Kentucky Statutes 304.39-080 – Security covering motor vehicle
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(1) “Security covering the vehicle” is the insurance or other security so provided. The vehicle for which the security is so provided is the “secured vehicle.”
(2) “Basic reparation insurance” includes a contract, self-insurance, or other legal means under which the obligation to pay basic reparation benefits arises.
(3) This Commonwealth, its political subdivisions, municipal corporations, and public agencies may continuously provide, pursuant to subsection (6) of this section, security for the payment of basic reparation benefits in accordance with this subtitle for injury arising from maintenance or use of motor vehicles owned by those entities and operated with their permission.
(4) The United States and its public agencies and any other state, its political subdivisions, municipal corporation, and public agencies may provide, pursuant to subsection (6) of this section, security for the payment of basic reparation benefits in accordance with this subtitle for injury arising from maintenance or use of motor vehicles owned by those entities and operated with their permission.
(5) Except for entities described in subsections (3) and (4) of this section, every owner or operator of a motor vehicle registered in this Commonwealth or operated in this Commonwealth with an owner’s permission shall continuously provide with respect to the motor vehicle while it is either present or registered in this Commonwealth, and any other person may provide with respect to any motor vehicle, by a contract of insurance or by qualifying as a self-insurer, security for the payment of basic reparation benefits in accordance with this subtitle and security for payment of tort liabilities, arising from maintenance or use of the motor vehicle. The owner of a motor vehicle who fails to maintain security on a motor vehicle in accordance with this subsection shall have his or her motor vehicle registration revoked in accordance with KRS § 186A.040 and shall be subject to the penalties in KRS
304.99-060. An owner who permits another person to operate a motor vehicle without security on the motor vehicle as required by this subtitle shall be subject to the penalties in KRS § 304.99-060.
(6) Security may be provided by a contract of insurance or by qualifying as a self- insurer or obligated government in compliance with this subtitle.
(7) Self-insurance, subject to approval of the commissioner of insurance, is effected by filing with the commissioner in satisfactory form:
(a) A continuing undertaking by the owner or other appropriate person to pay tort liabilities or basic reparation benefits, or both, and to perform all other obligations imposed by this subtitle;
(b) Evidence that appropriate provision exists for prompt and efficient administration of all claims, benefits, and obligations provided by this subtitle; and
(c) Evidence that reliable financial arrangements, deposits, or commitments exist providing assurance, substantially equivalent to that afforded by a policy of insurance, complying with this subtitle, for payment of tort liabilities, basic reparation benefits, and all other obligations imposed by this subtitle.
(8) An entity described in subsection (3) or (4) of this section may provide security by lawfully obligating itself to pay basic reparation benefits in accordance with this subtitle.
(9) A person providing security pursuant to subsection (7) of this section is a “self- insurer.” An entity described in subsection (3) or (4) of this section that has provided security pursuant to subsection (6) of this section is an “obligated government.”
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1526, effective July 15, 2010. — Amended 2007 Ky. Acts ch. 38, sec. 1, effective June 26, 2007. — Amended 2005
Ky. Acts ch. 152, sec. 1, effective June 20, 2005. — Amended 1998 Ky. Acts ch. 442, sec. 3, effective July 15, 1998. — Amended 1996 Ky. Acts ch. 341, sec. 6, effective July 15, 1996. — Created 1974 Ky. Acts ch. 385, sec. 8, effective July 1, 1975.
(2) “Basic reparation insurance” includes a contract, self-insurance, or other legal means under which the obligation to pay basic reparation benefits arises.
Terms Used In Kentucky Statutes 304.39-080
- Contract: A legal written agreement that becomes binding when signed.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Motor vehicle: means any vehicle which transports persons or property upon the public highways of the Commonwealth, propelled by other than muscular power except road rollers, road graders, farm tractors, vehicles on which power shovels are mounted, such other construction equipment customarily used only on the site of construction and which is not practical for the transportation of persons or property upon the highways, such vehicles as travel exclusively upon rails, and such vehicles as are propelled by electrical power obtained from overhead wires while being operated within any municipality or where said vehicles do not travel more than five (5) miles beyond the said limits of any municipality. See Kentucky Statutes 304.39-020
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Owner: means a person, other than a lienholder or secured party, who owns or has title to a motor vehicle or is entitled to the use and possession of a motor vehicle subject to a security interest held by another person. See Kentucky Statutes 304.39-020
- Security: means any continuing undertaking complying with this subtitle, for payment of tort liabilities, basic reparation benefits, and all other obligations imposed by this subtitle. See Kentucky Statutes 304.39-020
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
(3) This Commonwealth, its political subdivisions, municipal corporations, and public agencies may continuously provide, pursuant to subsection (6) of this section, security for the payment of basic reparation benefits in accordance with this subtitle for injury arising from maintenance or use of motor vehicles owned by those entities and operated with their permission.
(4) The United States and its public agencies and any other state, its political subdivisions, municipal corporation, and public agencies may provide, pursuant to subsection (6) of this section, security for the payment of basic reparation benefits in accordance with this subtitle for injury arising from maintenance or use of motor vehicles owned by those entities and operated with their permission.
(5) Except for entities described in subsections (3) and (4) of this section, every owner or operator of a motor vehicle registered in this Commonwealth or operated in this Commonwealth with an owner’s permission shall continuously provide with respect to the motor vehicle while it is either present or registered in this Commonwealth, and any other person may provide with respect to any motor vehicle, by a contract of insurance or by qualifying as a self-insurer, security for the payment of basic reparation benefits in accordance with this subtitle and security for payment of tort liabilities, arising from maintenance or use of the motor vehicle. The owner of a motor vehicle who fails to maintain security on a motor vehicle in accordance with this subsection shall have his or her motor vehicle registration revoked in accordance with KRS § 186A.040 and shall be subject to the penalties in KRS
304.99-060. An owner who permits another person to operate a motor vehicle without security on the motor vehicle as required by this subtitle shall be subject to the penalties in KRS § 304.99-060.
(6) Security may be provided by a contract of insurance or by qualifying as a self- insurer or obligated government in compliance with this subtitle.
(7) Self-insurance, subject to approval of the commissioner of insurance, is effected by filing with the commissioner in satisfactory form:
(a) A continuing undertaking by the owner or other appropriate person to pay tort liabilities or basic reparation benefits, or both, and to perform all other obligations imposed by this subtitle;
(b) Evidence that appropriate provision exists for prompt and efficient administration of all claims, benefits, and obligations provided by this subtitle; and
(c) Evidence that reliable financial arrangements, deposits, or commitments exist providing assurance, substantially equivalent to that afforded by a policy of insurance, complying with this subtitle, for payment of tort liabilities, basic reparation benefits, and all other obligations imposed by this subtitle.
(8) An entity described in subsection (3) or (4) of this section may provide security by lawfully obligating itself to pay basic reparation benefits in accordance with this subtitle.
(9) A person providing security pursuant to subsection (7) of this section is a “self- insurer.” An entity described in subsection (3) or (4) of this section that has provided security pursuant to subsection (6) of this section is an “obligated government.”
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1526, effective July 15, 2010. — Amended 2007 Ky. Acts ch. 38, sec. 1, effective June 26, 2007. — Amended 2005
Ky. Acts ch. 152, sec. 1, effective June 20, 2005. — Amended 1998 Ky. Acts ch. 442, sec. 3, effective July 15, 1998. — Amended 1996 Ky. Acts ch. 341, sec. 6, effective July 15, 1996. — Created 1974 Ky. Acts ch. 385, sec. 8, effective July 1, 1975.