Kentucky Statutes 304.50-120 – Aggregate excess insurance — Standards for waiver and exemption — Administrative regulations — Eligibility to write excess liability coverage for group
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(1) The commissioner shall promulgate administrative regulations setting forth the requirements for aggregate excess insurance and the standards for granting a waiver, but a workers’ compensation self-insured group shall not be required to purchase aggregate excess insurance if the group’s fund balance is thirty percent (30%) or more of earned premiums.
(2) Except for a worker’s compensation self-insured group granted a waiver or exempted under subsection (1) of this section, the trustees shall purchase aggregate excess insurance.
(3) The trustees shall purchase specific excess insurance coverage with a limit of at least twenty-five million dollars ($25,000,000) per occurrence.
(4) To be eligible to write excess liability coverage for a self-insured group, a casualty insurance company shall at all times maintain twenty-five million dollars ($25,000,000) of minimum policyholder surplus.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1642, effective July 15, 2010. — Amended 2008 Ky. Acts ch. 183, sec. 7, effective July 15, 2008. — Created 2005 Ky. Acts ch. 7, sec. 24, effective March 1, 2005.
(2) Except for a worker’s compensation self-insured group granted a waiver or exempted under subsection (1) of this section, the trustees shall purchase aggregate excess insurance.
Terms Used In Kentucky Statutes 304.50-120
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Self-insured group: means a group self-insurance fund. See Kentucky Statutes 304.50-015
- Specific excess insurance: means an insurance policy which insures the amount of a claim from one (1) occurrence involving one (1) or more employees or employers in the same occurrence or incident of exposure in excess of a specified dollar amount to a stated limit. See Kentucky Statutes 304.50-015
- Trustees: means persons elected by the group members or appointed by the board of directors of the sponsoring trade association or association of governmental entities to oversee the administration of the self-insured group. See Kentucky Statutes 304.50-015
(3) The trustees shall purchase specific excess insurance coverage with a limit of at least twenty-five million dollars ($25,000,000) per occurrence.
(4) To be eligible to write excess liability coverage for a self-insured group, a casualty insurance company shall at all times maintain twenty-five million dollars ($25,000,000) of minimum policyholder surplus.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1642, effective July 15, 2010. — Amended 2008 Ky. Acts ch. 183, sec. 7, effective July 15, 2008. — Created 2005 Ky. Acts ch. 7, sec. 24, effective March 1, 2005.