Kentucky Revised Statutes Title XXV. Business and Financial Institutions § 304.44-050.Reinsurance agreement

(1) All insurers writing property insurance covering structures in this state shall enter into a reinsurance agreement with the administrator in which each insurer agrees to cede to the administrator one hundred percent (100%), up to the maximum total insured value established under KRS 304.44-030(1), of any subsidence insurance coverage issued and, in consideration of the ceding commission retained by the insurer, agrees to undertake adjustment of losses and payment of taxes and to absorb all other expenses of the insurer necessary for sale of policies and administration of the mine subsidence insurance program.

(3) Claims made under the provisions of the subtitle shall not be deemed to constitute a debt, liability, or obligation of the Commonwealth or any political subdivision thereof or a pledge of the faith and credit of the Commonwealth or any political subdivision except to the extent the fund has accumulated reserves from premiums, state or federal grants, investment income, or state appropriations.