KRS 162.490: Insurance fund may be used in case of delay in payment under insurance

policy.

If any insurance company delays in paying to the board of education the amount of any

loss under a policy, the board may, on the recommendation of its building and finance

committee, appropriate from the insurance fund a sum not exceeding the amount of the

probable loss under the policy to aid in the prompt restoration of the loss. The amount

drawn from the insurance fund shall not exceed the amount collectible from the poli cy. A

resolution shall be adopted setting over to the insurance fund the proceeds of the policy or

sufficient thereof to replace the amount so used, and the proceeds when collected shall be

so used and not otherwise.