KRS 304.17A-832: Statement of financial condition -- Authority for administrative

regulations.

(1) All self -insured employer -organized association groups shall file with the

commissioner a statement of financial condition audited by an independent certified

public accountant on or before one hundred twenty (120) days from the end of the

group's fiscal year for the immediately preceding fiscal year. The financial statement

shall be in a form approved by the commissioner and shall include:

(a) Actuarially appropriate reserves for:

1. Known claims and expenses associated therewith.

2. Claims incurred but not reported and any expenses associated therewith.

3. Unearned contributions and assessments.

4. Bad debts, which reserves shall be known as liabilities.

(b) An actua rial opinion by a qualified actuary and a supporting reserve study

regarding reserves for known claims and expenses associated therewith. The

reserve study shall include documentation sufficient for another actuary

practicing in the same field to evaluate the work. The documentation shall

describe clearly the sources of data, material assumptions, and methods.

(2) No person shall make a deceptive statement or fail to correct a misstatement in

connection with the solicitation of membership of a group.

(3) The financial statements required by this section shall be completed in accordance

with administrative regulations promulgated by the commissioner.