{"data":{"id":"us-ky/krs-304.48-140","jurisdiction":"us-ky","citation":"KRS 304.48-140","heading":"Operation of group by board of trustees -- Powers and duties --","body":"Directors equivalent to trustees for subtitle.\n(1) Each group shall be operated by a board of trustees which shall consist of not less\nthan two (2) persons selected in the manner prescribed by the liability self-insurance\ngroup or by other laws of the Commonwealth. The trustees shall not be officers,\nemployees, or agents of an administrator or servicing organization. All trustees shall\nbe residents of Kentucky or officers of corporation s authorized to do business in\nKentucky. The trustees shall have the authority to administer the operations of the\nliability self -insurance group, such as assuring that there is adequate funding to\ncover professional or public liabilities, assuring that al l claims are paid promptly,\nand that all necessary precautions are taken to safeguard the assets of the group.\n(2) The board of trustees shall:\n(a) Maintain responsibility for all moneys collected or disbursed from the group;\n(b) Maintain minutes of its me etings and make the minutes available to the\ncommissioner;\n(c) Designate an administrator to carry out the policies established by the board of\ntrustees and to provide day -to-day management of the group, and delineate in\nthe written minutes of its meetings  the areas of authority it delegates to the\nadministrator; and\n(d) Establish a formal conflict -of-interest policy or code of conduct applicable to\nthe board of trustees, officers, and employees that includes a description of the\nsystem used to monitor compliance with the conflict-of-interest policy or code\nof conduct.\n(3) The board of trustees shall not:\n(a) Extend credit to individual group members for payment of contributions or\nassessments, except pursuant to payment plans filed with the commissioner;\nor\n(b) Permit the loan of any moneys to, or borrow any moneys from, the group or in\nthe name of the group. However, a liability self -insurance group formed by\ngovernmental entities may borrow moneys in the name of the group.\n(4) In its discretion, the liabil ity self -insurance group may refer to its trustees as\ndirectors. If this is done, the provisions of this subtitle referring to trustees shall be\nconstrued as referring to directors.\n(5) Upon the request of a group member, a liability self -insurance group s hall make\navailable the statement of financial condition required by subsection (1) of this\nsection.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30205","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:59Z","sha256":"23b2872104d4c708bf8305297931140bc898082f5c0b6f548d286775927e7a49","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.48-130","next":"us-ky/krs-304.48-150"},"notice":"GroundRules: Original legal text. Not legal advice."}