{"data":{"id":"us-ky/krs-304.48-250","jurisdiction":"us-ky","citation":"KRS 304.48-250","heading":"Assessment of members when assets insufficient or when deficiency in","body":"fund year -- Determination of insolvency -- Delinquency proceedings --\nFinancing of payments by governmental entities.\n(1) If the assets of a liability self -insurance group are at any time insufficient to enable\nthe group to discharge its legal liabilities, other obligations, and to maintain the\nrequired reserves under this subtitle, the group shall immediately levy an\nassessment upon its members for the amount necessary to make up the deficiency.\n(2) If there is a deficiency in any fund year, the deficiency shall be made up\nimmediately, from the following:\n(a) Surplus from a fund year other than the current fund year after prior notice of\nthe transfer has been given to the commissioner;\n(b) Administrative funds;\n(c) Assessment of membership; or\n(d) Alternate methods as the commissioner may direct or approve.\n(3) If a liability self-insurance group fails to assess its members within thirty (30) days\nto make up a deficit, t he commissioner shall order it to do so. This subsection shall\nnot apply to liability self -insurance groups formed by governmental entities which\ndo not have joint and several liability.\n(4) If a liability self -insurance group fails to make the required as sessment of its\nmembers within thirty (30) days after the commissioner orders it to do so, or if the\ndeficiency is not fully made up within sixty (60) days after the date on which the\nassessment is made, or within a longer period of time as may be permitte d by the\ncommissioner, the group shall be determined to be insolvent and may be placed in\ndelinquency proceedings as an insurer pursuant to Subtitle 33 of this chapter.\n(5) (a) Governmental entities that:\n1. Participate or have participated in a liability self -insurance group\nauthorized by this subtitle; and\n2. Are assessed by the liability self -insurance group to cover an accrued\ndeficit;\nmay finance the payment of the assessment over a period not to exceed twenty\n(20) years.\n(b) Financing obtained pursuant to paragraph (a) of this subsection may be\naccomplished by:\n1. The issuance of bonds, notes, or other obligations; or\n2. A lease, installment payment agreement, or other similar agreement.\n(c) If the governmental entity fails to make a scheduled payment on the financing\nobtained pursuant to paragraph (a) of this subsection, any payments due to\nthat governmental entity shall be withheld or intercepted using the process\nestablished in KRS 160.160(7).\n(6) Except as provided in subsection (5) of this section, all other provisions of the\nKentucky Revised Statutes applying to any financing obtained by a governmental\nentity shall apply.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56922","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:59Z","sha256":"84ba96e2f1290e90ffdfee62ea53b1dda78f8d082004807ee470cca454386e3e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.48-240","next":"us-ky/krs-304.48-260"},"notice":"GroundRules: Original legal text. Not legal advice."}