Kentucky Statutes 342.823 – Discounting not to be used in determining solvency — Authority’s reports — Annual statement of solvency — Circumstances permitting contract audit with certified public accountant — Discretionary levy and enforcement o…
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(1) In determining the solvency of the authority in regard to maintaining adequate reserves, the commissioner of insurance, the independent accountant engaged for the annual audit, and the board, in exercising its prudent stewardship, shall not utilize the practice of “discounting” the funds to reduce future liabilities, except in conformity with standards or rules promulgated by the National Association of Insurance Commissioners.
(2) The authority shall file reports required by KRS § 304.3-240.
(3) The authority shall file a report not later than March 31 of each year indicating the business done by the authority during the previous year, including a balance sheet showing assets and liabilities at the beginning and conclusion of that year. The report shall be a public record and shall be delivered to the Governor, commissioner of insurance, Auditor of Public Accounts, Attorney General, and the co-chairs of the Legislative Research Commission. Additionally, a statement of solvency shall be prepared which shall include, at a minimum:
(a) A summary of the prior quarterly reports required in KRS § 342.821;
(b) A management projection of the future solvency status for the authority; and
(c) Any recommendations pertaining to the same.
(4) The authority shall not enter into any contract with a certified public accountant for an audit unless the Auditor of Public Accounts has declined in writing to perform the audit or has failed to respond within thirty (30) days of receipt of a written request for an audit. Any contract with a certified public accountant entered into as a result of the Auditor of Public Accounts declining to perform the audit shall specify the following:
(a) That the certified public accountant shall forward a copy of the audit report and management letters to the Auditor of Public Accounts, Attorney General, and Legislative Research Commission; and
(b) That the Auditor of Public Accounts shall have the right to review the certified public accountant’s work papers.
(5) If at any time the assets of the authority are less than its liabilities, the board may levy an assessment on its policyholders in the manner provided in Subtitle 24 of KRS Chapter 304.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1856, effective July 15, 2010. — Amended 1998 Ky. Acts ch. 361, sec. 6, effective July 15, 1998. — Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 43, effective December 12, 1996. — Created
1994 Ky. Acts ch. 181, Part 12, sec. 50, effective April 4, 1994.
(2) The authority shall file reports required by KRS § 304.3-240.
Terms Used In Kentucky Statutes 342.823
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Attorney: means attorney-at-law. See Kentucky Statutes 446.010
- Board: means the Workers' Compensation Board. See Kentucky Statutes 342.0011
- 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
- Contract: A legal written agreement that becomes binding when signed.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Work: means providing services to another in return for remuneration on a regular and sustained basis in a competitive economy. See Kentucky Statutes 342.0011
- Year: means calendar year. See Kentucky Statutes 446.010
(3) The authority shall file a report not later than March 31 of each year indicating the business done by the authority during the previous year, including a balance sheet showing assets and liabilities at the beginning and conclusion of that year. The report shall be a public record and shall be delivered to the Governor, commissioner of insurance, Auditor of Public Accounts, Attorney General, and the co-chairs of the Legislative Research Commission. Additionally, a statement of solvency shall be prepared which shall include, at a minimum:
(a) A summary of the prior quarterly reports required in KRS § 342.821;
(b) A management projection of the future solvency status for the authority; and
(c) Any recommendations pertaining to the same.
(4) The authority shall not enter into any contract with a certified public accountant for an audit unless the Auditor of Public Accounts has declined in writing to perform the audit or has failed to respond within thirty (30) days of receipt of a written request for an audit. Any contract with a certified public accountant entered into as a result of the Auditor of Public Accounts declining to perform the audit shall specify the following:
(a) That the certified public accountant shall forward a copy of the audit report and management letters to the Auditor of Public Accounts, Attorney General, and Legislative Research Commission; and
(b) That the Auditor of Public Accounts shall have the right to review the certified public accountant’s work papers.
(5) If at any time the assets of the authority are less than its liabilities, the board may levy an assessment on its policyholders in the manner provided in Subtitle 24 of KRS Chapter 304.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1856, effective July 15, 2010. — Amended 1998 Ky. Acts ch. 361, sec. 6, effective July 15, 1998. — Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 43, effective December 12, 1996. — Created
1994 Ky. Acts ch. 181, Part 12, sec. 50, effective April 4, 1994.