{"data":{"id":"us-ky/krs-304.50-015","jurisdiction":"us-ky","citation":"KRS 304.50-015","heading":"Definitions for subtitle.","body":"As used in this subtitle, unless the context requires otherwise:\n(1) \"Adjuster\" means any person required to be licensed as an adjuster under Subtitle 9\nof this chapter, who for a fee or compensation investigates or settles claims arising\nunder contracts i ssued by a workers' compensation self -insured group on behalf of\neither the group member or the group;\n(2) \"Administrator\" means an individual or legal entity engaged by a self -insured\ngroup's board of trustees to carry out the policies established by the self-insured\ngroup's board of trustees and provide day -to-day management of the self -insured\ngroup;\n(3) \"Agent\" means an individual or business entity required to be licensed by the\nDepartment of Insurance under Subtitle 9 of this chapter, to sell or solic it\napplications for insurance or to negotiate insurance contracts;\n(4) \"Aggregate excess insurance\" means insurance which provides that the excess\ninsurer pays on behalf of or reimburses a self -insurer for its payment of benefits on\nclaims incurred during a policy period in excess of the retention amount to the\nexcess insurer's limit of liability;\n(5) \"Assessment\" means a levy made on members of the group to fund deficiencies;\n(6) \"Bona fide trade association\" means an association of employers created for a\nnoninsurance trade purpose and which has been operating in the Commonwealth for\nat least two (2) years prior to its sponsorship of a self-insured group;\n(7) \"Certificate of filing\" means the certificate issued to a workers' compensation self -\ninsured group  to indicate that it has complied with the provisions of this subtitle\nwhich are prerequisites to its operation;\n(8) \"Common interests\" means employers that are engaged in similar activities, share\ncommon standard industrial classification codes and common risk factors;\n(9) \"Consultant\" means an individual, required to be licensed under Subtitle 9 of this\nchapter, who as an independent contractor in relation to his or her client, for fee or\ncompensation other than from a workers' compensation self -insured group, in any\nmanner advises or purports to advise any person actually or prospectively a member\nof such a group concerning coverage, advisability, rights, or interests under the\ncontract or relative to the retention, exchange, surrender, or exercise of rig hts\nthereunder;\n(10) \"Coverage form\" means coverage contract forms, endorsements, applications,\nindemnity agreements, clauses, riders, and all other documents regarding coverage;\n(11) \"Deficiency\" means that the self-insured group's assets are insufficient to enable the\ngroup to discharge its legal liabilities and other obligations and maintain the\nreserves required under this subtitle, or that the group has a negative members' fund\nbalance;\n(12) \"Deficit\" means the amount of any deficiency in the self -insured group or group\nself-insurance fund;\n(13) \"Dividends\" means disbursements from surplus funds to group members in\naccordance with a plan filed with, and approved by, the commissioner;\n(14) \"Earned premium\" means the p rorated portion of the full, actual premium charged\nto the group members that is applicable to the group's accounting period or fiscal\nyear;\n(15) \"Employee\" means those persons covered under the provisions of KRS 342.640 and\nthose persons voluntarily covered under KRS 342.660;\n(16) \"Employer\" means an employer mandatorily subject to and required to comply with\nthe provisions of KRS Chapter 342, and those voluntarily covering excluded\nemployees pursuant to KRS 342.660;\n(17) \"Commissioner\" means the commissio ner of the Kentucky Department of\nInsurance;\n(18) \"Fiscal agent\" means a person or legal entity, other than a service organization or\nemployees or agents of a service organization, designated by the trustees to receive,\ninvest, and disburse the self-insured group's funds;\n(19) \"Forms\" means coverage contract forms, endorsements, applications, indemnity\nagreements, clauses, riders, articles of association, articles of incorporation, trust\nagreements or bylaws of the proposed group, and all other documents re garding\ncoverage and membership;\n(20) \"Governmental entities\" means cities, counties, urban -county governments, charter\ncounty governments, consolidated local governments, school districts, and other\npolitical subdivisions of the Commonwealth, and their bo ards, agencies, authorities,\nand commissions;\n(21) \"Group members\" means employers who have joined a self-insured group;\n(22) \"Group self -insurance fund\" means the contractual arrangement whereby twenty\n(20) or more employers with common interests or two ( 2) or more governmental\nentities associate to jointly self-insure their workers' compensation liability;\n(23) \"Insolvent\" or \"insolvency\" means the inability of a self -insured group to pay its\noutstanding lawful obligations as they mature in the regular course of business, or to\nhold sufficient assets to prospectively pay all incurred workers' compensation\nbenefits when due;\n(24) \"Insurance producer\" means an individual or business entity required to be licensed\nunder Subtitle 9 of this chapter to sell, sol icit, or negotiate insurance. \"Insurance\nproducer\" includes agent, consultant, managing general agent, surplus lines broker,\nreinsurance intermediary broker and manager, and, for a workers' compensation\nself-insured group, a third-party administrator;\n(25) \"Person\" includes, but is not limited to, any individual, partnership, association,\nlimited liability company, trust, or corporation;\n(26) \"Premium\" means the amount of money charged each member of the self -insured\ngroup to fund the obligations and expenses of the self-insured group;\n(27) \"Qualified actuary\" means an associate or fellow of the Casualty Actuarial Society;\n(28) \"Rate\" means the expected value of the future cost of insurance per exposure unit\nwhich accounts for the treatment of losses, expens es, and profit prior to any\napplication of individual risk variations based on loss or expense considerations, but\ndoes not include minimum premium;\n(29) \"Self-insured group\" means a group self-insurance fund;\n(30) \"Self-insurance year\" means the annual pe riod of certification of the self -insured\ngroup authorized under KRS 304.50-010 and 342.350;\n(31) \"Service organization\" means a person or entity that provides services to a self -\ninsured group and includes claims adjustment, safety engineering, statistical\ncompilation, preparation of premium charges, loss and tax reports or other reports\nrequired by the commissioner, administration of the self -insured group, marketing\nservices, placement of excess insurance, development of member payroll audits,\nadministration of investments, or legal assistance;\n(32) \"Specific excess insurance\" means an insurance policy which insures the amount of\na claim from one (1) occurrence involving one (1) or more employees or employers\nin the same occurrence or incident of exposure in excess of a specified dollar\namount to a stated limit;\n(33) \"Supplementary rating information\" means any manual or plan of rates,\nclassification, rating schedule, minimum premium, policy fees, rating rules, or any\nsimilar information needed to determine  the applicable rate or premium. This shall\ninclude underwriting rules, but only to the extent necessary to determine the rate or\npremium that will be applicable to a risk should the self -insured group decide to\nprovide coverage. This does not include guid elines that relate to the selection of\nthose risks that are acceptable to a workers' compensation self-insured group;\n(34) \"Supporting information\" means the experience and judgment of the filer and the\nexperience or data of other insurers or organizations  relied on by the filer, the\ninterpretation of any other data relied on by the filer, descriptions of methods used\nin making the rates, and any other information required by the commissioner;\n(35) \"Surplus funds\" means the excess of the self -insured group' s assets over its\nliabilities; and\n(36) \"Trustees\" means persons elected by the group members or appointed by the board\nof directors of the sponsoring trade association or association of governmental\nentities to oversee the administration of the self-insured group.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30247","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:00Z","sha256":"f1505b387061ab0db6d2219efdb26fc83d8b1dd81830671db58d65ab043b5f41","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.50-010","next":"us-ky/krs-304.50-020"},"notice":"GroundRules: Original legal text. Not legal advice."}