orders it to do so, or if
the deficiency is not fully made up within sixty (60) days after the date on which
the assessment is made, or within a longer period of time as may be permitted
by the commissioner, the group shall be determined to be insolvent and may
be placed in delinquency proceedings as an insurer pursuant to Subtitle 33 of
this chapter.
(a) Governmental entities that:
1.
Participate or have participated in a liability self-insurance group
authorized by this subtitle; and
2.
Are assessed by the liability self-insurance group to cover an
accrued deficit;
may finance the payment of the assessment over a period not to exceed
twenty (20) years.
(b) Financing obtained pursuant to paragraph (a) of this subsection may be
accomplished by:
1.
The issuance of bonds, notes, or other obligations; or
2.
A lease, installment payment agreement, or other similar
agreement.
(c) If the governmental entity fails to make a scheduled payment on the
financing obtained pursuant to paragraph (a) of this subsection, any
payments due to that governmental entity shall be withheld or intercepted
using the process established in KRS 160.160(5).
Except as provided in subsection (5) of this section, all other provisions of the
Kentucky Revised Statutes applying to any financing obtained by a
governmental entity shall apply.
Effective:June 25, 2013
History: Amended 2013 Ky. Acts ch. 75, sec. 4, effective June 25, 2013. -Amended 2010 Ky. Acts ch. 24, sec. 1604, effective July 15, 2010; and ch. 48,
sec. 7, effective July 15, 2010. -- Created 1994 Ky. Acts ch. 358, sec. 25,
effective July 15, 1994.
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