KRS 304.48-160: Officers, directors, or employees not to have interest in administrator --

Exception.

(1) Except as provided in subsection (2) of this section, no service company or its

employees, officers, or directors shall be an employee, officer, or director o f, or

have either a direct or indirect interest in, an administrator. No administrator or its

employees, officers, or directors shall be an employee, officer, or director of, or

have either a direct or indirect financial interest in, a service company.

(2) Liability self -insurance groups formed by public entities may create public

administrator and service companies to administer or service the group's self -

insurance program. These administrator and service companies may have

employees, directors, or office rs in common if the board of directors for the public

liability self-insurance group has direct authority over these public companies and

the employees of the companies are public employees.