{"data":{"id":"us-ky/krs-304.50-140","jurisdiction":"us-ky","citation":"KRS 304.50-140","heading":"Suspension or revocation of certificate of filing -- Civil penalty --","body":"Hearing and appeal -- Notification requirements and exceptions.\n(1) After a hearing or upon agreement by the workers' compensation self-insured group,\nthe commissioner may suspen d or revoke the certificate of filing of a self -insured\ngroup, impose a civil penalty of up to ten thousand dollars ($10,000) per violation,\nor both if the group:\n(a) Operates significantly in contravention of its basic organizational document or\nin a mann er contrary to that described in and reasonably inferred from any\nother information submitted under this subtitle, or administrative regulations\nrelating to this subtitle, unless amendments to the submissions have been filed\nwith and approved by the commis sioner or there has been a significant and\nadverse change in the management of the self-insured group;\n(b) Or any person at the direction of the group advertises or merchandises its\nservices in an untrue, misrepresentative, misleading, deceptive, or unfair\nmanner, or engages in unfair or deceptive practices as defined in Subtitle 12 of\nthis chapter;\n(c) Violates the provisions of this subtitle or administrative regulations adopted\nthereunder;\n(d) Obtains a certificate of filing by unfair or deceptive means;\n(e) Misappropriates, converts illegally, withholds, or refuses to pay upon proper\ndemand any moneys that belong to a member, an employee of a member, or a\nperson otherwise entitled to such moneys by the group or its administrator; or\n(f) Violated or faile d to correct a violation of this subtitle or administrative\nregulations promulgated under this subtitle within a reasonable time period\nestablished by the commissioner in administrative regulations.\n(2) In addition, the commissioner may impose a civil pena lty of up to ten thousand\ndollars ($10,000) per day for continuing violations.\n(3) The commissioner shall conduct a hearing under this section in accordance with\nSubtitle 2 of this chapter. The ruling of the commissioner may be appealed to\nFranklin Circuit  Court in accordance with KRS 304.2 -370. The commissioner,\nduring the pendency of an appeal or request for a hearing, may utilize the security\ndeposit provided by the self -insured group to make payments of any workers'\ncompensation benefits currently due.\n(4) If the commissioner revokes a self -insured group's certification, the commissioner\nshall immediately notify the Kentucky group self -insurance guaranty fund as\nestablished in KRS 342.906(2).\n(5) When a certificate of filing of a self-insured group is suspended, the group shall not,\nduring the period of suspension, enroll any new participants or engage in any\nadvertising or solicitation.\n(6) If the certificate of filing of a self -insured group is revoked for reasons other than\nhazardous financial conditio n, the group shall proceed, immediately following the\neffective date of the order of revocation, to conclude its affairs and shall conduct no\nfurther business, except as may be essential to the orderly conclusion of the affairs\nof the group. The group shal l engage in no further advertising or solicitation. The\ncommissioner may, by written order, prevent further operation of the self -insured\ngroup if further operation is not deemed to be in the best interest of the members,\nand the self -insured group's membe rs will be afforded the greatest practical\nopportunity to obtain workers' compensation coverage elsewhere. If the\ncommissioner permits further operation, the workers' compensation self -insured\ngroup shall continue to collect the premiums and assessments re quired of its\nmembers.\n(7) The commissioner, in his or her discretion and without advance notice or a hearing,\nmay suspend or revoke the certificate of filing of any workers' compensation self -\ninsured group upon commencement of the following proceedings:\n(a) Receivership;\n(b) Conservatorship;\n(c) Rehabilitation; or\n(d) Other delinquency proceedings.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30272","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:00Z","sha256":"982322d09391c6407be8bdde19531e29581248b059cc8d02bef22569a203b5f5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.50-135","next":"us-ky/krs-304.50-145"},"notice":"GroundRules: Original legal text. Not legal advice."}