KRS 304.50-035: Certificate of filing of self-insured group -- Conditions for issuance.

Certification as a workers' compensation self -insured group shall be granted only if the

commissioner finds that the applicant has complied with the provisions of this subtitle,

paid the application fee, and met the following conditions:

(1) All persons responsible for the conduct of the affairs of the workers' compensation

self-insured group are financially stable and experienced in the administration of a

workers' compensation self-insured group;

(2) The workers' compensation self -insured group is financi ally responsible and has

demonstrated the ability to meet all of its obligations to participants and prospective

participants and injured workers as required in KRS Chapter 342. In making this

determination, the commissioner may consider:

(a) The adequacy of working capital; and

(b) The applicant's compliance with all requirements of this subtitle, including but

not limited to:

1. The adequacy of the funding mechanisms;

2. The existence and adequacy of appropriate excess insurance;

3. The participating members' financial strength;

4. The stability of the membership;

5. The risks of the industry;

6. The experience of management and all persons responsible for the

conduct of the affairs of the workers' compensation self -insured group;

and

7. An initial and ong oing minimum surplus funds requirement of not less

than one million dollars ($1,000,000), except for a workers'

compensation self insured group currently operating under a plan

approved by the commissioner pursuant to KRS 304.50 -135 or a

remedial action pl an approved by the predecessor regulatory agency

prior to August 3, 2004.