KRS 304.14-530: Regulations establishing minimum standards for loss ratios.

Medicare supplement policies shall be expected to return to policyholders benefits which

are reasonable in relation to the premium charged. The commissioner shall issue

reasonable regulations to establish minimum standards for loss ratios of Medicare

supplement policies on the basis of incurred claims experience and earned premiums for

the entire period for which rates are computed to provide coverage and in accordance

with accepted actuarial principles and practices. For purposes of regulations issued

pursuant to this section, Medicare supplement policies issued as a result of solicitations of

individuals through the mail or mass media advertising, including both print and

broadcast advertising, shall be treated as individual policies.