KRS 304.9-376: Claims paid on behalf of insurer -- Compensation of administrator.

(1) All claims paid by the administrator from funds collected on behalf of the insurer

shall be paid only on drafts of and as authorized by such insurer.

(2) With respect to any contracts where an administrator adjusts or settles claims, the

compensation to th e administrator with regard to such policies shall in no way be

contingent on claim experience. This subsection shall not prevent the compensation

of an administrator from being based on premiums or charges collected or number

of claims paid or processed.