{"data":{"id":"us-ky/krs-304.35-030","jurisdiction":"us-ky","citation":"KRS 304.35-030","heading":"Requirements of plan and authority of association.","body":"(1) The \"FAIR\" plan and articles of association shall make provision for a reinsurance\nassociation having authority on behalf of its members as their agent to cause to be\nissued property and casualty insurance policies, to reinsure in whole or in part any\nsuch policies, and to cede any such reinsurance. The plan and articles of association\nshall provide, among other things, for the lines of business to be written, policy\nforms to be used, perils to be covered, geographical area of coverage, compensation\nand commissions, assessments of members (which assessments annually shall not\nexceed one percent (1%) of any such member's net direct premium written on a\nvoluntary basis in this state during the preceding year), participation in the writings,\nexpenses, income, and losses in the proportion each member's property and casualty\npremiums written bear to the aggregate property and casualty premiums voluntarily\nwritten by all members, the administration of the plan and association, and any\nother matter necessary or conv enient for the purpose of assuring fair access to\ninsurance requirements.\n(2) If the commissioner, in the fulfillment of the duties imposed on him or her by KRS\n304.13-041, determines that a reasonable degree of competition does not exist in the\nmarket for  any lines of insurance, within the definitions of KRS 304.5 -050\n(property insurance) and KRS 304.5-070 (casualty insurance), or either of them, and\nissues an order to that effect, the commissioner shall order the governing committee\nto promptly amend the plan to include such line or lines of business unless, in the\ncommissioner's opinion, an effective residual market mechanism as defined in KRS\n304.13-011(8) is already then functioning to provide basic insurance requirements\nto worthy applicants for reasonable amounts of coverage under such line or lines of\ninsurance with insurers licensed to do business in this state. For accounting and\nrate-making purposes, the commissioner may require the plan to provide for the\nestablishment and maintenance of separate accounts for any line included in the\nplan pursuant to this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29902","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:55Z","sha256":"3815fa4cc084c92519ea637687bc0ba2e1598cf88030914b730ba2228963fd4a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.35-020","next":"us-ky/krs-304.35-040"},"notice":"GroundRules: Original legal text. Not legal advice."}