Who funds the Kentucky FAIR Plan?
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The Kentucky FAIR Plan is not funded by general state tax dollars. It is an association established under Kentucky law whose members are the private insurance companies licensed to write property insurance in the state. Claims and operating costs are paid primarily from the premiums its policyholders pay, along with reinsurance. If losses exceed the plan's resources, the shortfall is generally shared by member insurers through assessments based on their share of the Kentucky property insurance market. Compare private-market, specialty-market, and residual-market options with a licensed insurance agent.