Kentucky Code § KRS 56.130

Insufficient amount in insurance fund
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(1) If there is not in the account of the Commonwealth's property and casualty insurance fund an amount sufficient to cover the damage, the State Treasurer shall debit the fund only with the amount actually to its credit at the time, and shall continue, subject to prior claims, to debit the fund by the amount of each ensuing credit to the fund, until the total damage is covered. (2) No payments shall be made on account of such damage to any agency of the state in excess of the amount debited against the fund at the time of payment.

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