{"data":{"id":"us-ky/krs-304.48-090","jurisdiction":"us-ky","citation":"KRS 304.48-090","heading":"Investment of funds.","body":"(1) As used in this section, \"nationally recognized statistical rating organization\" or\n\"NRSRO\" means a credit rating agency approved by the United States Securities\nand Exchange Commission to provide assessments of the creditworthiness of\nfinancial instruments.\n(2) The funds of a liability self-insurance group shall be invested in:\n(a) United States Government bonds, United States Treasury notes, United States\nTreasury bills, or other direct obligations guaranteed by the full faith and\ncredit of the United States Government or its agencies;\n(b) Tax exempt and taxable obligations issued by any state or any of its agencies,\ncounties, cities, municipalities, districts, political subdivisions, or other legal\nauthorities within the United States of America with a mi nimum rating of\n\"BBB\" by any NRSRO, except that no less than fifty percent (50%) of the\ninvestments made under this paragraph shall be in obligations issued by the\nCommonwealth, its agencies, or a county, city, district, municipality, political\nsubdivision, or other legal authority within the Commonwealth;\n(c) Investment share accounts in a savings and loan association in the\nCommonwealth whose deposits are insured by a federal agency;\n(d) Certificates of deposit if issued by a duly chartered commercial bank;\n(e) Equity securities actively traded on the New York or NASDAQ Stock\nExchanges or other registered national securities exchanges with no individual\nequity holding comprising greater than ten percent (10%) of the equity portion\nof the portfolio, reflect ed on the most recent quarterly or annual statement of\nfinancial condition on file with the commissioner, at the time of purchase, as\nfollows:\n1. An investment in an individual equity holding shall not represent more\nthan five percent (5%) of the total market value of the security; and\n2. Investments in equity securities shall not exceed twenty percent (20%)\nof the total market value of the investment portfolio of the liability self -\ninsurance group reflected on the most recent quarterly or annual\nstatement of financial condition on file with the commissioner;\n(f) Corporate bonds if:\n1. The bond is issued, assumed, or guaranteed by a solvent institution\ncreated or existing under the laws of the United States, or a state,\nprovince, district, or territory;\n2. The corporate bond investments do not exceed twenty -five percent\n(25%) of the total market value of the investment portfolio reflected on\nthe most recent quarterly or annual statement of financial condition on\nfile with the commissioner; and\n3. The bond has a minimum rating of \"BBB\" by any NRSRO;\n(g) Mutual funds and exchange traded funds if, at the time of purchase, the\ninvestments do not exceed twenty percent (20%) of the total market value of\nthe investment portfolio reflected on the most recent quarterl y or annual\nstatement of financial condition on file with the commissioner; or\n(h) Asset-backed securities if:\n1. The bond is issued, assumed, or guaranteed by a solvent institution\ncreated or existing under the laws of the United States, or a state,\nprovince, district, or territory;\n2. The asset-backed security investments do not exceed ten percent (10%)\nof the total market value of the investment portfolio reflected on the\nmost recent quarterly or annual statement of financial condition on file\nwith the commissioner; and\n3. The bond has a minimum rating of \"BBB\" by any NRSRO.\n(3) Of the aggregate investments made under this section:\n(a) Not less than fifty percent (50%) of the total market value of the entire\ninvestment portfolio shall be held in cash, cas h equivalents, or securities as\ndescribed in subsection (2)(a) to (d) of this section; and\n(b) A minimum of five percent (5%) of the total investment portfolio value shall\nbe maintained in cash or cash equivalent accounts or United States Treasury\nand Federal Agency Securities with a remaining maturity of one (1) year or\nless.\n(4) In the event that any security investment authorized by subsection (2) of this section\nis downgraded below \"BBB,\" the liability self -insurance group shall divest itself of\nthat investment as prudently as possible without incurring unnecessary losses.\n(5) The commissioner may permit variation from the requirements of this section for\ngood cause shown.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52650","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:59Z","sha256":"ddc7cfee35783855e7c74ed5cb887b806256f89d4bff3ea073d5ddd135128daa","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.48-080","next":"us-ky/krs-304.48-100"},"notice":"GroundRules: Original legal text. Not legal advice."}