KRS 304.41-030: Joint Underwriting Association -- Categories covered -- Termination --

Powers of association.

(1) A temporary Joint Underwriting Association is created, consisting of all insurers

authorized to write and engage in writing in the Commonwealth on a d irect basis

the following lines of insurance, as reported in the companies' annual statements:

(a) Workers' compensation;

(b) Liability other than auto;

(c) Private passenger auto liability;

(d) Commercial auto liability; and

(e) The liability portion of commercial multi-peril policies.

Every such insurer shall remain a member of the Joint Underwriting Association as

a condition of its authority to continue to transact such kinds of insurance in the

Commonwealth.

(2) The implementation of the operation of the Joint Underwriting Association shall

become effective upon the order of the commissioner. The commissioner shall not

order the association to commence underwriting operations until the commissioner,

after due hearing and investigation, has determined t hat legal professional liability

insurance cannot be made available in the voluntary market. The Joint Underwriting

Association shall remain in effect for a period of no longer than two and one -half (2

1/2) years from the date that it commences underwriting operations.

This subtitle shall not preclude any attorney at law from procuring legal

professional liability insurance from the voluntary market.

If the commissioner determines at any time that legal professional liability

insurance is readily availabl e in the voluntary market, the association shall thereby

cease its underwriting operations.

(3) The association shall, pursuant to the provisions of this subtitle and the plan of

operation with respect to legal professional liability insurance, have the po wer on

behalf of its members:

(a) To issue, or to cause to be issued, policies of insurance to applicants,

including incidental coverages and subject to limitations as specified in the

plan of operation, but not to exceed five hundred thousand dollars ($50 0,000)

for each claimant under one (1) policy and one million dollars ($1,000,000)

for all claimants under one (1) policy in any one (1) year;

(b) To underwrite such insurance and to adjust and pay losses with respect

thereto, or to appoint service companies to perform those functions;

(c) To assume reinsurance from its members;

(d) To cede reinsurance; and

(e) To negotiate and obtain in the voluntary market legal professional liability

insurance with limits in excess of the foregoing limits for any attorney -at-law

to whom the association has issued or caused to be issued a policy of legal

professional liability insurance.