KRS 304.48-220: Suspension or revocation of certificate of filing.

(1) The commissioner may suspend or revoke any certificate of filing issued to a

liability self-insurance group under this subtitle if the commissioner finds that any

of the following conditions exist:

(a) The liability self-insurance group is operating significantly in contravention of

its basic organizational document or in a manner contrary to that described in

and reasonably inferred from any other information submitted under this

subtitle, unless amendments to the submissions have been filed with and

approved by the commissioner;

(b) The liability self-insurance group is no longer financially responsible and may

reasonably be expected to be unable to meet its obligations to participants or

prospective participants;

(c) The liability self-insurance group, or any person at its direction, has advertised

or merchandised its services in an untrue, misrepresentative, misleading,

deceptive, or unfair manner;

(d) The liability self -insurance group has engaged in any unfair or deceptive

practices under its certificate of filing; or

(e) The liability self -insurance group has failed to correct a violation of this

subtitle or the administrative regulations adopted thereunder, within a

reasonable time period established by the commissioner in administrative

regulations.

(2) A certificate of filing shall be suspended or revoked only after compliance with the

hearing procedure set forth in KRS 304.2-310 to 304.2-370.

(3) When a certificate of filing of a liability self -insurance group is suspended, the

group shall not, durin g the period of suspension, enroll any new participants and

shall not engage in any advertising or solicitation.

(4) If the certificate of filing of a liability self -insurance group is revoked, the group

shall proceed, immediately following the effective date of the order of revocation, to

wind up its affairs, and shall conduct no further business except as may be essential

to the orderly conclusion of the affairs of the organization. It shall engage in no

further advertising or solicitation. The commission er may, by written order, prevent

further operation of the group as he or she may find to be in the best interest of the

participants, to the end that the participants will be afforded the greatest practical

opportunity to obtain liability coverage elsewhe re. If the commissioner permits

further operation, the liability self -insurance group shall continue to collect the

contributions and assessments required of participants.