KRS 304.44-100: Powers of administrator.

(1) Except in the case of fraud by an insurer, the administrator does not have any right

of recourse against the insurer and the insurer may settle losses in the customary

manner; and

(2) The administrator may require an insurer to attempt recovery from a pol icyholder

for the amounts paid to such policyholder if, in the judgment of the administrator

the policyholder was not entitled to the amounts paid because of fraud or violation

of the policy conditions. The costs of such recovery attempt shall be borne eq ually

by the insurer and the administrator.