{"data":{"id":"us-ky/krs-304.33-010","jurisdiction":"us-ky","citation":"KRS 304.33-010","heading":"Title, construction, and purpose.","body":"(1) Short title. This subtitle may be cited as the \"Insurers Rehabilitation and Liquidation\nLaw.\"\n(2) Construction. No limitation of powers. This subtitle shall not be interpreted to limit\nthe powers granted the commissioner by other provisions of the law.\n(3) Liberal construction. This subtitle shall be liberally construed to effect the purpose\nstated in subsection (4) of this section.\n(4) Purpose. The purpose of this subtitle is the protection of the interests of insureds,\ncreditors, and the public generally,  with minimum interference with the normal\nprerogative of proprietors, through:\n(a) Early detection of any potentially dangerous condition in an insurer, and\nprompt application of appropriate corrective measures, neither unduly harsh\nnor subject to the kin d of publicity that would needlessly damage or destroy\nthe insurer;\n(b) Improved methods for rehabilitating insurers, by enlisting the advice and\nmanagement expertise of the insurance industry;\n(c) Enhanced efficiency and economy of liquidation, through the consolidation of\nmatters relating to the liquidation under the supervision of a single court so as\nto avoid divergent rulings by a multiplicity of judicial tribunals and through\nclarification and specification of the law, to minimize legal uncertainty an d\nlitigation;\n(d) Equitable apportionment of any unavoidable loss;\n(e) Lessening the problems of interstate rehabilitation and liquidation by\nfacilitating cooperation between states in the liquidation process, and by\nextension of the scope of personal juri sdiction over debtors of the insurer\noutside this state;\n(f) Regulation of the insurance business by the impact of the law relating to\ndelinquency procedures and substantive rules on the entire insurance business;\nand\n(g) Provision for a comprehensive sche me for the supervision, rehabilitation, and\nliquidation of insurance companies and those subject to this subtitle as part of\nthe regulation of the business of insurance, insurance industry, and insurers in\nthis state. Proceedings in cases of insurer insolv ency and delinquency shall be\ndeemed an integral aspect of the business of insurance and are of vital public\ninterest and concern.\n(5) All persons who voluntarily transact business with an insurer which is subsequently\nthe subject of a delinquency proceedi ng under this subtitle shall be conclusively\npresumed to have transacted business with the intent that the provisions of this\nsubtitle would control if there is any delinquency proceeding in this state.\n(6) If there is a delinquency proceeding under this s ubtitle, the provisions of this\nsubtitle shall govern those proceedings, and all conflicting contractual provisions\ncontained in any contract between the insurer which is subject to the delinquency\nproceeding and any third party shall be deemed subordinate d to the provisions of\nthis subtitle. However, notwithstanding the foregoing, in any delinquency\nproceeding commenced against an insurer after July 15, 1996, nothing in this\nsubtitle shall be construed to subordinate or restrict the rights of parties to su bmit\ntheir disputes to arbitration pursuant to a contractual arbitration clause contained in\na reinsurance agreement.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29815","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:54Z","sha256":"517995210d83051878f777ded69e1e16de35ad19b5ab0defb70b53bfaad70c5b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.32-330","next":"us-ky/krs-304.33-020"},"notice":"GroundRules: Original legal text. Not legal advice."}