{"data":{"id":"us-ky/krs-304.50-090","jurisdiction":"us-ky","citation":"KRS 304.50-090","heading":"Membership -- Indemnity agreement -- Expulsion, nonrenewal, or","body":"cancellation of member by group -- Voluntary withdrawal -- Liability on\ntermination of membership, insolvency, or bankruptcy.\n(1) An employer joining a workers' compensation self-insured group after the group has\nbeen issued a certificate of filing shall submit an application for membership to the\nboard of trustees or its administrator and enter into an indemnity agreement.\nMembership shall not take effect earlier than each member's date  of application.\nThe application for membership and its approval shall be maintained as permanent\nrecords of the board of trustees. The board of trustees shall require each member to\nexecute a joint and several liability agreement, or other annual ratifica tion or\naffirmation of indemnity, upon each renewal.\n(2) The self-insured group shall be considered an individual employer for all purposes\nof taxation and the individual members of the group shall not be exposed to tax\nliability other than liability exist ing as a result of the indemnity agreement with the\nother group members and the self-insured group.\n(3) At the discretion of the trustees, the self -insured group may include the Kentucky\nemployees of foreign (out-of-state) employers.\n(4) Individual members of a workers' compensation self -insured group shall be subject\nto expulsion, nonrenewal, or cancellation by the group by giving the member and\nthe commissioner of the Department of Workers' Claims thirty (30) days advance\nnotice. Such expulsion, nonrenewal, or cancellation shall be executed in accordance\nwith the bylaws of the group and for reasons including but not limited to:\n(a) Adverse claims experience;\n(b) Lack of cooperation with safety and loss prevention policies; or\n(c) Failure to report payroll in accordance with the rules and rating plan of the\nself-insured group.\n(5) At least thirty (30) days prior to the due date, the trustees shall notify each group\nmember of all premiums due, including adjustments. Failure by a member to pay\nthe premium or a ssessments due prior to the due date may result in immediate\ncancellation from the group by the trustees. Ten (10) days advance notice of such\ncancellation shall be given to the member and the commissioner of the Department\nof Workers' Claims.\n(6) Individual group members may elect to withdraw from the group only upon sixty\n(60) days written notice to the commissioner of the Department of Workers' Claims\nand the trustees.\n(7) The trustees shall report to the commissioner any person who behaves fraudulently\nas described in Subtitle 47 of this chapter.\n(8) A workers' compensation self -insured group shall pay all workers' compensation\nbenefits required under KRS Chapter 342 for which each member incurs liability\nduring its period of membership, including assess ments. A member who elects to\nwithdraw its membership or is terminated by a group remains liable for workers'\ncompensation liabilities, obligations, and assessments during the terminated or\nwithdrawn group member's period of membership. A group member shal l not be\nrelieved of its workers' compensation liabilities incurred, including assessments,\nduring its period of membership, except through payment by the group or the\nmember of these liabilities.\n(9) The insolvency or bankruptcy of a group member shall no t relieve the workers'\ncompensation self-insured group or any group member of liability for the payment\nof workers' compensation benefits incurred during the insolvent or bankrupt group\nmember's period of membership.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30262","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:00Z","sha256":"75d569509414c43b24213903f4ae8aa6cedab1ee6e6b806c891591f854de2eb2","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.50-085","next":"us-ky/krs-304.50-095"},"notice":"GroundRules: Original legal text. Not legal advice."}