{"data":{"id":"us-ky/krs-304.48-070","jurisdiction":"us-ky","citation":"KRS 304.48-070","heading":"Scope of section -- Financial strength required.","body":"(1) This section applies to a group applying for and holding a certificate of filing as a\nliability self-insurance group.\n(2) To obtain and to maintain its certificate of filing a liability self -insurance group\nshall have sufficient financial strength to pay a ll public or professional liabilities\ncovered by the group, including known claims and expenses and incurred but not\nreported claims and expenses.\n(3) The commissioner, if not satisfied with the financial strength of a liability self -\ninsurance group, may require any or all of the following of a liability self -insurance\ngroup:\n(a) Security in the form and amount prescribed by the commissioner as follows:\n1. A surety bond issued by a corporate surety authorized to transact\nbusiness in the Commonwealth of Kentucky; or\n2. Any financial security endorsement issued as part of an acceptable\nexcess insurance contract issued by an authorized insurer may be used to\nmeet all or part of the security requirement. The bond or financial\nsecurity endorsement shall be for th e benefit of the insured creditors\nsolely to pay claims and associated expenses and shall be payable upon\nthe failure of the group to pay professional or public liability claims it is\nlegally obligated to pay. The commissioner may establish and adjust the\nrequirements for the amount of security based on differences among\ngroups in their size, types or business, years in existence, or other\nrelevant factors.\n(b) Specific and aggregate excess insurance in a form, in an amount, and issued\nby an insurer acceptable to the commissioner.\n(c) A fidelity bond for the administrator and a fidelity bond for the service\ncompany in forms and amounts prescribed by the commissioner. The\ncommissioner may require the service company providing claim service to\nfurnish a perfor mance bond in a form and amount prescribed by the\ncommissioner.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30198","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:59Z","sha256":"c75f9cb1d94465b44a37ca404b705d2fed763a83e22d6816d3380660668cdad1","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.48-060","next":"us-ky/krs-304.48-080"},"notice":"GroundRules: Original legal text. Not legal advice."}