{"data":{"id":"us-ky/krs-304.40-030","jurisdiction":"us-ky","citation":"KRS 304.40-030","heading":"Joint underwriting association -- Health care provider categories --","body":"Termination -- Powers of association.\n(1) A temporary joint underwriting association is hereby created, consisting of all\ninsurers authorized to write and engage in writing in thi s state on a direct basis the\nfollowing lines of insurance, as reported in the companies' annual statements:\n(a) Workers' compensation;\n(b) Liability other than auto;\n(c) Private passenger auto liability;\n(d) Commercial auto liability;\n(e) The liability portion of commercial multiperil policies; and\n(f) Health insurance including prepaid hospital services contracts and group or\nblanket health insurance.\nEvery such insurer shall remain a member of the joint underwriting association as a\ncondition of its authority to continue to transact such kinds of insurance in this state.\n(2) The implementation of the operation of the joint underwriting association shall\nbecome effective upon the order of the commissioner. The commissioner shall not\norder the association to commence underwriting operations until he or she, after due\nhearing and investigation, has determined that medical malpractice insurance cannot\nbe made available in the voluntary market for any of the categories defined in\nsubsection (3)(a), (b), and (c ) of this section. The joint underwriting association\nshall remain in effect for a period of no longer than two and one -half (2-1/2) years\nfrom the date that it commences underwriting operations.\n(3) For the purposes of the joint underwriting association, three (3) health care provider\ncategories shall be established:\n(a) Physicians and surgeons;\n(b) Hospitals; and\n(c) All other licensed health care providers.\nThe commissioner shall hold separate hearings and conduct investigations on each\nof the three (3)  categories of health care providers and determine for each category\nwhether or not medical malpractice insurance is readily available in the voluntary\nmarket. If the commissioner finds that insurance is not readily available for any of\nthe categories of h ealth care providers, the joint underwriting association shall\ncommence underwriting operations for that category.\nKRS 304.40-030 to 304.40-140 shall not preclude any licensed health care provider\nfrom procuring medical malpractice insurance from the voluntary market.\nIf the commissioner determines at any time that medical malpractice insurance is\nreadily available in the voluntary market for either (a) physicians and surgeons, (b)\nhospitals, or (c) all other licensed health care providers, the association shall thereby\ncease its underwriting operations for such category of medical malpractice\ninsurance which the commi ssioner has determined is readily available in the\nvoluntary market.\n(4) The association shall, pursuant to the provisions of KRS 304.40 -030 to 304.40-140\nand the plan of operation with respect to medical malpractice insurance, have the\npower on behalf of its members:\n(a) To issue, or to cause to be issued, policies of insurance to applicants,\nincluding incidental coverages and subject to limitations as specified in the\nplan of operation, but not to exceed one hundred thousand dollars ($100,000)\nfor each cl aimant under one (1) policy and one million dollars ($1,000,000)\nfor all claimants under one (1) policy in any one (1) year;\n(b) To underwrite such insurance and to adjust and pay losses with respect\nthereto, or to appoint service companies to perform those functions;\n(c) To assume reinsurance from its members;\n(d) To cede reinsurance; and\n(e) To negotiate and obtain in the voluntary market medical malpractice insurance\nfor any health care provider to whom the association has issued or caused to\nbe issued a policy of medical malpractice insurance with the foregoing limits.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30069","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:57Z","sha256":"475acfa2437ba17e02c701170c76f9009ed7caa96b3771678bf6a5e75ec23d0f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.40-020","next":"us-ky/krs-304.40-040"},"notice":"GroundRules: Original legal text. Not legal advice."}