{"data":{"id":"us-ky/krs-342.823","jurisdiction":"us-ky","citation":"KRS 342.823","heading":"Discounting not to be used in determining solvency -- Authority's reports -","body":"- Annual statement of solvency -- Circumstances permitting contract audit\nwith certified public accountant -- Discretionary levy and enforcement of\nassessments.\n(1) In determin ing the solvency of the authority in regard to maintaining adequate\nreserves, the commissioner of insurance, the independent accountant engaged for\nthe annual audit, and the board, in exercising its prudent stewardship, shall not\nutilize the practice of \"d iscounting\" the funds to reduce future liabilities, except in\nconformity with standards or rules promulgated by the National Association of\nInsurance Commissioners.\n(2) The authority shall file reports required by KRS 304.3-240.\n(3) The authority shall fil e a report not later than March 31 of each year indicating the\nbusiness done by the authority during the previous year, including a balance sheet\nshowing assets and liabilities at the beginning and conclusion of that year. The\nreport shall be a public record and shall be delivered to the Governor, commissioner\nof insurance, Auditor of Public Accounts, Attorney General, and the co-chairs of the\nLegislative Research Commission. Additionally, a statement of solvency shall be\nprepared which shall include, at a minimum:\n(a) A summary of the prior quarterly reports required in KRS 342.821;\n(b) A management projection of the future solvency status for the authority; and\n(c) Any recommendations pertaining to the same.\n(4) The authority shall not enter into any contr act with a certified public accountant for\nan audit unless the Auditor of Public Accounts has declined in writing to perform\nthe audit or has failed to respond within thirty (30) days of receipt of a written\nrequest for an audit. Any contract with a certif ied public accountant entered into as\na result of the Auditor of Public Accounts declining to perform the audit shall\nspecify the following:\n(a) That the certified public accountant shall forward a copy of the audit report\nand management letters to the Aud itor of Public Accounts, Attorney General,\nand Legislative Research Commission; and\n(b) That the Auditor of Public Accounts shall have the right to review the\ncertified public accountant's work papers.\n(5) If at any time the assets of the authority are les s than its liabilities, the board may\nlevy an assessment on its policyholders in the manner provided in Subtitle 24 of\nKRS Chapter 304.","path":["KRS Chapter 342"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=32571","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:32Z","sha256":"8014ecda3bde97bcb5ff13d12663e4c0803cb0f3fe94fcc591e66430073c4762","source_id":"us-ky","stale":false,"prev":"us-ky/krs-342.821","next":"us-ky/krs-342.825"},"notice":"GroundRules: Original legal text. Not legal advice."}