KRS 304.17A-828: Membership -- Liability on termination of membership, insolvency, or

bankruptcy.

(1) An employer joining a self -insured employer-organized association group after the

group has been issued a certificate of filing shall submit an application for

membership to the board of trustees or its administrator. Membership shall take

effect no earlier than each member's date of application. The application for

membership and its approval shall be maintained as permanent records of the board

of trustees.

(2) Individual members of a self-insured employer-organized association group shall be

subject to cancellation by the group pursuant to the governance documents of the

group. In addition, individual group members may elect to terminate their

participation in the group.

(3) A self-insured employer-organized association shall pay all health liabilities which

are covered under the terms, conditions, and exclusions of the group's evidence of

coverage which each member elects during its period of membership. A member

who elects to terminate its membership or is canceled by a group remains liable for

contribution obligations which were incurred during the canceled or terminated

group members' period of membership. A group member is not relieved of its health

liabilities incurred during its period of membership in a self -insured employer -

organized association group except through payment of its contribution obligations

to the group.

(4) The insolvency or bankruptcy of a group member does not relieve the self -insured

employer-organized association group of liability for the payment of health

liabilities which are covered under the terms, conditions, and exclusions of the

group's evidence of coverage and incurred during the insolvent or bankrupt group

member's period of membership.