Kentucky Administrative Regulations
Title 702 - EDUCATION AND WORKFORCE DEVELOPMENT CABINET - BOARD OF EDUCATION, DEPARTMENT OF EDUCATION - OFFICE OF DISTRICT SUPPORT SERVICES
Chapter 3 - School Administration and Finance
Section 702 KAR 3:030 - Insurance requirements
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS Chapter 45A, 160.105
NECESSITY, FUNCTION, AND CONFORMITY: KRS 156.070(4) authorizes the Kentucky Board of Education to promulgate administrative regulations necessary for the efficient management, control, and operation of the schools and programs under its jurisdiction. KRS 156.070(5) requires the board to promulgate administrative regulations relating to programs, services, publications, capital construction and facility renovation, equipment, litigation, contracts, budgets, and all other matters which are the administrative responsibility of the Department of Education. KRS 160.105 requires the board to promulgate administrative regulation requiring each school district to provide for fire and extended insurance coverage on nonsurplus buildings, at not greater than replacement cost but allowing for coinsurance and deductible features. This administrative regulation establishes requirements for the level of insurance coverage needed for school district buildings and structures.
Section 1.
Section 2. Insurance on property specified in Section 1 of this administrative regulation shall be provided by carriers licensed to do business in the State of Kentucky and shall have features that provide for:
Section 3. A building requiring insurance and containing a steam boiler shall have boiler and machinery coverage having a limit of liability equal to the total value of the real and personal property in the building in which the steam boiler is located.
Section 4. A school district may cover property in a self-insurance pool providing coverage at least equal to the standard of coverage specified in Sections 2 and 3 of this administrative regulation. A self-insurance pool shall be adequately reinsured by a carrier approved to do business in the state of Kentucky and shall provide facilities for insuring all of the property of an individual district to which this administrative regulation applies.
Section 5. If a school building cannot be insured on a replacement cost basis, the policy insuring the building shall carry an agreed amount endorsement, and a certification signed by the local superintendent and board chairman shall be attached to the policy stating that it would not be fiscally responsible to provide replacement cost coverage for the building being insured.
Section 6. Insurance coverage provided for in Sections 2 and 3 of this administrative regulation shall be obtained by local school districts by bids after having advertised for bids, if bids are required by KRS Chapter 45A or 424.
STATUTORY AUTHORITY: KRS 156.070, 160.105, 324.045, Chapter 424