KRS 304.48-240: Prohibited activities.

(1) No person shall make any deceptive statement or omit material facts in connection

with solicitation for membership in a liability self-insurance group.

(2) Liability self-insurance groups shall not engage in unfair claims settlement practices

and shall:

(a) Respond to claimant inquiries within fifteen (15) working days.

(b) Respond to Department of Insurance inquiries concerning claims within

fifteen (15) working days.

(c) Complete the investigation of losses within thirty (30) days from the date the

group has notice of a loss. An additional thirty (30) day period may be taken if

reasonably necessary and upon written notice to the claimant.

(d) Not continue negotiations for settlement of a claim directly with a claimant

who is neither an attorney nor represe nted by an attorney until the claimant's

rights may be affected by a statute of limitations, a policy, or contract time

limit without giving the claimant written notice at least sixty (60) days before

the date on which the time limit shall expire and affect the claimant's rights.

(e) Not commit any other unfair or deceptive act or practice, as described in

Subtitle 12 of this chapter, relating to claim settlement.

(3) Liability self -insurance groups shall not commit unfair or deceptive acts or

practices, as described in Subtitle 12 of this chapter, under its certificate of filing

from the commissioner.