KRS 304.38-190: Powers of insurers.

(1) Any domestic stock and mutual insurance company licensed in this state, or any

nonprofit hospital, medical -surgical, dental, and health service corporation

authorized to do business in this state, may either directly or indirectly through a

subsidiary, org anize and operate a health maintenance organization under the

provisions of this subtitle.

(2) Notwithstanding any provision of KRS Chapter 304, Subtitles 24 and 32 to the

contrary, any domestic or stock insurance company licensed in this state or any

nonprofit hospital, medical -surgical, dental, and health service corporation

authorized to do business in this state, may contract with a health maintenance

organization organized under this subtitle to provide protection against the cost of

care provided through health maintenance organizations and to provide coverage in

the event of the failure of the health maintenance organization to meet its

obligations.