Kentucky Statutes 342.350 – Mutual insurance associations and reciprocal or interinsurance exchanges for compensation claims — Reinsurance — Self-insured groups — Power to contract, sue, and be sued
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(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.
Effective: June 25, 2013
History: Amended 2013 Ky. Acts ch. 75, sec. 3, effective June 25, 2013. — Amended
2010 Ky. Acts ch. 24, sec. 1824, effective July 15, 2010. — Amended 2005 Ky. Acts ch. 7, sec. 45, effective March 1, 2005. — Amended 1994 Ky. Acts ch. 181, Part 15, sec. 84, effective April 4, 1994. — Amended 1990 Ky. Acts ch. 35, sec. 1, effective July 13, 1990; and ch. 490, sec. 5, effective July 13, 1990. — Amended 1982 Ky. Acts ch. 447, sec. 11, effective January 1, 1984. — Amended 1980 Ky. Acts ch. 104, sec. 11, effective July 15, 1980. — Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 26, sec. 4, effective January 1, 1977. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4948.
(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.
Terms Used In Kentucky Statutes 342.350
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- City: includes town. See Kentucky Statutes 446.010
- Commissioner: means the commissioner of the Department of Workers' Claims under the direction and supervision of the secretary of the Education and Labor Cabinet. See Kentucky Statutes 342.0011
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Compensation: means all payments made under the provisions of this chapter representing the sum of income benefits and medical and related benefits. See Kentucky Statutes 342.0011
- Contract: A legal written agreement that becomes binding when signed.
- Department: means the Department of Workers' Claims in the Education and
Labor Cabinet. See Kentucky Statutes 342.0011 - Domestic: when applied to a corporation, partnership, business trust, or limited liability company, means all those incorporated or formed by authority of this state. See Kentucky Statutes 446.010
- 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.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(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.
Effective: June 25, 2013
History: Amended 2013 Ky. Acts ch. 75, sec. 3, effective June 25, 2013. — Amended
2010 Ky. Acts ch. 24, sec. 1824, effective July 15, 2010. — Amended 2005 Ky. Acts ch. 7, sec. 45, effective March 1, 2005. — Amended 1994 Ky. Acts ch. 181, Part 15, sec. 84, effective April 4, 1994. — Amended 1990 Ky. Acts ch. 35, sec. 1, effective July 13, 1990; and ch. 490, sec. 5, effective July 13, 1990. — Amended 1982 Ky. Acts ch. 447, sec. 11, effective January 1, 1984. — Amended 1980 Ky. Acts ch. 104, sec. 11, effective July 15, 1980. — Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 26, sec. 4, effective January 1, 1977. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4948.