{"data":{"id":"us-ky/krs-304.39-290","jurisdiction":"us-ky","citation":"KRS 304.39-290","heading":"Kentucky Insurance Arbitration Association -- Creation -- Membership","body":"-- Powers -- Duties.\n(1) There is created a nonprofit unincorporated legal entity to be known as the\nKentucky Insurance Arbitration Association to provide a mechanism for the\nreimbursement, among reparation obligors of losses paid as basic or added\nreparation benefits, based solely on the law of torts without regard to subsections\n(1), (2), and (3) of KRS 304.39-060.\n(2) All basic reparation obligors shall be and remain members of the association as a\ncondition of their authority to transact business in this Commonwealth.\n(3) The association shall perform its functions under a plan of operation established and\napproved under subsection (5) and shall exercise its powers through a boa rd of\ndirectors established under subsection (4) hereof.\n(4) The board of directors of the association shall consist of not less than five (5) nor\nmore than ten (10) persons serving terms as established in the plan of operation.\nThey shall be selected by m ember obligors subject to the approval of the\ncommissioner. If no members have been selected and approved prior to July 1,\n1974, the commissioner shall appoint the initial members of the board. In approving\nselections to the board, the commissioner shall c onsider, among other things,\nwhether all member obligors are fairly represented.\nEach member of the board shall designate qualified experienced claimspersons from\nthe member's company, who upon approval by the commissioner, may serve as his\nor her alternates for the purpose of claims arbitration.\n(5) The association shall submit to the commissioner a plan of operation and any\namendments thereto necessary, or suitable to assure the fair, reasonable, and\nequitable administration of the association. The plan shall become effective upon\napproval in writing by the commissioner:\n(a) All reparation obligors shall comply with the provisions of the plan of\noperation;\n(b) The plan of operation shall:\n1. Establish procedures whereby all the powers and duties of the\nassociation will be performed;\n2. Establish minimum requirements for the initial submission of a case for\nreimbursement or arbitration;\n3. Establish minimum requirements beneath which reimbursements shall\nnot be made in order that there be fair allocation of significant losses and\nthe elimination of unnecessary costs in the reimbursement mechanism;\n4. Encourage voluntary reimbursement procedures between reparation\nobligors so that resort to arbitration shall be as infrequent as possible;\n5. Recognize that fair allocation of loss between commercial and\nnoncommercial motor vehicles may require different minimum\nrequirements than when the loss is between two (2) or more\nnoncommercial vehicles;\n6. Establish regular places and times for meetings;\n7. Establish procedures for records to be maintained on all cases presented\nfor arbitration and dispositions thereof;\n8. Establish procedures for compensation to reparation obligors for travel\nrelated expense and the fair value of the time devoted by their employees\nas a director or alternate in performance of duties for the association;\n9. Establish procedures for adequately and equitably financing the cost of\nthe association among members; and\n10. Contain additional provisions necessary or proper for exec ution of the\npowers and duties of the association.\n(6) The association shall be subject to examination and regulation by the commissioner:\n(a) The board of directors shall submit to the commissioner, not later than March\n30 of each year, a report on its activities for the preceding calendar year;\n(b) The board of directors shall promptly notify the commissioner whenever it\nappears that any member insurer has failed or refused to comply with an\narbitration decision or has shown a protracted tendency to decline a significant\nnumber of meritorious claims presented to it prior to initiation of arbitration\nproceedings.\n(7) The association shall be exempt from payment of all fees, licenses, and taxes levied\nby this Commonwealth or any of its subdivisions except ta xes on real or personal\nproperty.\n(8) There shall be no liability on the part of and no cause of action of any nature shall\narise against any member insurer, the association or its agents or employees, the\nboard of directors, or the commissioner or his or her representative for any action\ntaken by them in the performance of their powers and duties under this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30060","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:57Z","sha256":"9a29a0cb20513763bb8e9dc1779657cdfef9c717a4466c1651276fe259323863","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.39-280","next":"us-ky/krs-304.39-300"},"notice":"GroundRules: Original legal text. Not legal advice."}