{"data":{"id":"us-ky/krs-164.892","jurisdiction":"us-ky","citation":"KRS 164.892","heading":"Basic coverage compensation fund -- Management and use -- Approval of","body":"settlements -- Disbursement of funds -- Annual contributions -- Investigation\nand certification of claims.\n(1) The board of trustees of the university may, at its election, establis h a basic\ncoverage compensation fund for the benefit and protection from liability of itself\nand its agents. Promptly after the board of trustees of said university has elected to\nestablish a basic coverage compensation fund, the university shall pay to th e State\nTreasurer the sum of three hundred fifty thousand dollars ($350,000) in the manner\nand within the time specified in subsection (3) of this section.\n(2) Upon receipt of the initial payment of eighty -seven thousand five hundred dollars\n($87,500), the State Treasurer shall create a separate account to be designated as the\n\"Basic Coverage Compensation Fund, University of Louisville\" and there shall be\ncredited to said fund the initial payment of eighty -seven thousand five hundred\ndollars ($87,500), all income thereafter earned from the investment of said fund and\nall contributions thereafter made by the university to said fund. Unexpended and\nunencumbered balances in any fund created hereunder shall be carried forward and\nbe available for expenditure in succeeding fiscal years notwithstanding the\nprovisions of KRS 45.229 or any other provision of the Kentucky Revised Statutes.\nNo portion of said fund shall ever lapse to the general fund and income earned from\nthe investment of funds standing to the credit  of said account shall accrue and be\ncredited thereto, notwithstanding the provisions of KRS 42.500 or any other\nprovision of the Kentucky Revised Statutes. Upon termination of said fund for any\nreason, the balance therein shall revert to the university.\n(3) The university shall make an initial payment of eighty -seven thousand five hundred\ndollars ($87,500) upon action by its board of trustees as described in KRS 164.895.\nAnnual payments of eighty -seven thousand five hundred dollars ($87,500) shall be\nmade thereafter until the university has paid a total of three hundred fifty thousand\ndollars ($350,000) into the \"basic coverage compensation fund, University of\nLouisville,\" except that when the university commences the operation of a teaching\nhospital, the difference between the total of all annual payments made into the basic\ncoverage compensation fund and the sum of three hundred fifty thousand dollars\n($350,000) shall become due and payable.\n(4) The funds held in any fund created under KRS 164.890 to 164.8 95 shall be\nexpended solely in payment of claims and judgments for liability arising in favor of\nany patient from treatment performed or furnished, or treatment that should have\nbeen performed or furnished by the university or its agents. The liabilities w hich\nsaid fund shall be created to discharge are all liabilities from acts or omissions to act\nwhich may have occurred since July 1, 1976, and which may occur in the future and\nwhich no entity other than the university and its agents is or will be obligate d either\nby law or contract to pay and discharge.\n(5) No settlement shall be made of any claim for personal injury or death to any\nclaimant arising out of the furnishing or failure to furnish medical care by the\nuniversity and its agents, until and unless the board of trustees of the university, or\nits duly designated agent or body has first approved of such settlement. The board\nof trustees of the university shall also have the right to determine whether or not an\nappeal shall be taken from any judgment rendered against it or its agents, when such\nclaim is founded upon or arises out of the furnishing or failure to furnish medical\ncare. Provided, however, that if the payment of a judgment would involve\nexpenditures from appropriations of general funds of the  Commonwealth then such\npayment must also be approved by the secretary, or his delegate.\n(6) Funds held in any account created hereunder may be disbursed by the secretary only\nupon the written certification of the university, or its duly designated agent, of the\namount to be disbursed and the name of the person or persons to whom such funds\nshall be paid.\n(7) In addition to the payments to said fund required to be made in subsection (3) of\nthis section, annual contributions to said fund shall be made by the  university in an\namount which will be not less than one hundred fifty percent (150%) of the average\namounts actually paid in each year on medical malpractice claims for the five (5)\nyears next preceding the making of the annual contribution. Provided, however, that\nif the university and the secretary shall at any time in the future mutually determine,\nbased on sound actuarial principles, that an annual contribution in a lesser amount\nwill not impair the adequacy of the fund to satisfy existing and potentia l health care\nmalpractice claims for a period of one (1) year, then an annual contribution in such\nlesser amount as may be determined may be made.\n(8) The university shall be solely responsible for the investigation and servicing of all\nclaims made against  it arising out of medical malpractice and all costs, expenses,\nand fees incurred in the investigation, servicing and defense of all such claims shall\nbe borne and paid by the university.\n(9) Claims and judgments certified to be paid by the university shal l be paid in the\norder received by the secretary. If the basic coverage compensation fund created by\ncontribution from the university shall at any time fail to have sufficient funds to pay\nall such judgments, then they shall be paid out of the excess cover age fund upon\ncertification by the secretary. Said excess coverage fund shall be expended only\nupon exhaustion of the basic coverage compensation fund and any liability\ninsurance from any source whatsoever.","path":["KRS Chapter 164"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=4476","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:18Z","sha256":"f8c857a7cbab74027e3fe8859c5407d5692310aa3e73e4927fa785eefb3760f6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-164.891","next":"us-ky/krs-164.893"},"notice":"GroundRules: Original legal text. Not legal advice."}