{"data":{"id":"us-ky/krs-304.7-361","jurisdiction":"us-ky","citation":"KRS 304.7-361","heading":"Duties of insurer's board of directors.","body":"(1) An insurer's board of directors shall adopt a written plan for acquiring and holding\ninvestments and for engaging in investment practices that specifies guidelines as to\nthe quality, maturity, diversification of investments, and other specifications\nincluding investment strategies intended to assure that the investments and\ninvestment practices are appropriate for the business conducted by the insurer, its\nliquidity needs, and its capital and surplus. The board shall review and assess the\ninsurer's technical investment and administrative capabilities and expertise before\nadopting a written plan concerning an investment strategy or investment practice.\n(2) Investments acquired and held under this subtitle shall be acquired and held under\nthe supervision and d irection of the board of directors of the insurer. The board of\ndirectors shall evidence by formal resolution, at least annually, that it has\ndetermined whether all investments have been made in accordance with delegations,\nstandards, limitations, and inve stment objectives prescribed by the board or a\ncommittee of the board charged with the responsibility to direct its investments.\n(3) On no less than a quarterly basis, and more often if deemed appropriate, an insurer's\nboard of directors or committee of the board of directors shall:\n(a) Receive and review a summary report on the insurer's investment portfolio, its\ninvestment activities, and investment practices engaged in under delegated\nauthority, in order to determine whether the investment activity of th e insurer\nis consistent with its written plan; and\n(b) Review and revise, as appropriate, the written plan.\n(4) In discharging its duties under this section, the board of directors shall require that\nrecords of any authorizations or approvals, other docume ntation as the board may\nrequire, and reports of any action taken under authority delegated under the plan\nreferred to in subsection (1) of this section shall be made available on a regular\nbasis to the board of directors.\n(5) In discharging their duties u nder this section, the directors of an insurer shall\nperform their duties in good faith and with that degree of care that ordinarily\nprudent individuals in like positions would use under similar circumstances.\n(6) If an insurer does not have a board of dir ectors, all references to the board of\ndirectors in this subtitle shall be deemed to be references to the governing body of\nthe insurer having authority equivalent to that of a board of directors.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16836","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:39Z","sha256":"cca6f9c3c2bf5f2f84cc8c741735434f85ed72faeb8d1c89cf6d8712aae4b34b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.7-360","next":"us-ky/krs-304.7-363"},"notice":"GroundRules: Original legal text. Not legal advice."}