FAIR Plan and Reinsurance Association

KRS tit. XXV, ch. 304, subtit. 35

in effect

KRS 304.35-010 Definitions -- Organization of FAIR plan and reinsurance association

304.35-010. Definitions -- Organization of FAIR plan and reinsurance association (1) As used in this subtitle: (a) "Casualty insurance" has the meaning set forth in KRS 304.5-070; and (b) "Property insurance" has the meaning set forth in KRS 304.5-050. (2) All insurers licensed to write property or casualty insurance in this Commonwealth on a direct basis shall, subject to approval and regulation by the commissioner of insurance, establish and maintain a "FAIR" (fair access to insurance requirements) plan and establish and maintain a reinsurance association and formulate and from time to time amend the plan and articles of association and rules and regulations in connection therewith, and assess and share on a fair and equitable basis all expenses, income, and losses incident to such "FAIR" plan and reinsurance association in a manner consistent with the provisions of this subtitle. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1459, effective July 15, 2010. -- Amended 1988 Ky. Acts ch. 225, sec. 1, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 314, sec. 1, effective July 15, 1986. -- Amended 1980 Ky. Acts ch. 359, sec. 1, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 65, sec. 1, effective June 16, 1972.

KRS 304.35-020 Participation

304.35-020. Participation Each insurer authorized to write property or casualty insurance on a direct basis in this Commonwealth shall be required to become and remain a member of the plan and the reinsurance association, and comply with the requirements thereof as a condition of its authority to transact property or casualty insurance business in Kentucky. Effective: July 15, 1988 History: Amended 1988 Ky. Acts ch. 225, sec. 2, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 314, sec. 2, effective July 15, 1986. -- Amended 1980 Ky. Acts ch. 359, sec. 2, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 65, sec. 2, effective June 16, 1972. Legislative Research Commission Note. Although this section is included in Acts 1980, ch. 359, § 2, the proposed change was deleted by committee amendment.

KRS 304.35-030 Requirements of plan and authority of association

304.35-030. Requirements of plan and authority of association (1) The "FAIR" plan and articles of association shall make provision for a reinsurance association having authority on behalf of its members as their agent to cause to be issued property and casualty insurance policies, to reinsure in whole or in part any such policies, and to cede any such reinsurance. The plan and articles of association shall provide, among other things, for the lines of business to be written, policy forms to be used, perils to be covered, geographical area of coverage, compensation and commissions, assessments of members (which assessments annually shall not exceed one percent (1%) of any such member's net direct premium written on a voluntary basis in this state during the preceding year), participation in the writings, expenses, income, and losses in the proportion each member's property and casualty premiums written bear to the aggregate property and casualty premiums voluntarily written by all members, the administration of the plan and association, and any other matter necessary or convenient for the purpose of assuring fair access to insurance requirements. (2) If the commissioner, in the fulfillment of the duties imposed on him or her by KRS 304.13-041, determines that a reasonable degree of competition does not exist in the market for any lines of insurance, within the definitions of KRS 304.5-050 (property insurance) and KRS 304.5-070 (casualty insurance), or either of them, and issues an order to that effect, the commissioner shall order the governing committee to promptly amend the plan to include such line or lines of business unless, in the commissioner's opinion, an effective residual market mechanism as defined in KRS 304.13-011(8) is already then functioning to provide basic insurance requirements to worthy applicants for reasonable amounts of coverage under such line or lines of insurance with insurers licensed to do business in this state. For accounting and rate-making purposes, the commissioner may require the plan to provide for the establishment and maintenance of separate accounts for any line included in the plan pursuant to this section. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1460, effective July 15, 2010. -- Amended 1990 Ky. Acts ch. 260, sec. 1, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 225, sec. 3, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 314, sec. 3, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 167, sec. 13, effective July 13, 1984. -- Amended 1980 Ky. Acts ch. 359, sec. 3, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 65, sec. 3, effective June 16, 1972.

KRS 304.35-040 Governing committee

304.35-040. Governing committee (1) The Reinsurance Association shall be governed by a committee of seven (7) persons to be appointed by the commissioner of insurance, which shall consist of the following: (a) One (1) person representing an insurer chartered under the laws of the Commonwealth of Kentucky; (b) One (1) person representing an insurer that is neither chartered under the laws of the Commonwealth of Kentucky nor affiliated with one (1) of the national insurance trade associations; (c) Three (3) persons from insurance trade organizations representing insurers of various interests; (d) One (1) licensed insurance agent; and (e) One (1) person that meets the requirements of paragraph (a), (b), (c), or (d) of this subsection. (2) The "FAIR" plan shall maintain a formulated plan and articles consistent with this subtitle. The governing committee of the association may, on its own initiative or shall at the request of the commissioner, amend the plan and articles, subject to approval by the commissioner. (3) The governing committee of the association shall, on or before April 1 of each year, file with the commissioner, on such forms as the commissioner requires, an accounting of the plan's operations during the preceding calendar year together with its financial condition, and its underwriting experience as to each separate account maintained therein, as of the end of such year. The commissioner may require interim accountings on a quarterly basis or examine the affairs of the association when, in his or her opinion, such action is necessary to determine the continued solvency of the Reinsurance Association. (4) If at any time the commissioner determines that the Reinsurance Association is or may become unable to meet its financial obligations during the current year, the commissioner shall order the governing committee to levy appropriate assessments within the limitations of KRS 304.35-030(1) against all members. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 166, sec. 3, effective June 27, 2019. -- Amended 2010 Ky. Acts ch. 24, sec. 1461, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 32, sec. 1, effective June 20, 2005. -- Amended 1990 Ky. Acts ch. 260, sec. 2, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 225, sec. 4, effective July 15, 1988. -- Amended 1980 Ky. Acts ch. 359, sec. 4, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 65, sec. 4, effective June 16, 1972.

KRS 304.35-050 Appeals

304.35-050. Appeals Any person aggrieved by any action or decision of the governing committee may appeal to the commissioner of insurance within thirty (30) days from the date of the action or the decision. The commissioner shall, after a hearing conducted in accordance with KRS Chapter 13B, issue a final order approving the action or decision or disapproving the action or decision with respect to the matter which is the subject of appeal. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1462, effective July 15, 2010. -- Amended 1996 Ky. Acts ch. 318, sec. 245, effective July 15, 1996. -- Amended 1980 Ky. Acts ch. 359, sec. 5, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 65, sec. 5, effective June 16, 1972.

KRS 304.35-060 Savings clause

304.35-060. Savings clause All rights and obligations accruing under Chapter 65 of the 1972 Acts or Chapter 359 of the 1980 Acts are hereby preserved. The plan and association created pursuant to KRS 304.35-010 to 304.35-050 shall become the successors to the plan and association created pursuant to Chapter 65 of the 1972 Acts or Chapter 359 of the 1980 Acts, and shall assume all assets and liabilities thereof existing on July 15, 1986, and shall hold all such surplus assets, after the payment of all such liabilities, as a security fund for the payment of loss to insured risks or expense of operating said plan and association until either said security fund is exhausted or the plan and association of any lawful successor thereto is dissolved. Effective: July 15, 1986 History: Amended 1986 Ky. Acts ch. 308, sec. 18, effective July 15, 1986; and ch. 314, sec. 4, effective July 15, 1986. -- Amended 1980 Ky. Acts ch. 359, sec. 6, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 65, sec. 6, effective June 16, 1972. Legislative Research Commission Note: This section was amended by 1986 Acts ch. 308, sec. 18, and 1986 Acts ch. 314, sec. 4, which are in conflict in the amendments to (1) of this section. Pursuant to KRS 446.250, the deletion of (1) by 1986 Acts ch. 308, sec. 18, prevails as the last enacted. Legislative Research Commission Note. Although this section is included in Acts 1980, ch. 359, § 2, the proposed change was deleted by committee amendment.

KRS 304.35-070 Repealed, 1980

304.35-070. Repealed, 1980 Catchline at repeal: Riot or civil disorders reinsurance reimbursement fund. History: Repealed 1980 Ky. Acts ch. 359, sec. 7, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 65, sec. 7, effective June 16, 1972.

KRS 304.35-080 Repealed, 1980

304.35-080. Repealed, 1980 Catchline at repeal: Assessment -- Inability to pay. History: Repealed 1980 Ky. Acts ch. 359, sec. 7, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 65, sec. 8, effective June 16, 1972.

KRS 304.35-090 Repealed, 1980

304.35-090. Repealed, 1980 Catchline at repeal: Deposit of assessments. History: Repealed 1980 Ky. Acts ch. 359, sec. 7, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 65, sec. 9, effective June 16, 1972.

KRS 304.35-100 Repealed, 1980

304.35-100. Repealed, 1980 Catchline at repeal: Recoupment by insurers. History: Repealed 1980 Ky. Acts ch. 359, sec. 7, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 65, sec. 10, effective June 16, 1972.

KRS 304.35-105 Report of FAIR plan commercial real property policy applicants' names to state fire marshal

304.35-105. Report of FAIR plan commercial real property policy applicants' names to state fire marshal The commissioner shall request, receive and transmit the names and addresses of all commercial real property policy applicants to the "FAIR" plan to the state fire marshal. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1463, effective July 15, 2010. -- Amended 1986 Ky. Acts ch. 314, sec. 5, effective July 15, 1986. -- Created 1978 Ky. Acts ch. 305, sec. 24, effective June 17, 1978.

KRS 304.35-110 Repealed, 1980

304.35-110. Repealed, 1980 Catchline at repeal: Termination -- Outstanding obligations. History: Repealed 1980 Ky. Acts ch. 359, sec. 7, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 65, sec. 11, effective June 16, 1972.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38750Fetched: 10/20/2026