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Form a Business

Motor Vehicle Reparations Act

KRS tit. XXV, ch. 304, subtit. 39
in effect

KRS 304.39-010 Policy and purpose

304.39-010. Policy and purpose The toll of about 20,000,000 motor vehicle accidents nationally and comparable experience in Kentucky upon the interests of victims, the public, policyholders and others require that improvements in the reparations provided for herein be adopted to effect the following purposes: (1) To require owners, registrants and operators of motor vehicles in the Commonwealth to procure insurance covering basic reparation benefits and legal liability arising out of ownership, operation or use of such motor vehicles; (2) To provide prompt payment to victims of motor vehicle accidents without regard to whose negligence caused the accident in order to eliminate the inequities which fault-determination has created; (3) To encourage prompt medical treatment and rehabilitation of the motor vehicle accident victim by providing for prompt payment of needed medical care and rehabilitation; (4) To permit more liberal wage loss and medical benefits by allowing claims for intangible loss only when their determination is reasonable and appropriate; (5) To reduce the need to resort to bargaining and litigation through a system which can pay victims of motor vehicle accidents without the delay, expense, aggravation, inconvenience, inequities and uncertainties of the liability system; (6) To help guarantee the continued availability of motor vehicle insurance at reasonable prices by a more efficient, economical and equitable system of motor vehicle accident reparations; (7) To create an insurance system which can more adequately be regulated; and (8) To correct the inadequacies of the present reparation system, recognizing that it was devised and our present Constitution adopted prior to the development of the internal combustion motor vehicle. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 1, effective July 1, 1975.

KRS 304.39-020 Definitions for subtitle

304.39-020. Definitions for subtitle As used in this subtitle: (1) "Added reparation benefits" mean benefits provided by optional added reparation insurance; (2) "Basic reparation benefits" mean benefits providing reimbursement for net loss suffered through injury arising out of the operation, maintenance, or use of a motor vehicle, subject, where applicable, to the limits, deductibles, exclusions, disqualifications, and other conditions provided in this subtitle. The maximum amount of basic reparation benefits payable for all economic loss resulting from injury to any one (1) person as the result of one (1) accident shall be ten thousand dollars ($10,000), regardless of the number of persons entitled to such benefits or the number of providers of security obligated to pay such benefits. Basic reparation benefits consist of one (1) or more of the elements defined as "loss"; (3) "Basic reparation insured" means: (a) A person identified by name as an insured in a contract of basic reparation insurance complying with this subtitle; and (b) While residing in the same household with a named insured, the following persons not identified by name as an insured in any other contract of basic reparation insurance complying with this subtitle: 1. A spouse or other relative of a named insured; and 2. A minor in the custody of a named insured or of a relative residing in the same household with the named insured if he usually makes his home in the same family unit, even though he temporarily lives elsewhere; (4) "Injury" and "injury to person" mean bodily harm, sickness, disease, or death; (5) "Loss" means accrued economic loss consisting only of medical expense, work loss, replacement services loss, and, if injury causes death, survivor's economic loss and survivor's replacement services loss. Noneconomic detriment is not loss. However, economic loss is loss although caused by pain and suffering or physical impairment. (a) 1. "Medical expense" means reasonable charges incurred for reasonably needed products, services, and accommodations, including those for medical care, physical rehabilitation, rehabilitative occupational training, licensed ambulance services, and other remedial treatment and care. "Medical expense" may include non-medical remedial treatment rendered in accordance with a recognized religious method of healing. The term includes a total charge not in excess of five thousand dollars ($5,000) per person for expenses in any way related to funeral, cremation, and burial. It does not include that portion of a charge for a room in a hospital, clinic, convalescent or nursing home, or any other institution engaged in providing nursing care and related services, in excess of a reasonable and customary charge for semi-private accommodations, unless intensive care is medically required. "Medical expense" shall include all healing arts professions licensed by the Commonwealth of Kentucky. 2. a. A medical expense paid by a reparation obligor or its third -party administrator pursuant to this subtitle shall not: i. Except as provided in subpart ii. of this subdivision, exceed the maximum fee allowed or listed for that expense on the relevant schedule of fees established pursuant to KRS 342.035 that is in effect at the time the medical expense is incurred; or ii. Be less than the maximum fee allowed or listed for that expense on the relevant schedule of fees established pursuant to KRS 342.035 that is in effect on July 15, 2026. Other requirements, terms, or conditions imposed under or associated with the relevant schedule of fees established pursuant to KRS 342.035 shall not apply to this subtitle. b. Subdivision a. of this subparagraph shall not be construed as making basic reparation benefits or added reparation benefits primary. 3. Solely for the purpose of basic reparation benefits and added reparation benefits, there shall be a presumption that any medical expense submitted in accordance with this paragraph is reasonable. (b) "Work loss" means loss of income from work the injured person would probably have performed if he had not been injured, and expenses reasonably incurred by him in obtaining services in lieu of those he would have performed for income, reduced by any income from substitute work actually performed by him. (c) "Replacement services loss" means expenses reasonably incurred in obtaining ordinary and necessary services in lieu of those the injured person would have performed, not for income but for the benefit of himself or his family, if he had not been injured. (d) "Survivor's economic loss" means loss after decedent's death of contributions of things of economic value to his survivors, not including services they would have received from the decedent if he had not suffered the fatal injury, less expenses of the survivors avoided by reason of decedent's death. (e) "Survivor's replacement services loss" means expenses reasonably incurred by survivors after decedent's death in obtaining ordinary and necessary services in lieu of those the decedent would have performed for their benefit if he had not suffered the fatal injury, less expenses of the survivors avoided by reason of the decedent's death and not subtracted in calculating survivor's economic loss; (6) "Use of a motor vehicle" means any utilization of the motor vehicle as a vehicle including occupying, entering into, and alighting from it. It does not include: (a) Conduct within the course of a business of repairing, servicing, or otherwise maintaining motor vehicles unless the conduct occurs off the business premises; or (b) Conduct in the course of loading and unloading the vehicle unless the conduct occurs while occupying, entering into, or alighting from it; (7) "Motor vehicle" means any vehicle which transports persons or property upon the public highways of the Commonwealth, propelled by other than muscular power except road rollers, road graders, farm tractors, vehicles on which power shovels are mounted, such other construction equipment customarily used only on the site of construction and which is not practical for the transportation of persons or property upon the highways, such vehicles as travel exclusively upon rails, and such vehicles as are propelled by electrical power obtained from overhead wires while being operated within any municipality or where said vehicles do not travel more than five (5) miles beyond the said limits of any municipality. "Motor vehicle" shall not mean moped as defined in this section or an electric low-speed scooter as defined in KRS 189.010; (8) "Moped" means either a motorized bicycle whose frame design may include one (1) or more horizontal crossbars supporting a fuel tank so long as it also has pedals, or a motorized bicycle with a step-through type frame which may or may not have pedals rated no more than two (2) brake horsepower, a cylinder capacity not exceeding fifty (50) cubic centimeters, an automatic transmission not requiring clutching or shifting by the operator after the drive system is engaged, and capable of a maximum speed of not more than thirty (30) miles per hour; (9) "Public roadway" means a way open to the use of the public for purposes of motor vehicle travel; (10) "Net loss" means loss less benefits or advantages, from sources other than basic and added reparation insurance, required to be subtracted from loss in calculating net loss; (11) "Noneconomic detriment" means pain, suffering, inconvenience, physical impairment, and other nonpecuniary damages recoverable under the tort law of this Commonwealth. The term does not include punitive or exemplary damages; (12) "Owner" means a person, other than a lienholder or secured party, who owns or has title to a motor vehicle or is entitled to the use and possession of a motor vehicle subject to a security interest held by another person. The term does not include a lessee under a lease not intended as security; (13) "Reparation obligor" means an insurer, self-insurer, or obligated government providing basic or added reparation benefits under this subtitle; (14) "Survivor" means a person identified in KRS 411.130 as one entitled to receive benefits by reason of the death of another person; (15) A "user" means a person who resides in a household in which any person owns or maintains a motor vehicle; (16) "Maintaining a motor vehicle" means having legal custody, possession or responsibility for a motor vehicle by one other than an owner or operator; and (17) "Security" means any continuing undertaking complying with this subtitle, for payment of tort liabilities, basic reparation benefits, and all other obligations imposed by this subtitle. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 149, sec. 1, effective July 15, 2026. -- Amended 2019 Ky. Acts ch. 22, sec. 10, effective June 27, 2019. -- Amended 2000 Ky. Acts ch. 343, sec. 17, effective July 14, 2000. -- Amended 1982 Ky. Acts ch. 194, sec. 6, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 215, sec. 1, effective June 17, 1978; and ch. 349, sec. 12, effective June 17, 1978. -- Created 1974 Ky. Acts ch. 385, sec. 2, effective July 1, 1975. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 149, sec. 7, provides that the amendments to this statute in that Act apply to basic and added reparation benefits that are issued or renewed on or after July 15, 2026.

KRS 304.39-030 Right to basic reparation benefits

304.39-030. Right to basic reparation benefits (1) If the accident causing injury occurs in this Commonwealth every person suffering loss from injury arising out of maintenance or use of a motor vehicle has a right to basic reparation benefits, unless he has rejected the limitation upon his tort rights as provided in KRS 304.39-060(4). (2) If the accident causing injury occurs outside this Commonwealth but within the United States, its territories and possessions, or Canada, the following persons and their survivors suffering loss from injury arising out of maintenance or use of a motor vehicle have a right to basic reparation benefits: (a) Basic reparation insureds; (b) The driver and other occupants of a secured vehicle who have not rejected the limitation upon their tort rights, other than: 1. A vehicle, except for a vehicle as provided in paragraph (c) of this subsection, which is regularly used in the course of the business of transporting persons or property and which is one (1) of five (5) or more vehicles under common ownership; or 2. A vehicle owned by an obligated government other than this Commonwealth, its political subdivisions, municipal corporations, or public agencies; and (c) The driver and other occupants of a bus, who have not rejected the limitation upon their tort rights, are Kentucky residents, and boarded a bus in Kentucky, if the bus is: 1. A secured vehicle; 2. Registered in Kentucky; 3. Regularly used in the course of the business of transporting persons or property; and 4. One (1) of five (5) or more vehicles under common ownership. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 372, sec. 1, effective July 14, 2000. -- Created 1974 Ky. Acts ch. 385, sec. 3, effective July 1, 1975.

KRS 304.39-040 Obligation to pay basic reparation benefits -- Requirement of option for motorcycle coverage in liability contracts -- Exclusion of motorcycle operator or passenger who has not purchased optional coverage

304.39-040. Obligation to pay basic reparation benefits -- Requirement of option for motorcycle coverage in liability contracts -- Exclusion of motorcycle operator or passenger who has not purchased optional coverage (1) Basic reparation benefits shall be paid without regard to fault. (2) Basic reparation obligors and the assigned claims plan shall pay basic reparation benefits, under the terms and conditions stated in this subtitle, for loss from injury arising out of maintenance or use of a motor vehicl e. This obligation exists without regard to immunity from liability or suit which might otherwise be applicable. (3) Every insurer writing liability insurance coverage for motorcycles in this Commonwealth shall make available for purchase as a part of ever y policy of insurance covering the ownership, use, and operation of motorcycles the option of basic reparations benefits, added reparations benefits, uninsured motorist, and underinsured motorist coverages. (4) Notwithstanding any other provisions of this subtitle, no operator or passenger on a motorcycle is entitled to basic reparation benefits from any source for injuries arising out of the maintenance or use of such a motorcycle unless such reparation benefits have been purchased as optional coverage for the motorcycle or by the individual so injured. Effective: July 15, 1998 History: Amended 1998 Ky. Acts ch. 567, sec. 1, effective July 15, 1998. -- Amended 1976 Ky. Acts ch. 75, sec. 1 effective March 29, 1976. -- Created 1974 Ky. Acts ch. 385, sec. 4, effective July 1, 1975.

KRS 304.39-045 Exclusion from coverage as operator by agreement

304.39-045. Exclusion from coverage as operator by agreement In an automobile liability insurance policy, the insurer and the named insured may agree to exclude any member of the household not a spouse or dependent from coverage as the operator of an insured vehicle. The names of persons excluded shall be set forth in the policy or in an endorsement that is signed by both parties. Effective: July 13, 1990 History: Created 1990 Ky. Acts ch. 101, sec. 1, effective July 13, 1990.

KRS 304.39-047 Definitions for section -- Authority to exclude coverage for peer -to-peer car sharing -- Right of recovery

304.39-047. Definitions for section -- Authority to exclude coverage for peer -to-peer car sharing -- Right of recovery (1) As used in this section, the following have the same meaning as in KRS 365.520: (a) "Car sharing period"; (b) "Peer-to-peer car sharing program"; (c) "Shared vehicle"; (d) "Shared vehicle driver"; and (e) "Shared vehicle owner." (2) An authorized insurer that writes motor vehicle liability insurance in this state may exclude any and all coverage, and the duty to defend or indemnify for any claim afforded, under a shared vehicle owner's policy for accidents involving the shared vehicle that occur during a car sharing period, including but not limited to: (a) Security for payment of tort liabilities under KRS 304.39-110; (b) Uninsured motorist coverage under KRS 304.20-020; (c) Underinsured motorist coverage under KRS 304.39-320; (d) Basic reparation benefits as defined in KRS 304.39-020; (e) Medical payments coverage; (f) Comprehensive property damage coverage; and (g) Collision property damage coverage. (3) An insurer that defends or indemnifies a claim against a shared vehicle shall have the right to seek recovery against the insurer that issued a motor vehicle liability insurance policy under KRS 365.522(2) to the peer -to-peer car sharing program if: (a) The claim is made against the shared vehicle owner or shared vehicle driver for damages that result from an accident occurring during the car sharing period; and (b) Coverage for the claim is excluded under the terms of the insurer's policy. Effective: January 1, 2023 History: Created 2022 Ky. Acts ch. 153, sec. 12, effective January 1, 2023.

KRS 304.39-048 Authorized insurers -- Exclusions -- Defense of claims

304.39-048. Authorized insurers -- Exclusions -- Defense of claims (1) As used in this section, the following have the same meaning as in KRS 365.530: (a) "Delivery available period"; (b) "Delivery network driver"; and (c) "Delivery service period." (2) An authorized insurer that writes motor vehicle liability insurance in this state may exclude any and all coverage, and the duty to defend or indemnify, for any injury or loss that occurs during a delivery available period or delivery service per iod, including but not limited to: (a) Security for payment of tort liabilities under KRS 304.39 -110; (b) Uninsured motorist coverage under KRS 304.20-020; (c) Underinsured motorist coverage under KRS 304.39 -320; (d) Basic reparation benefits as defined in KRS 304.39-020; (e) Medical payments coverage; (f) Comprehensive property damage coverage; and (g) Collision property damage coverage. (3) A motor vehicle liability insurer that defends or indemnifies a claim against a delivery network driver shall have the right to seek recovery against the insurer providing coverage under KRS 365.532(1) and (2) if: (a) The claim occurs during a delivery ava ilable period or delivery service period; and (b) Coverage for the claim is excluded under the terms of the insurer's policy. Effective: January 1, 2025 History: Created 2024 Ky. Acts ch. 13, sec. 5, effective January 1, 2025. Legislative Research Commissi on Note (1/1/2025). 2024 Ky. Acts ch. 13, sec. 6, provides that this statute shall apply to motor vehicle liability insurance policies issued or renewed on or after January 1, 2025.

KRS 304.39-050 Priority of applicability of security for payment of basic reparation benefits

304.39-050. Priority of applicability of security for payment of basic reparation benefits (1) The basic reparation insurance applicable to bodily injury to which this subtitle applies is the security covering the vehicle occupied by the injured person at the time of the accident or, if the injured person is a pedestrian, the security covering the vehicle which struck such pedestrian. If the reparation obligor providing such insurance fails to make payment for loss within thirty (30) days after receipt of reasonable proof of the fact and the amount of loss sustained, the injured person shall be entitled to payment under any contract of basic reparation insurance under which he is a basic reparation insured and the insurer making such payments shall be entitled to full reimbursement from the reparation obligor providing the security covering the vehicle. A pedestrian, as used herein, means any person who is not making "use of a motor vehicle" at the time his injury occurs. (2) If there is no security covering the vehicle, any contract of basic reparation insurance under which the injured person is a basic reparation insured shall apply. (3) No person shall recover basic reparation benefits from more than one (1) reparation obligor as a result of the same accident, except as provided in KRS 304.39-140(4), nor in excess of ten thousand dollars ($10,000) as the result of the same accident. Effective: June 17, 1978 History: Amended 1978 Ky. Acts ch. 215, sec. 2, effective June 17, 1978. -- Created 1974 Ky. Acts ch. 385, sec. 5, effective July 1, 1975.

KRS 304.39-060 Acceptance or rejection of partial abolition of tort liability -- Exceptions

304.39-060. Acceptance or rejection of partial abolition of tort liability -- Exceptions (1) Any person who registers, operates, maintains or uses a motor vehicle on the public roadways of this Commonwealth shall, as a condition of such registration, operation, maintenance or use of such motor vehicle and use of the public roadways, be deemed to have accepted the provisions of this subtitle, and in particular those provisions which are contained in this section. (2) (a) Tort liability with respect to accidents occurring in this Commonwealth and arising from the ownership, maintenance, or use of a motor vehicle is "abolished" for damages because of bodily injury, sickness or disease to the extent the basic reparation benefits provided in this subtitle are payable therefor, or that would be payable but for any deductible authorized by this subtitle, under any insurance policy or other method of security complying with the requirements of this subtitle, except to the extent noneconomic detriment qualifies under paragraph (b) of this subsection. (b) In any action of tort brought against the owner, registrant, operator or occupant of a motor vehicle with respect to which security has been provided as required in this subtitle, or against any person or organization legally responsible for his or her acts or omissions, a plaintiff may recover damages in tort for pain, suffering, mental anguish and inconvenience because of bodily injury, sickness or disease arising out of the ownership, maintenance, operation or use of such motor vehicle only in the event that the benefits which are payable for such injury as "medical expense" or which would be payable but for any exclusion or deductible authorized by this subtitle exceed one thousand dollars ($1,000), or the injury or disease consists in whole or in part of permanent disfigurement, a fracture to a bone, a compound, comminuted, displaced or compressed fracture, loss of a body member, permanent injury within reasonable medical probability, permanent loss of bodily function or death. Any person who is entitled to receive free medical and surgical benefits shall be deemed in compliance with the requirements of this subsection upon a showing that the medical treatment received has an equivalent value of at least one thousand dollars ($1,000). (c) Tort liability is not so limited for injury to a person who is not an owner, operator, maintainer or user of a motor vehicle within subsection (1) of this section, nor for injury to the passenger of a motorcycle arising out of the maintenance or use of such motorcycle. (3) For purposes of this section and the provisions on reparation obligor's rights of reimbursement, subrogation, and indemnity, a person does not intentionally cause harm merely because his or her act or failure to act is intentional or done with the realization that it creates a grave risk of harm. (4) Any person may refuse to consent to the limitations of his or her tort rights and liabilities as contained in this section. Such rejection must be completed in writing or electronically in a form to be prescribed by the Department of Insurance and must have been executed and filed with the department at a time prior to any motor vehicle accident for which such rejection is to apply. Such rejection form shall affirmatively state in bold print that acceptance of this form of insurance denies the applicant the right to sue a negligent motorist unless certain requirements contained in the policy of insurance are met. Rejection by a person who is under legal disability shall be made on behalf of such person by his or her legal guardian, conservator, or natural parent. The failure of such guardian or a natural parent of a person under legal disability to file a rejection, within six (6) months from the date that this subtitle would otherwise become applicable to such person, shall be deemed to be an affirmative acceptance of all provisions of this subtitle. Provided, however, any person who, at the time of an accident, does not have basic reparation insurance but has not formally rejected such limitations of his or her tort rights and liabilities and has at such time in effect security equivalent to that required by KRS 304.39-110 shall be deemed to have fully rejected such limitations within meaning of this section for that accident only. (5) (a) Any rejection must be filed with the Department of Insurance and shall become effective on the date of its filing until revoked. Nothing in this section shall require a new rejection to be filed for each new motor vehicle policy issued; (b) Any rejection filed prior to June 30, 1980, shall be deemed to be effective from the date of its filing until revoked; and (c) Any revocation shall be in writing and shall become effective upon the date of its filing with the Department of Insurance. (6) Every insurance company when issuing an automobile policy to a resident of this Commonwealth must inform the buyer in writing in a form to be prescribed by the insurance commissioner of his or her right to reject the limitations of the tort rights and liabilities under this subtitle in the manner provided in subsections (4) and (7) of this section. (7) Any rejection shall result in the full retention by the individual of his or her tort rights and tort liabilities. Any person injured by a motor vehicle operator who has such rejection on file may claim the full damages, including nonpecuniary damages, or, if such injured person has not rejected his or her own tort limitations, he or she may also claim basic reparation benefits from the appropriate security on the vehicle as established under KRS 304.39-050. If such provider of security is other than the one providing security for the operator who has rejected the limitations, such provider shall be subrogated to the rights of the injured person to the extent of reparation benefits paid against the owner and operator of the vehicle. (8) No person who has rejected the tort limitations under this section, except as provided in subsection (9) of this section or KRS 304.39-140(5), may collect basic reparation benefits. (9) Any owner or operator of a motorcycle, as defined in Kentucky Revised Statutes, may file a rejection as described in subsections (4) and (5) of this section, which will apply solely to the ownership and operation of a motorcycle but will not apply to injury resulting from the ownership, operation or use of any other type of motor vehicle. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1525, effective July 15, 2010; and ch. 166, sec. 11, effective July 15, 2010. -- Amended 1986 Ky. Acts ch. 37, sec. 1, effective July 15, 1986. -- Amended 1980 Ky. Acts ch. 364, sec. 1, effective July 15, 1980. -- Amended 1976 Ky. Acts ch. 75, sec. 2, effective March 29, 1976. -- Created 1974 Ky. Acts ch. 385, sec. 6, effective July 1, 1975. Note: 1980 Ky. Acts ch. 396, sec. 92 would have amended this section effective July 1, 1982. However, 1980 Ky. Acts ch. 396 was repealed by 1982 Ky. Acts ch. 141, sec. 146, also effective July 1,1982. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 166, which do not appear to be in conflict and have been codified together.

KRS 304.39-070 "Secured person" -- Obligor's rights to recovery

304.39-070. "Secured person" -- Obligor's rights to recovery (1) "Secured person" means the owner, operator or occupant of a secured motor vehicle, and any other person or organization legally responsible for the acts or omissions of such owner, operator or occupant. (2) A reparation obligor which has paid or may become obligated to pay basic reparation benefits shall be subrogated to the extent of its obligations to all of the rights of the person suffering the injury against any person or organization other than a secured person. (3) A reparation obligor shall have the right to recover basic reparation benefits paid to or for the benefit of a person suffering the injury from the reparation obligor of a secured person as provided in this subsection, except as provided in KRS 304.39- 140(3). The reparation obligor shall elect to assert its claim (i) by joining as a party in an action that may be commenced by the person suffering the injury, or (ii) to reimbursement, pursuant to KRS 304.39-030, sixty (60) days after said claim has been presented to the reparation obligor of secured persons. The right to recover basic reparation benefits paid under (ii) shall be limited to those instances established as applicable by the Kentucky Insurance Arbitration Association as provided in KRS 304.39-290. (4) Any entitlement to recovery for basic or added reparation benefits paid or to be paid by the subrogee shall in no event exceed the limits of automobile bodily injury liability coverage available to the secured party after priority of entitlement as provided in this section and KRS 304.39-140(3) has been satisfied. (5) An attorney representing a secured person in any action filed under KRS 304.39- 060 shall be entitled to a reasonable attorneys' fee in the event that reparation benefits paid to said secured person by that secured person's reparation's obligor are reimbursed by any insurance carrier on behalf of a tortfeasor who is the defendant in any such action filed by the said secured person or in the event such potential "action" is settled by said potential tortfeasor's insurance carrier on his behalf prior to the filing of any such suit. Effective: June 17, 1978 History: Amended 1978 Ky. Acts ch. 215, sec. 4, effective June 17, 1978; and ch. 384, sec. 104, effective June 17, 1978. -- Created 1974 Ky. Acts ch. 385, sec. 7, effective July 1, 1975. Legislative Research Commission Note. This section was amended by two 1978 acts which do not appear to be in conflict and have been compiled together.

KRS 304.39-080 Security covering motor vehicle

304.39-080. Security covering motor vehicle (1) "Security covering the vehicle" is the insurance or other security so provided. The vehicle for which the security is so provided is the "secured vehicle." (2) "Basic reparation insurance" includes a contract, self-insurance, or other legal means under which the obligation to pay basic reparation benefits arises. (3) This Commonwealth, its political subdivisions, municipal corporations, and public agencies may continuously provide, pursuant to subsection (6) of this section, security for the payment of basic reparation benefits in accordance with this subtitle for injury arising from maintenance or use of motor vehicles owned by those entities and operated with their permission. (4) The United States and its public agencies and any other state, its political subdivisions, municipal corporation, and public agencies may provide, pursuant to subsection (6) of this section, security for the payment of basic reparation benefits in accordance with this subtitle for injury arising from maintenance or use of motor vehicles owned by those entities and operated with their permission. (5) Except for entities described in subsections (3) and (4) of this section, every owner or operator of a motor vehicle registered in this Commonwealth or operated in this Commonwealth with an owner's permission shall continuously provide with respect to the motor vehicle while it is either present or registered in this Commonwealth, and any other person may provide with respect to any motor vehicle, by a contract of insurance or by qualifying as a self-insurer, security for the payment of basic reparation benefits in accordance with this subtitle and security for payment of tort liabilities, arising from maintenance or use of the motor vehicle. The owner of a motor vehicle who fails to maintain security on a motor vehicle in accordance with this subsection shall have his or her motor vehicle registration revoked in accordance with KRS 186A.040 and shall be subject to the penalties in KRS 304.99-060. An owner who permits another person to operate a motor vehicle without security on the motor vehicle as required by this subtitle shall be subject to the penalties in KRS 304.99-060. (6) Security may be provided by a contract of insurance or by qualifying as a self- insurer or obligated government in compliance with this subtitle. (7) Self-insurance, subject to approval of the commissioner of insurance, is effected by filing with the commissioner in satisfactory form: (a) A continuing undertaking by the owner or other appropriate person to pay tort liabilities or basic reparation benefits, or both, and to perform all other obligations imposed by this subtitle; (b) Evidence that appropriate provision exists for prompt and efficient administration of all claims, benefits, and obligations provided by this subtitle; and (c) Evidence that reliable financial arrangements, deposits, or commitments exist providing assurance, substantially equivalent to that afforded by a policy of insurance, complying with this subtitle, for payment of tort liabilities, basic reparation benefits, and all other obligations imposed by this subtitle. (8) An entity described in subsection (3) or (4) of this section may provide security by lawfully obligating itself to pay basic reparation benefits in accordance with this subtitle. (9) A person providing security pursuant to subsection (7) of this section is a "self- insurer." An entity described in subsection (3) or (4) of this section that has provided security pursuant to subsection (6) of this section is an "obligated government." Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1526, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 38, sec. 1, effective June 26, 2007. -- Amended 2005 Ky. Acts ch. 152, sec. 1, effective June 20, 2005. -- Amended 1998 Ky. Acts ch. 442, sec. 3, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 341, sec. 6, effective July 15, 1996. -- Created 1974 Ky. Acts ch. 385, sec. 8, effective July 1, 1975.

KRS 304.39-083 Binder cancellation -- Notification to Department of Vehicle Regulation

304.39-083. Binder cancellation -- Notification to Department of Vehicle Regulation (1) If the owner of a motor vehicle has been issued a binder, or other contract for temporary insurance, for motor vehicle security and subsequently contacts the agent who issued the binder or other contract for temporary insurance to cancel the motor vehicle security before the agent has forwarded the person's application for a binder or other contract for temporary insurance to the insurance company, the agent shall immediately notify the Department of Vehicle Regulation that the owner has canceled the binder for motor vehicle security. (2) The agent notification required by subsection (1) of this section may be through verbal communication or written communication with the Department of Vehicle Regulation. The agent shall notify the department of the following information: (a) The name, address, and telephone number of the owner who canceled the binder or other contract for temporary insurance; (b) The name of the insurer who issued the binder or other contract for temporary insurance; (c) The year, make or model, and vehicle identification number of the motor vehicle on which the binder or other contract for temporary insurance was issued; (d) The date the binder or other contract for temporary insurance was issued; and (e) The date the binder or other contract for temporary insurance was canceled. The department shall respond to all agent notifications in writing confirming that an agent notified the department with the information required by this subsection. If the agent notifies the department verbally, the agent shall, within five (5) business days of the initial notification, send a letter to the department, setting forth the required information in writing. Effective: July 15, 1996 History: Created 1996 Ky. Acts ch. 341, sec. 9, effective July 15, 1996.

KRS 304.39-085 Notification by insurer to Department of Vehicle Regulation of persons insured whose policy was terminated -- Exception

304.39-085. Notification by insurer to Department of Vehicle Regulation of persons insured whose policy was terminated -- Exception (1) As used in this section, the following have the same meaning as in KRS 186A.040: (a) "Commercial motor vehicle"; (b) "Commercial motor vehicle insurance"; and (c) "Insurer." (2) Every insurer that does not provide access to insurance status information for commercial motor vehicles as specified by the Department of Vehicle Regulation under KRS 186A.040 shall, within one (1) calendar week following the end of its accounting month, send to the Department of Vehicle Regulation a list of all persons insured by it whose commercial motor vehicle insurance was terminated by either cancellation or nonrenewal during such accoun ting month, except those persons whose nonrenewal was at the end of a policy with a term of six (6) months or longer and who failed to make a payment for the renewal of the policy. Such list shall include a description of each vehicle insured under such te rminating policy. (3) An insurer may present the information required by subsection (2) of this section by compatible computer tape approved by the Department of Vehicle Regulation. Effective: June 27, 2025 History: Amended 2025 Ky. Acts ch. 39, sec. 9, ef fective June 27, 2025. -- Amended 2004 Ky. Acts ch. 130, sec. 4, effective July 13, 2004. -- Amended 1996 Ky. Acts ch. 341, sec. 7, effective July 15, 1996. -- Amended 1984 Ky. Acts ch. 129, sec. 2, effective January 1, 1985. -- Amended 1980 Ky. Acts ch. 269, sec. 1, effective July 15, 1980. -- Created 1978 Ky. Acts ch. 102, sec. 1, effective September 1, 1978.

KRS 304.39-087 Definition -- Submission of vehicle identification numbers and names of policyholders to Department of Vehicle Regulation -- Limitation of liability

304.39-087. Definition -- Submission of vehicle identification numbers and names of policyholders to Department of Vehicle Regulation -- Limitation of liability (1) (a) As used in this subsection, "personal motor vehicle" means: 1. A private passenger motor vehicle that is not used as a public or livery conveyance for passengers, nor rented to others; and 2. Any other four-wheel motor vehicle that weighs six thousand (6,000) pounds or less which is not used in the occupation, profession, or business of the insured. (b) Prior to January 1, 2027, every insurance company that writes liability insurance on personal motor vehicles in Kentucky shall, between the first and fifteenth day of each month, send to the Department of Vehicle Regulation a list of the vehicle identification numbers (VINs) of each personal motor vehicle covered by liability insurance issued by the insurer as of the last day of the preceding month and the name of each personal motor vehicle insurance policyholder. The information shall b e submitted either electronically or by paper copy at the option of the Department of Vehicle Regulation. (c) In the absence of malice, fraud, or gross negligence, an insurer and any authorized employee of the insurer shall not be subject to civil liabilit y for libel, slander, or any other relevant tort, and no civil cause of action of any nature shall arise against the insurer or authorized employee, for submission of the information required by this subsection, including submission of inaccurate or incomplete information. (2) Every insurer that provides coverage for the security required under KRS 304.39 - 080 for personal motor vehicles, as defined in KRS 186A.040, shall comply with KRS 186A.040. Effective: June 27, 2025 History: Amended 2025 Ky. Acts ch. 39, sec. 10, effective June 27, 2025. -- Created 2004 Ky. Acts ch. 130, sec. 1, effective July 13, 2004.

KRS 304.39-090 Required security

304.39-090. Required security An owner of a motor vehicle registered in this Commonwealth who ceases to maintain security as required by the provisions on security may not operate or permit operation of the vehicle in this Commonwealth until security has again been provided as required by this subtitle. An owner who fails to maintain security as required by this subtitle shall have his or her motor vehicle registration revoked in accordance with KRS 186A.040. All other owners shall provide such security while operating a motor vehicle in this Commonwealth. Effective: July 15, 1998 History: Amended 1998 Ky. Acts ch. 442, sec. 4, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 341, sec. 8, effective July 15, 1996. -- Created 1974 Ky. Acts ch. 385, sec. 9, effective July 1, 1975.

KRS 304.39-100 Included coverages

304.39-100. Included coverages (1) An insurance contract which purports to provide coverage for basic reparation benefits or is sold with representation that it provides security covering a motor vehicle has the legal effect of including all coverages required by this subtitle. (2) An insurer authorized to transact or transacting business in this Commonwealth shall file with the commissioner of insurance as a condition of its continued transaction of business within this Commonwealth a form approved by the commissioner of insurance declaring that in any contract of liability insurance for injury, wherever issued, covering the ownership, maintenance or use of a motor vehicle other than motorcycles while the vehicle is in this Commonwealth shall be deemed to provide the basic reparation benefits coverage and minimum security for tort liabilities required by this subtitle, except a contract which provides coverage only for liability in excess of required minimum tort liability coverage. Any nonadmitted insurer may file such form. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1527, effective July 15, 2010. -- Amended 1976 Ky. Acts ch. 75, sec. 3, effective March 29, 1976. -- Created 1974 Ky. Acts ch. 385, sec. 10, effective July 1, 1975.

KRS 304.39-110 Required minimum tort liability insurance

304.39-110. Required minimum tort liability insurance (1) The requirement of security for payment of tort liabilities is fulfilled by providing: (a) Either: 1. Split limits liability coverage of not less than twenty-five thousand dollars ($25,000) for all damages arising out of bodily injury sustained by any one (1) person, and not less than fifty thousand dollars ($50,000) for all damages arising out of bodily injury sustained by all persons injured as a result of any one (1) accident, plus liability coverage of not less than twenty-five thousand dollars ($25,000) for all damages arising out of damage to or destruction of property, including the loss of use thereof, as a result of any one (1) accident arising out of ownership, maintenance, use, loading, or unloading, of the secured vehicle; or 2. Single limits liability coverage of not less than sixty thousand dollars ($60,000) for all damages whether arising out of bodily injury or damage to property as a result of any one (1) accident arising out of ownership, maintenance, use, loading, or unloading, of the secured vehicle; (b) That the liability coverages apply to accidents during the contract period in a territorial area not less than the United States of America, its territories and possessions, and Canada; and (c) Basic reparation benefits as defined in KRS 304.39-020(2). (2) Subject to the provisions on approval of terms and forms, the requirement of security for payment of tort liabilities may be met by a contract the coverage of which is secondary or excess to other applicable valid and collectible liability insurance. To the extent the secondary or excess coverage applies to liability within the minimum security required by this subtitle it must be subject to conditions consistent with the system of required liability insurance established by this subtitle. (3) Security for a motorcycle is fulfilled by providing only the coverages set forth in subsections (1)(a) and (b) of this section. Effective:June 29, 2017 History: Amended 2017 Ky. Acts ch. 157, sec. 1, effective June 29, 2017. -- Amended 1986 Ky. Acts ch. 437, sec. 31, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 19, sec. 2, effective July 13, 1984; and ch. 86, sec. 1, effective July 13, 1984. -- Amended 1976 Ky. Acts ch. 75, sec. 4, effective March 29, 1976. -- Created 1974 Ky. Acts ch. 385, sec. 11, effective July 1, 1975. Legislative Research Commission Note (6/29/2017). 2017 Ky. Acts ch. 157, sec. 3 provided that amendments made to subsection (1) of this statute in 2017 Ky. Acts ch. 157, sec. 1 regarding the required minimum tort liability for motor vehicle damage to property shall apply to policies issued or renewed on or after January 1, 2018.

KRS 304.39-115 Limitation on claim of loss of use of motor vehicle

304.39-115. Limitation on claim of loss of use of motor vehicle Loss of use of a motor vehicle, regardless of the type of use, shall be recognized as an element of damage in any property damage liability claim. Such a claim for loss of use of a motor vehicle shall be limited to reasonable and necessary expenses for the time necessary to repair or replace the motor vehicle. Effective: July 15, 1988 History: Created 1988 Ky. Acts ch. 18, sec. 1, effective July 15, 1988.

KRS 304.39-117 Motor vehicle insurance card to be in paper or electronic format -- Presentation of electronic insurance card to peace officer. (Effective until January 1, 2027)

304.39-117. Motor vehicle insurance card to be in paper or electronic format -- Presentation of electronic insurance card to peace officer. (Effective until January 1, 2027) (1) Each insurer issuing an insurance contract which provides security coverin g a motor vehicle shall provide to the insured, in compliance with administrative regulations promulgated by the department, written proof in the form of an insurance card that the insured has in effect an insurance contract providing security in conformity with this subtitle. An insurer may provide an insurance card in either a paper or an electronic format. (2) If an owner enters into an insurance contract on a newly acquired motor vehicle, or changes insurance carriers on an existing motor vehicle, the o wner shall keep the paper insurance card or a portable electronic device to download the insurance card in his or her motor vehicle for forty-five (45) days from the date the coverage took effect as prima facie evidence that the required security is curren tly in full force and effect, and shall show the card to a peace officer upon request. (3) As to personal motor vehicles as defined in KRS 304.39 -087, the paper or electronic insurance card or the database created by KRS 304.39 -087 shall be evidence to a peace officer who requests the card if the peace officer has access to the database through AVIS. If AVIS does not list the vehicle identification number of the personal motor vehicle as an insured vehicle, the peace officer may accept a paper or electronic insurance card as evidence that the required security is currently in full force and effect on the personal motor vehicle if the card was effective no more than forty-five (45) days before the date on which the peace officer requests the card. (4) For purposes of this section: (a) An insurance card in an electronic format means the display of an image on any portable electronic device, including a cellular phone or any other type of portable electronic device, depicting a current valid representation of th e card; (b) Whenever a person presents a mobile electronic device pursuant to this section, that person assumes all liability for any damage to the mobile electronic device; and (c) When a person provides evidence of financial responsibility using a mobile electronic device to a peace officer, the peace officer shall only view the electronic image of the insurance card and is prohibited from viewing any other content on the mobile electronic device. Effective: July 15, 2014 History: Amended 2014 Ky. Acts ch. 10, sec. 1, effective July 15, 2014. -- Amended 2013 Ky. Acts ch. 83, sec. 1, effective June 25, 2013. -- Amended 2010 Ky. Acts ch. 24, sec. 1528, effective July 15, 2010. -- Amended 2004 Ky. Acts ch. 130, sec. 5, effective July 13, 2004. -- Created 1988 Ky. Acts ch. 348, sec. 1, effective July 15, 1988.

KRS 304.39-120 Calculation of net loss

304.39-120. Calculation of net loss (1) All benefits or advantages a person receives or is entitled to receive because of the injury from workers' compensation are subtracted in calculating net loss. (2) If a benefit or advantage received to compensate for loss of income because of injury, whether from basic reparation benefits or from any source of benefits or advantages subtracted under subsection (1), is not taxable income, the income tax saving that is attributable to his loss of income because of injury is subtracted in calculating net loss. Subtraction may not exceed fifteen percent (15%) of the loss of income and shall be in a lesser amount if the claimant furnishes to the insurer reasonable proof of a lower value of the income tax advantage. Effective: July 15, 1982 History: Amended 1982 Ky. Acts ch. 123, sec. 19, effective July 15, 1982. -- Created 1974 Ky. Acts ch. 385, sec. 12, effective July 1, 1975.

KRS 304.39-130 Basic weekly limit on benefits for certain losses

304.39-130. Basic weekly limit on benefits for certain losses Basic reparation benefits payable for work loss, survivor's economic loss, replacement services loss, and survivor's replacement services loss arising from injury to one (1) person and attributable to the calendar week during which the accident causing injury occurs and to each calendar week thereafter may not exceed five hundred dollars ($500), prorated for any lesser period. If the injured person's earnings or work are seasonal or irregular, the weekly limit shall be equitably adjusted or apportioned on an annual basis. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 149, sec. 2, effective July 15, 2026. -- Created 1974 Ky. Acts ch. 385, sec. 13, effective July 1, 1975. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 149, sec. 7, provides that the amendments to this statute in that Act apply to basic and added reparation benefits that are issued or renewed on or after July 15, 2026.

KRS 304.39-140 Optional additional benefits

304.39-140. Optional additional benefits (1) On and after July 1, 1975, each reparation obligor of the owner of a vehicle required to be registered in this Commonwealth shall, upon the request of a reparation insured, be required to provide added reparation benefits for economic loss in units of ten thousand dollars ($10,000) per person subject to the lesser of: (a) Forty thousand dollars ($40,000) in added reparation benefits; or (b) The limit of security provided for liability to any one (1) person in excess of the requirements of KRS 304.39-110(1)(a). (2) Each basic reparation obligor shall be permitted to incorporate in added reparation benefits coverage such terms, conditions and exclusions as may be consistent with premiums charged. The amounts payable under added reparation benefits may be duplicative of benefits received from collateral source benefits, or may provide for reasonable waiting periods, deductibles or coinsurance provision. The added reparation obligor shall be subrogated, subject to KRS 304.39-070 and 304.39-300, to the injured person's right of recovery against any responsible third party. (3) If the injured person, or injured persons, is entitled to damages under KRS 304.39- 060 from the liability insurer of a second person, a self-insurer or an obligated government, collection of such damages shall have priority over the rights of the subrogee for its reimbursement of basic or added reparation benefits paid to or in behalf of such injured person or persons. (4) Basic reparation insurers shall make available upon request deductibles in the amounts of two hundred fifty dollars ($250), five hundred dollars ($500) and one thousand dollars ($1,000) from all basic reparation benefits otherwise payable, except that if two (2) or more basic reparation insureds to whom the deductible is applicable under the contract of insurance are injured in the same accident, the aggregate amount of the deductible applicable to all of them shall not exceed the specified deductible, which amount where necessary shall be allocated equally among them. Any person who is a basic reparation insured under an insurance policy issued with no deductible or with a deductible of a lesser amount than that under which he receives basic reparation benefits payments, shall be entitled to be paid under such policy the difference between the benefits he is actually paid and the benefits which would have been paid had his benefits been payable under such policy. (5) Reparation obligors shall make available upon request to those persons who have rejected their tort limitations, in accordance with KRS 304.39-060(4), basic reparation benefits coverage and added reparation benefits. Effective: June 17, 1978 History: Amended 1978 Ky. Acts ch. 215, sec. 3, effective June 17, 1978. -- Created 1974 Ky. Acts ch. 385, sec. 14, effective July 1, 1975.

KRS 304.39-150 Approval of terms and forms

304.39-150. Approval of terms and forms Terms and conditions of contracts and certificates or other evidence of insurance coverage sold or issued in this Commonwealth providing motor vehicle tort liability, basic reparation, and added reparation insurance coverages, and of forms used by insurers offering these coverages, are subject to approval and regulation by the commissioner of insurance. The commissioner shall approve only terms and conditions consistent with the purposes of this subtitle and fair and equitable to all persons whose interests may be affected. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1529, effective July 15, 2010. -- Created 1974 Ky. Acts ch. 385, sec. 15, effective July 1, 1975.

KRS 304.39-160 Assigned claims

304.39-160. Assigned claims (1) A person entitled to basic reparation benefits because of injury covered by this subtitle may obtain them through the assigned claims plan established pursuant to the provisions relating thereto and in accordance with the provisions on time for presenting claims under the assigned claims plan if: (a) Basic reparation insurance is not applicable to the injury for a reason other than those specified in the provisions on converted vehicles and intentional injuries; (b) Basic reparation insurance applicable to the injury cannot be identified; (c) Basic reparation insurance applicable to the injury is inadequate to provide the contracted for benefits because of financial inability of a reparation obligor to fulfill its obligations; or (d) A claim for basic reparation benefits is rejected by a reparation obligor for a reason other than that the person is not entitled under this subtitle to the basic reparation benefits claimed. (2) If a claim qualifies for assignment under paragraphs (c) or (d) of subsection (1), the assigned claims bureau or any reparation obligor to whom the claim is assigned is subrogated to all rights of the claimant against any reparation obligor, its successor in interest or substitute, legally obligated to provide basic reparation benefits to the claimant, for basic reparation benefits provided by the assignee. (3) Except in case of a claim assigned under subsection (1)(d), if a person receives basic reparation benefits through the assigned claims plan, all benefits or advantages he receives or is entitled to receive as a result of the injury, other than by way of succession at death, death benefits from life insurance, or in discharge of familial obligations of support, are subtracted in calculating net loss. (4) A person who sustains injury while occupying a motor vehicle owned by such person and with respect to which security is required by the provisions on security and who fails to have such security in effect at the time of an accident in this Commonwealth causing such injury, shall not obtain through the assigned claims plan basic reparation benefits, including benefits otherwise due him as a survivor, unless such person's failure to have such security in effect at the time of such accident was solely occasioned by the failure of the reparation obligor of such person to provide the basic reparation benefits required by this subtitle. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 16, effective July 1, 1975.

KRS 304.39-170 Assigned claims bureau and plan

304.39-170. Assigned claims bureau and plan (1) Reparation obligors providing basic reparation insurance in this Commonwealth may organize and maintain, subject to approval and regulation by the commissioner of insurance, an assigned claims bureau and an assigned claims plan and adopt rules for their operation and for assessment of costs on a fair and equitable basis consistent with this subtitle. If they do not organize and continuously maintain an assigned claims bureau and an assigned claims plan in a manner considered by the commissioner of insurance to be consistent with this subtitle, the commissioner shall organize and maintain an assigned claims bureau and an assigned claims plan. Each reparation obligor providing basic reparation insurance in this Commonwealth shall participate in the assigned claims bureau and the assigned claims plan. Costs incurred shall be allocated fairly and equitably among the reparation obligors. (2) The assigned claims bureau shall promptly assign each claim and notify the claimant of the identity and address of the assignee of the claim. Claims shall be assigned so as to minimize inconvenience to claimants. The assignee thereafter has rights and obligations as if he or she had issued a policy of basic reparation insurance complying with this subtitle applicable to the injury or, in case of financial inability of a reparation obligor to perform its obligations, as if the assignee had written the applicable basic reparation insurance, undertaken the self- insurance, or lawfully obligated itself to pay reparation benefits. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1530, effective July 15, 2010. -- Created 1974 Ky. Acts ch. 385, sec. 17, effective July 1, 1975.

KRS 304.39-180 Time for presenting claims under assigned claims plan

304.39-180. Time for presenting claims under assigned claims plan (1) Except as provided in subsection (2), a person authorized to obtain basic reparation benefits through the assigned claims plan shall notify the bureau of his claim within the time that would have been allowed for commencing an action for those benefits if there had been identifiable coverage in effect and applicable to the claim. (2) If timely action for basic reparation benefits is commenced against a reparation obligor who is unable to fulfill his obligations because of financial inability, a person authorized to obtain basic reparation benefits through the assigned claims plan shall notify the bureau of his claim within six (6) months after discovery of the financial inability. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 18, effective July 1, 1975.

KRS 304.39-190 Converted motor vehicles

304.39-190. Converted motor vehicles A person who converts a motor vehicle is disqualified from basic or added reparation benefits, including benefits otherwise due him as a survivor, from any source other than an insurance contract under which the converter is a basic or added reparation insured, for injuries arising from maintenance or use of the converted vehicle. If the converter dies from the injuries, his survivors are not entitled to basic or added reparation benefits from any source other than an insurance contract under which the converter is a basic reparation insured. For the purpose of this section, a person is not a converter if he uses the motor vehicle in the good faith belief that he is legally entitled to do so. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 19, effective July 1, 1975.

KRS 304.39-200 Intentional injuries

304.39-200. Intentional injuries A person intentionally causing or attempting to cause injury to himself or another person is disqualified from basic or added reparation benefits for injury arising from his acts, including benefits otherwise due him as a survivor. If a person dies as a result of intentionally causing or attempting to cause injury to himself, his survivors are not entitled to basic or added reparation benefits for loss arising from his death. A person intentionally causes or attempts to cause injury if he acts or fails to act for the purpose of causing injury. A person does not intentionally cause or attempt to cause injury merely because his act or failure to act is intentional or done with his realization that it creates a grave risk of causing injury or if the act or omission causing the injury is for the purpose of averting bodily harm to himself or another person. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 20, effective July 1, 1975.

KRS 304.39-210 Obligor's duty to respond to claims

304.39-210. Obligor's duty to respond to claims (1) (a) Basic and added reparation benefits are payable monthly as loss accrues. (b) Loss accrues not when injury occurs, but as work loss, replacement services loss, or medical expense is incurred. (c) Benefits are overdue if not paid within thirty (30) days after the reparation obligor receives reasonable proof of the fact and amount of loss realized, unless the reparation obligor elects to accumulate claims for periods not exceeding thirty-one (31) days after the reparation obligor receives reasonable proof of the fact and amount of loss realized, and pays them within fifteen (15) days after the period of accumulation. (d) Notwithstanding any provision of this chapter to the contrary, benefits are not overdue if a reparation obligor has not made payment to a provider of services due to the request of a secured person when the secured person is directing the payment of benefits among the different elements of loss. (e) If reasonable proof is supplied as to only part of a claim, and the part totals one hundred dollars ($100) or more, the part is overdue if not paid within the time provided by this section. (f) Medical expense benefits may be paid by the reparation obligor directly to persons supplying products, services, or accommodations to the claimant, if the claimant so designates. (g) A reparation obligor shall not, in any event, pay a charge for a medical expense that exceeds the maximum fee permitted under KRS 304.39 - 020(5)(a)2. (h) 1. Except as provided in subparagraph 2. of this paragraph, a person providing a product, service, or accommodation shall submit a statement of the charge for the medical expense within one hundred eighty (180) days of the date the product, service, or accommodation is rendered. 2. Subparagraph 1. of this paragraph shall not apply to charges submitted pursuant to KRS 304.39-241. (i) A person providing a product, service, or accommodation shall not: 1. Knowingly collect, attempt to collect, coerce, or attempt to coerce, directly or indirectly, the payment of any charge for a medical expense covered by a reparation obligor that exceeds the maximum fee permitted under KRS 304.39-020(5)(a)2.; or 2. Cause the credit of any basic or added reparation insured to be impaired by reason of the insured's failure or refusal to pay the balance of any charge for a medical expense covered by a reparation obligor that exceeds the maximum fee permitted under KRS 304.39 -020(5)(a)2. (2) Overdue payments bear interest at the rate of twelve percent (12%) pe r annum, except that if delay was without reasonable foundation, the rate of interest shall be eighteen percent (18%) per annum. (3) (a) A claim for basic or added reparation benefits shall be paid without deduction for the benefits which are to be subtrac ted pursuant to the provisions on calculation of net loss if these benefits have not been paid to the claimant before the reparation benefits are overdue or the claim is paid. (b) The reparation obligor is entitled to reimbursement from the person obligated to make the payments or from the claimant who actually receives the payments. (4) (a) A reparation obligor may bring an action to recover benefits which are not payable, but are in fact paid, because of an intentional misrepresentation of a material fact, upon which the reparation obligor relies, by the insured or by a person providing an item of medical expense. (b) The action may be brought only against the person providing the item of medical expense, unless the insured has intentionally misrepresented the facts or knows of the misrepresentation. (c) An insurer may offset amounts he is entitled to recover from the insured under this subsection against any basic or added reparation benefits otherwise due. (5) (a) A reparation obligor who rejects a claim for basic reparation benefits shall give to the claimant prompt written notice of the rejection, specifying the reason. (b) If a claim is rejected for a reason other than that the person is not entitled to the basic reparation benefits claimed, the written notice shall inform the claimant that he may file his claim with the assigned claims bureau and shall give the name and address of the bureau. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 149, sec. 3, effective July 15, 2026. -- Amended 1998 Ky. Acts ch. 200, sec. 2, effective July 15, 1998. -- Created 1974 Ky. Acts ch. 385, sec. 21, effective July 1, 1975. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 149, sec. 7, provides that the amendments to this statute in that Act apply to basic and added reparation benefits that are issued or renewed on or after July 15, 2026.

KRS 304.39-215 Prohibition of referral to entity with which provider has financial relationship -- Reparations benefits

304.39-215. Prohibition of referral to entity with which provider has financial relationship -- Reparations benefits (1) As used in this section and in KRS 304.99-060: (a) "Compensation arrangement" has the same meaning as in 42 U.S.C. sec. 1395nn, as amended; and (b) "Health care provider" or "provider" means: 1. An individual who is licensed under KRS 309.353 or KRS Chapter 311, 311A, 311B, 312, 313, 314, 314A, 315, 319, 319A, 319B, 320, or 327 and who is not enrolled in the Kentucky Medicaid program; or 2. A medical laboratory, as defined in KRS 333.020, that is not enrolled in the Kentucky Medicaid program. (2) Except as otherwise provided in subsection (3) of this section: (a) If a health care provider, directly or indirectly, has either of the following financial relationships with a person or entity, the provider shall not make a referral to the person or entity for the furnishing of health care services for which payment may be made from basic or added reparation benefits provided under this subtitle: 1. An ownership or investment interest in the person or entity, whether through debt, equity, or other means; or 2. A compensation arrangement between the provider, directly or indirectly, and the person or entity; and (b) No person or entity shall present, cause to be presented, or collect payment on a claim or bill for health care services referred to the person or entity that the person or entity knows or should know is in violation of paragraph (a) of this subsection. (3) Any conduct or activity which is permitted by or protected under 42 U.S.C. sec. 1395nn(b) to (e), as amended, 42 U.S.C. sec. 1320a-7b(b)(3), as amended, or a federal regulation adopted under those sections, as amended, shall not be deemed to violate this section, and the conduct or activity shall be accorded the same protections allowed under these federal laws and regulations. (4) (a) No insurer shall be required to pay basic or added reparations benefits to a person or entity for health care services referred to that person or entity in violation of this section. (b) If a person or entity collects any amount in basic or added reparations benefits in violation of this section, the person or entity shall refund, on a timely basis, the amount collected. Effective: June 27, 2019 History: Created 2019 Ky. Acts ch. 143, sec. 4, effective June 27, 2019.

KRS 304.39-220 Fees of claimant's attorney

304.39-220. Fees of claimant's attorney (1) If overdue benefits are recovered in an action against the reparation obligor or paid by the reparation obligor after receipt of notice of the attorney's representation, a reasonable attorney's fee for advising and representing a claimant on a claim or in an action for basic or added reparation benefits may be awarded by the court if the denial or delay was without reasonable foundation. No part of the fee for representing the claimant in connection with these benefits is a charge against benefits otherwise due the claimant. (2) In any action brought against the insured by the reparation obligor, the court may award the insured's attorney a reasonable attorney's fee for defending the action. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 22, effective July 1, 1975.

KRS 304.39-230 Limitations of actions

304.39-230. Limitations of actions (1) If no basic or added reparation benefits have been paid for loss arising otherwise than from death, an action therefor may be commenced not later than two (2) years after the injured person suffers the loss and either knows, or in the exercise of reasonable diligence should know, that the loss was caused by the accident, or not later than four (4) years after the accident, whichever is earlier. If basic or added reparation benefits have been paid for loss arising otherwise than from death, an action for further benefits, other than survivor's benefits, by either the same or another claimant, may be commenced not later than two (2) years after the last payment of benefits. (2) If no basic or added reparation benefits have been paid to the decedent or his or her survivors, an action for survivor's benefits may be commenced not later than one (1) year after the death or four (4) years after the accident from which death results, whichever is earlier. If survivor's benefits have been paid to any survivor, an action for further survivor's benefits by either the same or another claimant may be commenced not later than two (2) years after the last payment of benefits. If basic or added reparation benefits have been paid for loss suffered by an injured person before his or her death resulting from the injury, an action for survivor's benefits may be commenced not later than one (1) year after the death or four (4) years after the last payment of benefits, whichever is earlier. (3) If timely action for basic reparation benefits is commenced against a reparation obligor and benefits are denied because of a determination that the reparation obligor's coverage is not applicable to the claimant under the provisions on priority of applicability of basic reparation security, an action against the applicable reparation obligor or the assigned claims bureau may be commenced not later than sixty (60) days after the determination becomes final or the last date on which the action could otherwise have been commenced, whichever is later. (4) Except as subsections (1), (2), or (3) of this section prescribe a longer period, an action by a claimant on an assigned claim which has been timely presented may be commenced not later than sixty (60) days after the claimant received written notice of rejection of the claim by the reparation obligor to which it was assigned. (5) If a person entitled to basic or added reparation benefits is under legal disability when the right to bring an action for the benefits first accrues, the period of his or her disability is a part of the time limited for commencement of the action. (6) An action for tort liability not abolished by KRS 304.39-060 may be commenced not later than two (2) years after the injury, or the death, or the date of issuance of the last basic or added reparation payment made by any reparation obligor, whichever later occurs. For the purposes of determining the date of issuance of the last basic or added reparation payment made by a reparation obligor, a replacement payment does not extend the date beyond the date of the original payment. For the purposes of this section, "replacement payment" means a payment in the same amount as the original payment, but which is issued as a replacement for the original payment for reasons including but not limited to the original payment being lost, stolen, or not delivered. A reparation obligor shall provide to a claimant or the claimant's attorney upon written request information on whether any payment is a replacement payment. Effective:June 29, 2017 History: Amended 2017 Ky. Acts ch. 34, sec. 4, effective June 29, 2017. -- Created 1974 Ky. Acts ch. 385, sec. 23, effective July 1, 1975.

KRS 304.39-240 Repealed, 1998

304.39-240. Repealed, 1998 Catchline at repeal: Assignment of benefits. History: Repealed 1998 Ky. Acts ch. 200, sec. 4, effective July 15, 1998 -- Created 1974 Ky. Acts ch. 385, sec. 24, effective July 1, 1975.

KRS 304.39-241 Insured's direction of payment of benefits among elements of loss -- Direction of payment to reimburse for medical expenses already paid

304.39-241. Insured's direction of payment of benefits among elements of loss -- Direction of payment to reimburse for medical expenses already paid An insured may direct the payment of benefits among the different elements of loss, if the direction is provided in writing to the reparation obligor. A reparation obligor shall honor the written direction of benefits provided by an insured on a prospective basis. The insured may also explicitly direct the payment of benefits for related medical expenses already paid arising from a covered loss to reimburse: (1) A health benefit plan as defined by KRS 304.17A-005(22); (2) A limited health service benefit plan as defined by KRS 304.17C-010; (3) Medicaid; (4) Medicare; or (5) A Medicare supplement provider. Effective: July 12, 2012 History: Amended 2012 Ky. Acts ch. 41, sec. 1, effective July 12, 2012. -- Created 1998 Ky. Acts ch. 200, sec. 3, effective July 15, 1998.

KRS 304.39-245 Reparation obligor's request for or negotiation of reduction or modification of charges

304.39-245. Reparation obligor's request for or negotiation of reduction or modification of charges A reparation obligor may request or negotiate a reduction or modification of charges from a provider of services to a secured person. In no event shall a provider of services which agrees to a reduction or modification of the charges bill the secured person for the amount of the reduction or modification. Nothing in this section is intended to prohibit a provider of services from billing charges to a secured party if the charges are not paid by a reparation obligor because the reparation benefits have been exhausted. Effective: July 15, 1998 History: Created 1998 Ky. Acts ch. 200, sec. 1, effective July 15, 1998.

KRS 304.39-250 Deduction and set-off

304.39-250. Deduction and set-off Except as otherwise provided in this subtitle, basic reparation benefits shall be paid without deduction or set-off. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 25, effective July 1, 1975.

KRS 304.39-260 Exemption of benefits

304.39-260. Exemption of benefits (1) Basic or added reparation benefits for medical expense are exempt from garnishment, attachment, execution, and any other process or claim, except upon a claim of a creditor who has provided products, services, or accommodations. (2) Basic reparation benefits other than those for medical expense are exempt from garnishment, attachment, execution, and any other process or claim. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 26, effective July 1, 1975.

KRS 304.39-270 Mental or physical examinations

304.39-270. Mental or physical examinations (1) If the mental or physical condition of a person is material to a claim for past or future basic or added reparation benefits, the reparation obligor may petition the circuit court for an order directing the person to submit to a mental or physical examination by a physician. Upon notice to the person to be examined and all persons having an interest, the court may make the order for good cause shown. The order shall specify the time, place, manner, conditions, scope of the examination, and the physician by whom it is to be made. (2) If requested by the person examined, the reparation obligor causing a mental or physical examination to be made shall deliver to the person examined a copy of a detailed written report of the examining physician setting out his findings including results of all tests made, diagnoses, and conclusions, and reports of earlier examinations of the same condition. By requesting and obtaining a report of the examination ordered or by taking the deposition of the physician, the person examined waives any privilege he may have, in relation to the claim for basic or added reparation benefits, regarding the testimony of every other person who has examined or may thereafter examine him respecting the same condition. This subsection does not preclude discovery of a report of an examining physician, taking a deposition of the physician, or other discovery procedures in accordance with any rule of court or other provision of law. This subsection applies to examinations made by agreement of the person examined and the reparation obligor, unless the agreement provides otherwise. (3) If any person refuses to comply with an order entered under this section the court may make any just order as to the refusal, but may not find a person in contempt for failure to submit to a mental or physical examination. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 27, effective July 1, 1975.

KRS 304.39-280 Disclosure of facts about injured person

304.39-280. Disclosure of facts about injured person (1) Upon request of a basic or added reparation claimant or reparation obligor, information relevant to a claim for basic or added reparation benefits shall be disclosed as follows: (a) An employer shall furnish a statement of the work record and earnings of an employee upon whose injury the claim is based. The statement shall cover the period specified by the claimant or reparation obligor making the request and may include a reasonable period before, and the entire period after, the injury. (b) The claimant shall deliver to the reparation obligor a copy of every written report, previously or thereafter made, relevant to the claim, and available to him, concerning any medical treatment or examination of a person upon whose injury the claim is based and the names and addresses of physicians and medical care facilities rendering diagnoses or treatment in regard to the injury or to a relevant past injury, and the claimant shall authorize the reparation obligor to inspect and copy relevant records of physicians and of hospitals, clinics, and other medical facilities. (c) A physician or hospital, clinic, or other medical facility furnishing examinations, services, or accommodations to an injured person in connection with a condition alleged to be connected with an injury upon which a claim is based, upon authorization of the claimant, shall furnish a written report of the history, condition, diagnoses, medical tests, treatment, and dates and cost of treatment of the injured person, and permit inspection and copying of all records and reports as to the history, condition, treatment, and dates and cost of treatment. (2) Any person other than the claimant providing information under this section may charge the person requesting the information for the reasonable cost of providing it. (3) In case of dispute as to the right of a claimant or reparation obligor to discover information required to be disclosed, the claimant or reparation obligor may petition the Circuit Court in the county in which the claimant resides for an order for discovery including the right to take written or oral depositions. Upon notice to all persons having an interest, the order may be made for good cause shown. It shall specify the time, place, manner, conditions, and scope of the discovery. To protect against annoyance, embarrassment, or oppression, the court may enter an order refusing discovery or specifying conditions of discovery and directing payment of costs and expenses of the proceeding, including reasonable attorney's fees. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 28, effective July 1, 1975.

KRS 304.39-290 Kentucky Insurance Arbitration Association -- Creation -- Membership -- Powers -- Duties

304.39-290. Kentucky Insurance Arbitration Association -- Creation -- Membership -- Powers -- Duties (1) There is created a nonprofit unincorporated legal entity to be known as the Kentucky Insurance Arbitration Association to provide a mechanism for the reimbursement, among reparation obligors of losses paid as basic or added reparation benefits, based solely on the law of torts without regard to subsections (1), (2), and (3) of KRS 304.39-060. (2) All basic reparation obligors shall be and remain members of the association as a condition of their authority to transact business in this Commonwealth. (3) The association shall perform its functions under a plan of operation established and approved under subsection (5) and shall exercise its powers through a board of directors established under subsection (4) hereof. (4) The board of directors of the association shall consist of not less than five (5) nor more than ten (10) persons serving terms as established in the plan of operation. They shall be selected by member obligors subject to the approval of the commissioner. If no members have been selected and approved prior to July 1, 1974, the commissioner shall appoint the initial members of the board. In approving selections to the board, the commissioner shall consider, among other things, whether all member obligors are fairly represented. Each member of the board shall designate qualified experienced claimspersons from the member's company, who upon approval by the commissioner, may serve as his or her alternates for the purpose of claims arbitration. (5) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary, or suitable to assure the fair, reasonable, and equitable administration of the association. The plan shall become effective upon approval in writing by the commissioner: (a) All reparation obligors shall comply with the provisions of the plan of operation; (b) The plan of operation shall: 1. Establish procedures whereby all the powers and duties of the association will be performed; 2. Establish minimum requirements for the initial submission of a case for reimbursement or arbitration; 3. Establish minimum requirements beneath which reimbursements shall not be made in order that there be fair allocation of significant losses and the elimination of unnecessary costs in the reimbursement mechanism; 4. Encourage voluntary reimbursement procedures between reparation obligors so that resort to arbitration shall be as infrequent as possible; 5. Recognize that fair allocation of loss between commercial and noncommercial motor vehicles may require different minimum requirements than when the loss is between two (2) or more noncommercial vehicles; 6. Establish regular places and times for meetings; 7. Establish procedures for records to be maintained on all cases presented for arbitration and dispositions thereof; 8. Establish procedures for compensation to reparation obligors for travel related expense and the fair value of the time devoted by their employees as a director or alternate in performance of duties for the association; 9. Establish procedures for adequately and equitably financing the cost of the association among members; and 10. Contain additional provisions necessary or proper for execution of the powers and duties of the association. (6) The association shall be subject to examination and regulation by the commissioner: (a) The board of directors shall submit to the commissioner, not later than March 30 of each year, a report on its activities for the preceding calendar year; (b) The board of directors shall promptly notify the commissioner whenever it appears that any member insurer has failed or refused to comply with an arbitration decision or has shown a protracted tendency to decline a significant number of meritorious claims presented to it prior to initiation of arbitration proceedings. (7) The association shall be exempt from payment of all fees, licenses, and taxes levied by this Commonwealth or any of its subdivisions except taxes on real or personal property. (8) There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the association or its agents or employees, the board of directors, or the commissioner or his or her representative for any action taken by them in the performance of their powers and duties under this section. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1531, effective July 15, 2010. -- Amended 1996 Ky. Acts ch. 326, sec. 2, effective July 15, 1996. -- Created 1974 Ky. Acts ch. 385, sec. 29, effective July 1, 1975.

KRS 304.39-300 Rules

304.39-300. Rules The commissioner may adopt rules to provide effective administration of this subtitle which are consistent with the purposes of this subtitle and fair and equitable to all persons whose interests may be affected. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1532, effective July 15, 2010. -- Created 1974 Ky. Acts ch. 385, sec. 30, effective July 1, 1975.

KRS 304.39-310 Certificate of coverage -- Rights and obligations of owner or registrant

304.39-310. Certificate of coverage -- Rights and obligations of owner or registrant (1) All reparation obligors shall be obligated to provide to a reparation insured or an insured person who has rejected his tort limitations as provided in KRS 304.39-060 a certificate or other evidence of insurance whenever coverage required by KRS 304.39-110 is issued or renewed upon policy anniversary date; (2) An owner or registrant of a motor vehicle with respect to which security is required under KRS 304.39-110, who fails to have such security when the motor vehicle is involved in an accident shall have all the rights and obligations of a reparation obligor, and any other reparation obligor which has paid or may become obligated to pay basic or added reparation benefits to an injured person under a basic or added reparation contract or under the terms of the assigned claims plan shall be subrogated to the rights of the injured person against such owner or registrant. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 31(2), (3), effective July 1, 1975.

KRS 304.39-320 Underinsured motorist coverage -- Effect of settlement of claims

304.39-320. Underinsured motorist coverage -- Effect of settlement of claims (1) As used in this section, "underinsured motorist" means a party with motor vehicle liability insurance coverage in an amount less than a judgment recovered against that party for damages on account of injury due to a motor vehicle accident. (2) Every insurer shall make available, upon request, to its insureds underinsured motorist coverage, whereby, subject to the terms and conditions of the coverage not inconsistent with this section, the insurance company agrees to pay its own insured for such uncompensated damages as he or she may recover on account of injury due to a motor vehicle accident because the judgment recovered against the owner of the other vehicle exceeds the liability policy limits thereon, to the extent of the underinsurance policy limits on the vehicle of the party recovering. (3) (a) If an injured person or, in the case of death, the personal representative, agrees to settle a claim with a liability insurer and its insured, and the settlement would not fully satisfy the claim for personal injuries or wrongful death so as to create an underinsured motorist claim, then written notice of the proposed settlement shall be submitted by certified or registered mail to all underinsured motorist insurers that provide coverage. (b) The underinsured motorist insurer then has a period of thirty (30) days to consent to the settlement or retention of subrogation rights. (c) An injured person, or in the case of death, the personal representative, may agree to settle a claim with a liability insurer and its insured for less than the underinsured motorist's full liability policy limits. (d) If an underinsured motorist insurer consents to settlement or fails to respond as required by subsection (4) of this section to the settlement request within the thirty (30) day period, the injured party may proceed to: 1. Execute a full release in favor of the underinsured motorist's liability insurer and its insured; and 2. Finalize the proposed settlement without prejudice to any underinsured motorist claim. (4) If an underinsured motorist insurer chooses to preserve its subrogation rights by refusing to consent to settle, the underinsured motorist insurer shall, within thirty (30) days after receipt of the notice of the proposed settlement, pay to the injured party the amount of the written offer from the underinsured motorist's liability insurer. Thereafter, upon final resolution of the underinsured motorist claim, the underinsured motorist insurer is entitled to seek subrogation against: (a) The liability insurer to the extent of its limits of liability insurance; and (b) The underinsured motorist for the amounts paid to the injured party. (5) (a) Except as provided in paragraph (b) of this subsection, the underinsured motorist insurer is entitled to a credit against total damages caused by or as a result of a motor vehicle accident in the amount of the limits of the underinsured motorist's liability policies in all cases to which this section applies, even if the settlement with the underinsured motorist under subsection (3) of this section or the payment by the underinsured motorist insurer under subsection (4) of this section is for less than the underinsured motorist's full liability policy limits. (b) If the full liability limits of the underinsured motorist's liability coverage are paid to multiple injured persons, including, in the case of death, the personal representative, pursuant to a reasonable settlement with the injured persons that is based on a pro rata distribution of the underinsured motorist's liability coverage in proportion to the injured persons' total damages, the credit to which the underinsured motorist insurer is entitled under paragraph (a) of this subsection shall be limited to the amount paid to the injured party. (c) This subsection shall not be construed to prohibit an underinsured motorist insurer from seeking to apply or enforce other credits or offsets against total damages which are: 1. Expressly included in the terms and conditions of the underinsured motorist coverage, subject to Kentucky law; or 2. Otherwise authorized under Kentucky law. Effective: April 2, 2024 History: Amended 2024 Ky. Acts ch. 27, sec. 4, effective April 2, 2024. -- Amended 1998 Ky. Acts ch. 564, sec. 1, effective July 15, 1998. -- Amended 1990 Ky. Acts ch. 103, sec. 2, effective December 1, 1990. -- Amended 1988 Ky. Acts ch. 180, sec. 1, effective July 15, 1988. -- Created 1974 Ky. Acts ch. 385, sec. 32, effective July 1, 1975. Legislative Research Commission Note (4/2/2024). 2024 Ky. Acts ch. 27, sec. 6, provides that amendments made to this statute in that Act shall apply to insurance policies issued or renewed on or after April 2, 2024.

KRS 304.39-330 Mandatory rate reduction

304.39-330. Mandatory rate reduction (1) The rates for bodily injury liability in the amounts specified in KRS 304.39-110 combined with the rates for uninsured motorists coverage in equal amounts and for basic reparation benefits coverage shall be reduced by each insurer by not less than ten percent (10%) as of the effective date of this subtitle from the rates in effect for each such insurer immediately prior to such date for bodily injury liability in the amounts specified in KRS 304.39-110 combined with the rates for uninsured motorists coverage and the rates charged for one thousand dollars ($1,000) per person medical expense coverage. Such reduced rates shall remain in effect for at least one (1) year, and thereafter shall not be increased without the approval of the commissioner after hearing. There shall be no exception to the requirements of this section unless the commissioner shall find that the use of such reduced rates required as to any insurer will result in rates which are inadequate under Chapter 304 of the Kentucky Revised Statutes. (2) The provisions of subsection (1) shall not apply to any policy covering a motor vehicle for which a person who would otherwise be a basic reparation insured has rejected the limitations upon his or her tort rights and liabilities in accordance with the provisions of KRS 304.39-060(4). Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1533, effective July 15, 2010. -- Created 1974 Ky. Acts ch. 385, sec. 33, effective July 1, 1975.

KRS 304.39-340 Unconstitutionality -- Invalidity -- Severability

304.39-340. Unconstitutionality -- Invalidity -- Severability (1) Except as provided in subsection (2), if any provisions of this subtitle or the application thereof to any person or circumstance is held to be unconstitutional or otherwise invalid, the remainder of this subtitle and the application of such provision to other persons or circumstances shall not be affected thereby, and it shall be conclusively presumed that the legislature would have enacted the remainder of this subtitle without such invalid or unconstitutional provision. (2) If the exemption from liability to pay damages in KRS 304.39-060 is held to be unconstitutional or invalid as respects substantial numbers of persons or circumstances, it shall be conclusively presumed that the legislature would not have enacted the remainder of the subtitle without such exemption and the entire subtitle shall be held invalid; provided, however, any or all of the exceptions to the liability exemption are severable and the invalidity of any or all of the exemptions shall not impair the validity of the remainder of the subtitle. Effective: July 1, 1975 History: Created 1974 Ky. Acts ch. 385, sec. 34, effective July 1, 1975.

KRS 304.39-350 Repealed, 1998

304.39-350. Repealed, 1998 Catchline at repeal: Commissioner's report on total payments made by insurers for personal injury accidents. History: Repealed 1998 Ky. Acts ch. 483, sec. 35, effective July 15, 1998. -- Created 1994 Ky. Acts ch. 39, sec. 3, effective July 15, 1994.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38757Fetched: 10/20/2026

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