{"data":{"id":"us-ky/krs-304.42-120","jurisdiction":"us-ky","citation":"KRS 304.42-120","heading":"Detection and prevention of member insurer insolvencies or","body":"impairments.\nTo aid in the detection and prevention of member insurer insolvencies or impairments:\n(1) It shall be the duty of the commissioner:\n(a) To notify the commissioners of al l of the other states, territories of the United\nStates and the District of Columbia when he or she takes any of the following\nactions against a member insurer:\n1. Revocation of license;\n2. Suspension of license;\n3. Makes any formal order that the member i nsurer restrict its premium\nwriting, obtain additional contributions to surplus, withdraw from the\nstate, reinsure all or any part of its business, or increase capital, surplus,\nor any other account for the security of policy owners, contract owners,\ncertificate holders, or creditors.\nSuch notice shall be mailed to all commissioners within thirty (30) days\nfollowing the action taken or the date on which such action occurs;\n(b) To report to the board of directors when he or she has taken any of the actions\nset forth in paragraph (a) of this subsection or has received a report from any\nother commissioner indicating that any such action has been taken in another\nstate. Such report to the board of directors shall contain all significant details\nof the action taken or the report received from another commissioner;\n(c) To report to the board of directors when he or she has reasonable cause to\nbelieve from any examination, whether completed or in process, of any\nmember insurer that the member insurer may be an impa ired or insolvent\ninsurer; and\n(d) To furnish to the board of directors the NAIC insurance regulatory\ninformation system information developed by the National Association of\nInsurance Commissioners, and the board may use the information contained\ntherein in carrying out its duties and responsibilities under this section. Such\nreport and the information contained therein shall be kept confidential by the\nboard of directors until such time as made public by the commissioner or\nother lawful authority.\n(2) The commissioner may seek the advice and recommendations of the board of\ndirectors concerning any matter affecting his or her duties and responsibilities\nregarding the financial condition of member insurers and insurers or health\nmaintenance organizations seeking admission to transact business in this state.\n(3) 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 i nsurer or germane to the solvency of\nany insurer or health maintenance organization seeking to do business in this state.\nThese reports and recommendations are confidential by law and shall not be\nconsidered public records.\n(4) The board of directors may , upon majority vote, notify the commissioner of any\ninformation indicating any member insurer may be an impaired or insolvent insurer.\n(5) The board of directors may, upon majority vote, make recommendations to the\ncommissioner for the detection and prevention of member insurer insolvencies.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48767","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:58Z","sha256":"d46d61ecb61d6e4cb914a8b7545b6064009dd07b420acdaf421116edd905272b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.42-110","next":"us-ky/krs-304.42-130"},"notice":"GroundRules: Original legal text. Not legal advice."}