{"data":{"id":"us-ky/krs-164.941","jurisdiction":"us-ky","citation":"KRS 164.941","heading":"Basic coverage compensation fund -- Management and use -- Settlement of","body":"claims -- Contributions to funds.\n(1) The board of trustees of the university may, at its election, establish a basic\ncoverage compensation fund for the benefit and protection fro m 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 the State\nTreasurer the sum of three hundred fifty thousand dollars ($350,000).\n(2) Upon receipt of said payment of three hundred fifty thousand dollars ($350,000) the\nState Treasurer shall create a separate account to be designated as the \"Basic\nCoverage Compensation Fund, University of Kentucky\" and there shall be credited\nto said fund the initial payment of three hundred fifty thousand dollars ($350,000),\nall income thereafter earned from the investment of said fund, and all contributions\nthereafter made by the university. Unexpended and unencumbered balances in any\nfund created hereunder shall be carried forward and be available for expenditure in\nsucceeding fiscal years notwithstanding the provisions of KRS 45.229 or any other\nprovision of the Kentucky Revised Statutes. No portion of said fund shall ever lapse\nto the general fund and income earned from the investment of funds standing to the\ncredit of said account shall accrue and be credited thereto, notwithstanding the\nprovisions of KRS 42.500 or any other provision of the Kentucky Revised Statutes.\nUpon termination of said fund for any reason, the balance therein shall revert to the\nuniversity.\n(3) The funds held in any fund created under KRS 164.939 to 164.944 shall be\nexpended solely in payment of claims for liability arising in favor of any patient\nfrom treatment perform ed or furnished, or treatment that should have been\nperformed or furnished by the university or its agents. The liabilities which said\nfund shall be created to discharge are all liabilities from acts or omissions to act\nwhich may have occurred since July 1 , 1975 and which may occur in the future\nwhich no entity other than the university and its agents is or will be obligated either\nby law or contract to pay and discharge.\n(4) 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 delegated agent or body has first approved of such settlement. The board of\ntrustees 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. Prov ided, however, that if the payment of a judgment would involve\nexpenditures from appropriations of general funds of the Commonwealth under the\nprovisions of subsection (8) of this section then any payment from said fund must\nalso be approved by the secretary, or his delegate.\n(5) Funds held in an 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 t o whom such funds\nshall be paid.\n(6) Annual contributions to said fund shall be made by the university in an amount\nwhich 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. In the event the\nuniversity terminates its commercial excess insurance coverage then said annual\ncontributions shall be in the amount of two hundred fifty thousand dollars\n($250,000) with the first contribution being due and payable within twelve (12)\nmonths next following the month in which such insurance is terminated. Provided,\nhowever, that if the university and the secretary shall at any time in the future, based\nupon accepted actuarial principles, mutually determine that an annual contribution\nin a lesser amount will not impair the adequacy of the fund to satisfy existing and\npotential health care malpractice claims for a period of one year, then an annual\ncontribution in such lesser amount as may be determined may be made.\n(7) 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 investiga tion, servicing and defense of all such claims shall\nbe borne and paid by the university.\n(8) Claims or judgments certified to be paid by the university shall be paid in the order\nreceived by the secretary. If the basic coverage compensation fund created\nhereunder shall at any time fail to have sufficient funds to pay all judgments, then\nthey shall be paid out of the excess coverage fund upon certification of the\nobligation by the secretary and the university. Said excess fund shall be expended\nonly upon ex haustion of the basic coverage compensation fund and any insurance\nfrom any source whatsoever.","path":["KRS Chapter 164"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=4496","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:18Z","sha256":"258decd99ac117edf20442201338ea1f756795e62559cb5191632763d1b3e697","source_id":"us-ky","stale":false,"prev":"us-ky/krs-164.940","next":"us-ky/krs-164.942"},"notice":"GroundRules: Original legal text. Not legal advice."}