{"data":{"id":"us-ky/krs-304.36-130","jurisdiction":"us-ky","citation":"KRS 304.36-130","heading":"Prevention of insolvencies.","body":"To aid in the detection and prevention of insurer insolvencies:\n(1) It shall be the duty of the board of directors, upon majority vote, to notify the\ncommissioner of any information indicating any member insurer may be insolvent\nor in a financial condition hazardous to the policyholders or the public;\n(2) The board of directors may, upon majority vote, request that the commissioner order\nan examination of any member insurer which the board in good faith believes may\nbe in a financial condition hazardous to the policyholders or the public. Within\nthirty (30) days of the receipt of such request, the commissioner shall begin such\nexamination. The examination may be conducted as a National Association of\nInsurance Commissioners examination or may be conducted by  such persons as the\ncommissioner designates. The cost of such examination shall be paid by the\nassociation and the examination report shall be treated as are other examination\nreports. In no event shall such examination report be released to the board of\ndirectors prior to its release to the public, but this shall not preclude the\ncommissioner from complying with subsection (3) of this section. The\ncommissioner shall notify the board of directors when the examination is\ncompleted. The request for an examin ation shall be kept on file by the\ncommissioner but it shall not be open to public inspection prior to the release of the\nexamination report to the public;\n(3) It shall be the duty of the commissioner to report to the board of directors when the\ncommissioner has reasonable cause to believe that any member insurer examined or\nbeing examined at the request of the board of directors may be insolvent or in a\nfinancial condition hazardous to the policyholders or the public;\n(4) The board of directors may, upon majority vote, make reports and recommendations\nto the commissioner upon any matter germane to the solvency, liquidation,\nrehabilitation or conservation of any member insurer. Such reports and\nrecommendations shall not be considered public documents;\n(5) The board of directors may, upon majority vote, make recommendations to the\ncommissioner for the detection and prevention of insurer insolvencies; and\n(6) The board of directors shall, at the conclusion of any insurer insolvency in which\nthe association was obligated to pay covered claims, prepare a report on the history\nand causes of such insolvency, based on the information available to the\nassociation, and submit such report to the commissioner.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29925","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:55Z","sha256":"36fca82bf4b6be50bc096512a217c148a456740de6b6a1014850a87b1e92c70d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.36-120","next":"us-ky/krs-304.36-140"},"notice":"GroundRules: Original legal text. Not legal advice."}