# 806 KAR 38:050: 806 KAR 38:050. Fiscal soundness of organization

> Kentucky · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C038_R050

## Section

- **Citation:** 806 KAR 38:050
- **Heading:** 806 KAR 38:050. Fiscal soundness of organization
- **Jurisdiction:** Kentucky
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Kentucky Administrative Regulations / Title 806 (Public Protection Cabinet - Department of Insurance) / Chapter 038 / 806 KAR 38:050

## Text

Section 1. Each health maintenance organization choosing to meet the financial requirements of KRS 304.38-070 by depositing with the commissioner through the Custodian of Insurance Securities, certificates of deposit, cash, or general obligations issued, assumed or guaranteed by the United States, shall maintain their said deposits at market value at least equal to their required amount of deposit. Any general obligations referred to herein shall be in bearer form. Section 2. The health maintenance organization shall pay into the Treasury of the Commonwealth, through the Department of the Commissioner of Insurance, its portion of the expense fund used in paying the custodian's salary, premium on his bond and other necessary expenses incident to the office used by the custodian. The portion of such expense fund to be paid by each company shall be in the same approximate proportion as the amount such company had on deposit on December 31 of the preceding year bears to the total of deposits with the Custodian of Insurance Securities as of December 31 of the preceding year. The executive director shall assess such company for its proportionate share of such expense fund. The minimum charge for each company shall be two (2) dollars.

## Nearby sections

- [806 KAR 38:010 806 KAR 38:010. Information required of applicants for certificate of authority](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C038_R010.md)
- [806 KAR 38:040 806 KAR 38:040. Financial projections; area overlapping](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C038_R040.md)
- [806 KAR 38:050 806 KAR 38:050. Fiscal soundness of organization](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C038_R050.md)
- [806 KAR 38:070 806 KAR 38:070. Health maintenance organization subscriber fee filings](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C038_R070.md)
- [806 KAR 38:080 806 KAR 38:080. Health maintenance organizations' reserve funds](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C038_R080.md)
- [806 KAR 38:100 806 KAR 38:100. Risk-based capital for health organizations](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C038_R100.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C038_R050. Check the current official text before relying on it. Not legal advice.