KLC Insurance Initiative Headed for Final Passage

The Senate Banking and Insurance Committee sent House Bill 307 to Senate on Tuesday, where it could receive final passage this week. The committee unanimously approved the measure modernizing investment guidelines and options for liability and workers’ compensation self-insurance groups.

KLC Executive Director/CEO J.D. Chaney testified alongside Representative Bart Rowland (R-Tompkinsville). Rowland sponsored HB 307 to help stabilize future rates for members and ultimately assist the Office of Insurance in regulating insurance investments.

Rowland explained what groups found that made him aware of the legislation’s need. “They were handicapped by a decades-old statute that prohibits them from expanding their investments,” Rowland testified. “House Bill 307 is going to allow group self-insurance funds in Kentucky to better diversify and expand investment options and hopefully allow for better returns.”

Chaney stressed that several voices were involved in drafting the bill. “We did not do this in isolation,” he told the committee. “We worked with the Department of Insurance in crafting this language for reasonable safe investments.”

The committee voted to place the measure on the Senate consent calendar, which increases the chance that the Senate will give the bill final passage and send it to the governor.