342.350 Mutual insurance associations and reciprocal or interinsurance exchanges

365 words·~2 min read·/ky/342-350

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

for compensation claims -- Reinsurance -- Self-insured groups -- Power to

contract, sue, and be sued.

(1)In order to comply with KRS 342.340, groups of employers may form, either among

themselves or with employers in other states, mutual insurance associations, or

reciprocal or interinsurance exchanges subject to the insurance laws of this state and

any reasonable conditions and restrictions not inconsistent therewith fixed by the

commissioner. Membership in these mutual insurance associations or reciprocal or

interinsurance exchanges so approved, together with evidence of the payment of

premiums due, shall be evidence of compliance with KRS 342.340.

(2)The commissioner may, except as provided in subsection (3), require any mutual

insurance association or reciprocal or interinsurance exchange to purchase an

annuity or to effect reinsurance with a company authorized to transact insurance in

this state or to make a deposit with a bank or trust company of this state that shall in

either case be approved by the commissioner for the purpose of fully securing the

payment of all deferred installments upon any claim for compensation.

(3)Any mutual insurance association or reciprocal or interinsurance exchange

possessing a surplus of at least one hundred thousand dollars ($100,000) and not

less in amount than the capital required of a domestic stock insurance company

transacting the same kind of insurance shall not be required to purchase an annuity

or effect reinsurance with a company authorized to transact insurance in this state or

to make a deposit with a bank or trust company of this state for the purpose of fully

securing the payment of all deferred installments upon any claim for compensation.

(4)In addition, under the provisions of KRS 304.50-010 and administrative regulations

promulgated by the commissioner of the Department of Insurance, twenty

(20)or

more employers with common interests or membership in a bona fide trade

association or two

(2)or more city, county, charter county, urban-county, or

consolidated local government employers or their agencies may enter into

agreements to pool their liabilities under this chapter for the purpose of qualifying

as self-insured groups. Any heterogeneous self-insured group so authorized may

contract and may sue and be sued in the name adopted by the group.