KRS 304.6-100: Loss reserves -- Casualty insurance.

(1) As to casualty insurance transacted by it, each insurer shall maintain at all times

reserves in an amount estimated in the aggregate to provide for payment of all

losses and claims incurred, whether reported or unreported, which are unpaid and

for which th e insurer may be liable, and to provide for the expenses of adjustment

or settlement of losses and claims. The reserves shall be computed in accordance

with regulations from time to time made by the commissioner, after due notice and

hearing, upon reasonab le consideration of the ascertained experience and the

character of such kind of business for the purpose of adequately protecting the

insured and the solvency of the insurer.

(2) Whenever the loss and loss expense experience of the insurer show that reser ves,

calculated in accordance with such regulations, are inadequate, the commissioner

may require the insurer to maintain additional reserves.

(3) The commissioner may, by regulation, prescribe the manner and form of reporting

pertinent information concerning the reserves provided for in this section.