{"data":{"id":"us-ky/krs-304.41-060","jurisdiction":"us-ky","citation":"KRS 304.41-060","heading":"Stabilization reserve fund.","body":"(1) There is hereby created a stabilization reserve fund which shall be administered by\nthree (3) directors, one (1) of whom shall be the commissioner or the\ncommissioner's deputy. The remaining two (2) directors shall be appointed by the\ncommissioner. One (1)  shall be a representative of the association; the other a\nrepresentative of its policyholders. The directors shall serve without salary, but shall\nbe reimbursed for actual and necessary expenses incurred in the performance of\ntheir duties when approved by the commissioner.\n(2) Each policyholder shall pay to the association a stabilization reserve fund charge\nequal to one -third (1/3) of each premium payment due for insurance through the\nassociation. Such charge shall be separately stated in the policy. The association\nshall cancel the policy of any policyholder who fails to pay the stabilization reserve\nfund charge.\n(3) The association shall promptly pay to the trustee of the fund all stabilization reserve\nfund charges which it collects from its policyholders and any retrospective premium\nrefunds payable under the group retrospective rating plan authorized by KRS\n304.41-050(4).\n(4) All moneys received by the fund shall be held in trust by a corporate trustee selected\nby the directors. The trustee may invest the trust fund, subject to the approval of the\ndirectors. All investment income shall be credited to the fund. All expenses of\nadministration of the fund shall be charged against the fund. The trust fund shall be\nused solely for the purpose of discharging w hen due any retrospective premium\ncharges payable by policyholders of the association under the group retrospective\nrating plan authorized by KRS 304.41 -050(4). Payment of retrospective premium\ncharges shall be made by the directors upon certification to t hem by the association\nof the amount due. If the trust fund is finally exhausted in payment of retrospective\npremium charges, all liability and obligations of the association's policyholders with\nrespect to the payment of retrospective premium charges shal l thereupon terminate\nand shall be conclusively presumed to have been discharged. Any moneys\nremaining in the fund after all such retrospective premium charges have been paid\nshall be returned to policyholders under procedures authorized by the directors.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30096","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:58Z","sha256":"535c1cf3e1e40918c81177721ec9f5adaceffd94b03b004595b07416e78e5cd9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.41-050","next":"us-ky/krs-304.41-070"},"notice":"GroundRules: Original legal text. Not legal advice."}