Kentucky Statutes 304.17A-832 – Statement of financial condition — Authority for administrative regulations
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(1) All self-insured employer-organized association groups shall file with the commissioner a statement of financial condition audited by an independent certified public accountant on or before one hundred twenty (120) days from the end of the group’s fiscal year for the immediately preceding fiscal year. The financial statement shall be in a form approved by the commissioner and shall include:
(a) Actuarially appropriate reserves for:
1. Known claims and expenses associated therewith.
2. Claims incurred but not reported and any expenses associated therewith.
3. Unearned contributions and assessments.
4. Bad debts, which reserves shall be known as liabilities.
(b) An actuarial opinion by a qualified actuary and a supporting reserve study regarding reserves for known claims and expenses associated therewith. The reserve study shall include documentation sufficient for another actuary practicing in the same field to evaluate the work. The documentation shall describe clearly the sources of data, material assumptions, and methods.
(2) No person shall make a deceptive statement or fail to correct a misstatement in connection with the solicitation of membership of a group.
(3) The financial statements required by this section shall be completed in accordance with administrative regulations promulgated by the commissioner.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1267, effective July 15, 2010. — Created
2003 Ky. Acts ch. 78, sec. 17, effective June 24, 2003.
(a) Actuarially appropriate reserves for:
Terms Used In Kentucky Statutes 304.17A-832
- Association: means an entity, other than an employer-organized association, that has been organized and is maintained in good faith for purposes other than that of obtaining insurance for its members and that has a constitution and bylaws. See Kentucky Statutes 304.17A-005
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Year: means calendar year. See Kentucky Statutes 446.010
1. Known claims and expenses associated therewith.
2. Claims incurred but not reported and any expenses associated therewith.
3. Unearned contributions and assessments.
4. Bad debts, which reserves shall be known as liabilities.
(b) An actuarial opinion by a qualified actuary and a supporting reserve study regarding reserves for known claims and expenses associated therewith. The reserve study shall include documentation sufficient for another actuary practicing in the same field to evaluate the work. The documentation shall describe clearly the sources of data, material assumptions, and methods.
(2) No person shall make a deceptive statement or fail to correct a misstatement in connection with the solicitation of membership of a group.
(3) The financial statements required by this section shall be completed in accordance with administrative regulations promulgated by the commissioner.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1267, effective July 15, 2010. — Created
2003 Ky. Acts ch. 78, sec. 17, effective June 24, 2003.