HB 758 (BR 529) - T. Thompson
AN ACT relating to workers' compensation self-insured groups.
Amend various sections of Subtitle 50 of KRS Chapter 304, relating to workers' compensation self-insured groups to extend application of the subtitle to "bona fide" trade associations; clarify that minimum surplus exemption applies to a group operating under a plan approved by the executive director, or a remedial plan approved prior to August 3, 2004; provide that security deposit requirements are based on an audited rather than certified statement of financial condition; establish requirements for banks or trust companies for security deposits and require approval by the executive director; require a custodial bank or trust company to have capital and surplus of $25 million or more, except that those licensed and regulated in Kentucky shall have $10 million or more; permit the purchase of certificates of deposit from any duly chartered bank; allow investment in equity securities that are actively traded on any registered national securities exchanges; clarify that eligible securities include government bonds, United States Treasury notes and bills, other United States Government-guaranteed obligations, and "A" rated Kentucky tax-exempt obligations; specify that limits on investment instruments be based on the most recent quarterly or annual financial statement; require proof of specific excess insurance and aggregate excess insurance for ensuing year to be filed within ten days before the end of the self-insurance year, unless aggregate insurance is waived; require annual filing within 120 days of the end of the self-insured group's fiscal year; require a self-insured group to provide a statement of financial condition to a group member upon request; apply filing fee for both form and rate filings; exempt a group that has a fund balance of 40 percent or more of earned premiums from the requirement to purchase aggregate excess insurance coverage.
HB 758 - AMENDMENTS
HFA (1, T. Thompson) - Limit corporate bond investments of a workers' compensation self-insured group to 25 percent rather than 15 percent of the total market value of the investment portfolio; provide that of the aggregate investments made by trustees of self-insured groups not less than 50 percent rather than 75 percent of the total market value of the entire investment portfolio must be held in cash, cash equivalents, or certain securities and a minimum of 5 percent rather than 15 percent must be maintained in cash or cash equivalent accounts or US Treasury and Federal Agency Securities with a remaining maturity of 1 year or less; exempt a self-insured group from purchasing aggregate excess insurance if the group's fund balance is 30 percent rather than 40 percent or more of earned premiums.
Mar 4-introduced in House
Mar 5-to Banking & Insurance (H)
Mar 7-posted in committee
Mar 12-reported favorably, 1st reading, to Calendar
Mar 13-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Friday, March 14, 2008; floor amendment (1) filed
Mar 14-3rd reading, passed 91-0 with floor amendment (1)
Mar 17-received in Senate
Mar 25-to Economic Development, Tourism & Labor (S)
Mar 27-reported favorably, 1st reading, to Consent Calendar
Mar 28-2nd reading, to Rules
Apr 2-posted for passage in the Consent Orders of the Day for April 2, 2008; 3rd reading, passed 38-0; received in House
Apr 14-enrolled, signed by Speaker of the House
Apr 15-enrolled, signed by President of the Senate; delivered to Governor
Apr 24-signed by Governor (Acts Ch. 183)