KRS 304.37-055: Supervisory colleges for certain domestic insurers -- Powers of

commission.

(1) With respect to any insurer registered pursuant to KRS 304.37 -020, and in

accordance with subsection (3) of this section, the commissioner shall have the

authority to participate in a supervisory college for any domestic insurer that is part

of an insurance holding company system with international operations in order to

determine compliance by the insurer with this subtitle. The powers of the

commissioner with respect to supervisory colleges include, but are not limited to:

(a) Initiating the establishment of a supervisory college;

(b) Clarifying the membership and participation of other supervisors in the

supervisory college;

(c) Clarifying the functions of the superv isory college and the role of other

regulators, including the establishment of a groupwide supervisor;

(d) Coordinating the ongoing activities of the supervisory college, including

planning meetings, supervising activities, and establishing processes for

information sharing; and

(e) Establishing a crisis management plan.

(2) Each registered insurer subject to this section shall be liable for and shall pay the

reasonable expenses of the commissioner's participation in a supervisory college in

accordance with subsection (3) of this section, including reasonable travel expenses.

For purposes of this section, a supervisory college may be convened as either a

temporary or permanent forum for communication and cooperation between the

regulators charged with the su pervision of the insurer or its affiliates, and the

commissioner may establish a regular assessment to the insurer for the payment of

these expenses.

(3) In order to assess the business strategy, financial position, legal and regulatory

position, risk exposure, risk management, and governance processes, and as part of

the examination of individual insurers in accordance with KRS 304.37 -040, the

commissioner may participate in a supervisory college with other regulators charged

with supervision of the insure r or its affiliates, including other state, federal, and

international regulatory agencies. The commissioner may enter into agreements in

accordance with KRS 304.37 -050 providing the basis for cooperation between the

commissioner and the other regulatory a gencies, and the activities of the

supervisory college. Nothing in this section shall delegate to the supervisory college

the authority of the commissioner to regulate or supervise the insurer or its affiliates

within its jurisdiction.