806 KAR 39:040.
Governmental units excluded.
RELATES TO: KRS
AUTHORITY: KRS 304.2-110, 304.39-300
FUNCTION, AND CONFORMITY: KRS Chapter 304, Subtitle 39, requires all other
owners to either accept limitation on their tort rights and obligations or to
affirmatively reject such limitations, but in the case of governmental units
should take if they desire to become obligated governments.
Governmental units, as described in KRS 304.39-080(3) and (4), are not subject
to KRS Chapter 304, Subtitle 39, and need not take any affirmative action
thereunder unless, and until, by appropriate action, they elect to become
Section 2. Any
governmental unit, which by appropriate action elects to become an obligated
government, may meet its obligations by:
security by acquiring a contract of insurance, or
(2) By providing
security merely by obligating itself to pay basic reparation benefits in
accordance with KRS Chapter 304, Subtitle 39.
Section 3. Any
governmental unit purchasing a contract of insurance needs to do nothing
further to be an obligated government. However, if for any reason such
insurance should be terminated by the insurer, the insurer must give the
governmental unit not less than sixty (60) days notice prior to the termination
thereof, so that the governmental unit may take appropriate action either to
purchase other insurance, to withdraw from its obligation and duties under KRS
Chapter 304, Subtitle 39, or to become an obligated government by taking the
appropriate steps to lawfully obligate itself to pay basic reparation benefits.
Obligated governments who have not acquired a contract of insurance may have
rights and duties under KRS 304.39-290 and should make the appropriate contacts
with the Kentucky Arbitration Association in order that they may protect such
rights and duties. (1 Ky.R. 879; eff. 5-14-75.)