{"data":{"id":"us-ky/krs-304.49-110","jurisdiction":"us-ky","citation":"KRS 304.49-110","heading":"Reinsurance on risks ceded by other insurer or captive insurer","body":"authorized -- Powers of commissioner.\n(1) Any captive insurer may provide reinsurance, as provided in KRS 304.5-130, 304.5-\n140, and 304.5-150, on risks ceded by any other insurer.\n(2) A captive insurer may provide reinsurance on risks ceded by any other insurer or\ncaptive insurer.\n(3) (a) Any captive insurer may take credit for reserves on risks or portions of risks\nceded to reinsurers complying with the provisions of KRS 304.5-140.\n(b) A captive insurer shall not take credit for reserves on risks or portions of risks\nceded to a reinsurer if the reinsurer is not in compliance with KRS 304.5-140.\n(c) Prior approval of the commissioner shall be required for ceding or taking\ncredit for the r einsurance of risks or portions of risks ceded to reinsurers not\ncomplying with KRS 304.5-130, 304.5-140, and 304.5-150.\n(4) For all purposes of KRS 304.49 -010 to 304.49 -230, insurance by a captive insurer\nof any workers' compensation qualified self -insured plan of its parent and affiliates\nshall be deemed to be reinsurance.\n(5) A captive insurer may take credit for the reinsurance of risks or portions of risks\nceded to a pool, exchange, or association acting as an insurer or a reinsurer which\nhas been authorized by the commissioner. The commissioner may require any other\ndocuments, financial information, or other evidence that the pool, exchange, or\nassociation will be able to provide adequate security for its financial obligations.\nThe commissioner may den y authorization or impose any limitations on the\nactivities of a reinsurance pool, exchange, or association that in the commissioner's\njudgment are necessary and proper to provide adequate security for the ceding\ncaptive insurer or segregated account and f or the protection and consequent benefit\nof the public at large.\n(6) The commissioner may impose any other requirements that he or she deems\nnecessary before permitting credit for reinsurance under this section, including but\nnot limited to requiring an ap proved funds-held agreement, letter of credit, trust or\nother acceptable collateral based on unearned premium, loss and loss adjustment\nexpense reserves, and incurred but not reported reserves.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30228","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:59Z","sha256":"2e9e89478438d05e314b187580797ad09ba7acd6201f9831aaebd16c6d093185","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.49-100","next":"us-ky/krs-304.49-120"},"notice":"GroundRules: Original legal text. Not legal advice."}