KRS 304.44-050: Reinsurance agreement.

(1) All insurers writing property insurance covering structures in this state shall enter

into a reinsurance agreement with the administrator in which each insurer agrees to

cede to the administrator one hundred percent (100%), up to the maximum total

insured value established under KRS 304.44 -030(1), of any subsidence insurance

coverage issued and, in consideration of the ceding commission retained by the

insurer, agrees to undertake adjustment of losses and payment of taxes and to

absorb all other expenses of the insurer necessary for sale of policies and

administration of the mine subsidence insurance program.

(2) (a) The administrator shall:

1. Agree to reimburse the insurer from the fund for all amounts paid

policyholders for claims resulting from subsidence; and

2. Pay from the fund all costs of administration incurred by the

administrator.

(b) An insurer shall not be required to pay any claim for any loss insured under

this subtitle except to the extent that the amount available in the mine

subsidence insu rance fund is sufficient to reimburse the insurer for such

claim.

(3) Claims made under the provisions of the subtitle shall not be deemed to constitute a

debt, liability, or obligation of the Commonwealth or any political subdivision

thereof or a pledge o f the faith and credit of the Commonwealth or any political

subdivision except to the extent the fund has accumulated reserves from premiums,

state or federal grants, investment income, or state appropriations.