KRS 304.48-170: Statement of financial condition for preceding fiscal year -- Quarterly

statements and acknowledgments -- Authority for administrative regulations --

Member's right to statement upon request.

(1) All liability self -insurance groups shall file with the commissioner a statement of

financial condition audited by an independent certified public accountant on or

before one hundred and twenty (120) days from the end of the group's fiscal year for

the immediately preceding fiscal year. The financial statem ent shall be in a form

approved by the commissioner and shall include:

(a) Actuarially appropriate reserves for:

1. Known claims and expenses associated therewith.

2. Claims incurred but not reported and any expenses associated therewith.

3. Unearned contributions and assessments.

4. Bad debts, which reserves shall be known as liabilities.

(b) An actuarial opinion by a qualified actuary and a supporting reserve study

regarding reserves for known claims and expenses associated therewith. The

reserve study sh all include documentation sufficient for another actuary

practicing in the same field to evaluate the work. The documentation shall

describe clearly the sources of data, material assumptions, and methods.

(2) Within forty -five (45) days from the end of eac h fiscal quarter, all liability self -

insurance groups shall file with the commissioner a statement of financial condition

along with an acknowledgment signed by the board of trustees or its authorized

agent indicating that the statement has been presented to the board and any other

relevant financial information requested by the commissioner, including a balance

sheet and income and cash flow statement, on a form prescribed by the

commissioner.

(3) No person shall make a deceptive statement or fail to corre ct a misstatement in

connection with the solicitation of membership of a group.

(4) The financial statements required by this section shall be completed in accordance

with administrative regulations promulgated by the commissioner.

(5) Upon the request of a group member, a liability self -insurance group shall make

available the statement of financial condition required by subsection (1) of this

section.