KRS 304.49-130: Prohibition of contributions made and benefits received -- Exceptions.

(1) No captive insurer, including a captive insurer organized as a reciprocal insurer

under KRS 304.49 -010 to 304.49 -230, shall be permitted to join or contribute

financially to any plan, pool, association, or guaranty or insolvency fund in

Kentucky, nor s hall any such captive insurer, or its insured, or its parent or any

affiliated company, or any member organization of its consortium, or in the case of

a captive insurer organized as a reciprocal insurer, any subscriber thereof, receive

any benefit from any such plan, pool, association, or guaranty or insolvency fund for

claims arising out of the operations of such captive insurer.

(2) Subsection (1) of this section shall not prohibit captive insurers from entering into

reinsurance or pooling transactions i n the normal course of business, in accordance

with KRS 304.49-110.