KRS 304.17-220: Insurance with other insurers -- Expense incurred benefits -- "Other

valid coverage."

(1) There may be a provision as follows:

"Insurance with Other Insurers: If there be other valid coverage, not with this

insurer, providing benefits for the same loss on a provision of service basis or on an

expense incurred basis and of which this insurer has not been given written notice

prior to the occurrence or commencement of loss, the only liability under any

expense incurred coverage of this policy shall b e for such proportion of the loss as

the amount which would otherwise have been payable hereunder plus the total of

the like amounts under all such other valid coverages for the same loss of which this

insurer had notice bears to the total like amounts und er all valid coverages for such

loss, and for the return of such portion of the premiums paid as shall exceed the pro

rata portion for the amount so determined. For the purpose of applying this

provision when other coverage is on a provision of service bas is, the like amount of

such other coverage shall be taken as the amount which the services rendered would

have cost in the absence of such coverage."

(2) If the foregoing policy provision is included in a policy which also contains the

policy provision set out in subsection (1) of KRS 304.17 -230, there shall be added

to the caption of the foregoing provision the phrase "... Expense Incurred Benefits."

(3) The insurer may, at its option, include in the provision provided in subsection (1) of

this section, a definition of "other valid coverage" approved as to form by the

commissioner, which definition shall be limited in subject matter to coverage

provided by organizations subject to regulation by insurance law or by insurance

authorities of this or any other state of the United States or any province of Canada,

and by hospital or medical service organizations, and to any other coverage the

inclusion of which may be approved by the commissioner. In the absence of such

definition such term shall not include grou p insurance, automobile medical

payments insurance, or coverage provided by hospital or medical service

organizations or by union welfare plans or employer or employee benefit

organizations. For the purpose of applying such policy provision no third -party

liability coverage amount of benefit provided for such insured pursuant to any

compulsory benefit statute, including any workers' compensation or employer's

liability statute, whether provided by a governmental agency or otherwise, shall in

all cases be de emed to be "other valid coverage" of which the insurer has had

notice. In applying such policy provision no third -party liability coverage shall be

included as "other valid coverage."