Ky. Rev. Stat. » Chapter 65
Kentucky Revised Statutes

Ky. Rev. Stat. § 65.150 (2026)

Expenditure of funds for liability or property insurance

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(1) A county or city or urban-county government and any board, commission, agency or authority of a county, city or urban-county government may expend funds necessary to insure any of its employees, officials and property against any liability or property damage arising out of an act or omission committed in the scope and course of performing legal duties.

(2) A county fee officer and his deputies and assistants may be insured pursuant to subsection (1) of this section, or the officer may expend excess fees to insure himself and his deputies and assistants against any liability arising out of an act or omission committed in the scope and course of performing legal duties.

(3) Any parties eligible to expend funds for insurance pursuant to this section may associate, pursuant to KRS 65.210 to 65.300, for the purpose of insuring themselves against any liability or property damage.

(4) An association of governmental units formed for the purpose of providing insurance to the participating members may act on behalf of and with the approval of the participating governmental units to borrow money and issue revenue bonds to fund the costs of providing the insurance. Revenue bonds issued pursuant to the authority granted in this subsection shall be issued in accordance with KRS 65.270. Effective: July 15, 1988 History: Amended 1988 Ky. Acts ch. 225, sec. 5, effective July 15, 1988; and ch. 309, sec. 1, effective July 15, 1988. -- Created 1979 (1st Extra. Sess.) Ky. Acts ch. 22, sec. 3, effective May 12, 1979. Legislative Research Commission Note. This section was amended by two 1988 acts which were identical and which have been compiled together.

Notes of Decisions
Cited in 6 cases, 1993–2017 · leading case: Reyes v. Hardin Cnty., 55 S.W.3d 337 (Ky. 2001).
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Reyes v. Hardin Cnty., 55 S.W.3d 337 (Ky. 2001). “In all of the cited cases, the applicable statute either authorized or required an immune entity to purchase a policy of liability insurance.”
Bd. of Trs. of the Kentucky Sch. Boards Ins. Trust v. Joseph N. Pope Jr Deputy Rehabilitator of the Kentucky Sch. Boards Ins. Trust Workers' Comp. Self-Ins. Fund, 528 S.W.3d 901 (Ky. 2017). “The specific self-insurance trust involved was the Kentucky All Lines Fund operated by the Kentucky Association of Counties authorized pursuant to KRS 65.150(3) under the authority of KRS 65.”
Franklin Cnty., Ky. v. Malone, 957 S.W.2d 195 (Ky. 1997). · cites it 16× “The Court of Appeals reversed in part and held that the sovereign immunity of the county had been waived to the extent of liability insurance purchased pursuant to KRS 65.150. The Court of Appeals also held that the action may proceed against the county and its officials in…”
Lee v. McCracken Cnty. Fiscal Court, 872 S.W.2d 88 (Ky. Ct. App. 1993). · cites it 5× “180, it failed to consider the language of KRS 65.150, which states in part: (1) A county or city or urban-county government and any board, commission, agency or authority of a county, city or urban-county government may expend funds necessary to insure any of its employees,…”
Bd. of Trs. of the Kentucky Sch. Boards Ins. Trust v. Joseph N. Pope Jr Deputy Rehabilitator of the Kentucky Sch. Boards Ins. Trust Workers' Comp. Self-Ins. Fund, No. 2015 SC 000664 (Ky. Oct. 24, 2017). “The-K~BIT Board's reliance upon Malone is misplaced; We are mindful that the instant case does not involve any claim of negligence or wrongdoing by a local public school board; the clain:i here is directly against the KSBIT Board s The specific self-insurance trust involved was…”
Mullins v. Stratton, 878 F. Supp. 1016 (E.D. Ky. 1995). “1993) (holding that “[w]e therefore, hold that by permitting a county to purchase comprehensive liability insurance, KRS 65.150 effectively allows a negligence action to be filed against the county____ Under the language of the statute, we believe it is clear that the…”
Ky. Rev. Stat. § 65.150(1): 2 cases
Reyes v. Hardin Cnty., 55 S.W.3d 337 (Ky. 2001). “In all of the cited cases, the applicable statute either authorized or required an immune entity to purchase a policy of liability insurance.”
Lee v. McCracken Cnty. Fiscal Court, 872 S.W.2d 88 (Ky. Ct. App. 1993). “180, it failed to consider the language of KRS 65.150, which states in part: (1) A county or city or urban-county government and any board, commission, agency or authority of a county, city or urban-county government may expend funds necessary to insure any of its employees,…”
Ky. Rev. Stat. § 65.150(3): 3 cases
Bd. of Trs. of the Kentucky Sch. Boards Ins. Trust v. Joseph N. Pope Jr Deputy Rehabilitator of the Kentucky Sch. Boards Ins. Trust Workers' Comp. Self-Ins. Fund, 528 S.W.3d 901 (Ky. 2017). “The specific self-insurance trust involved was the Kentucky All Lines Fund operated by the Kentucky Association of Counties authorized pursuant to KRS 65.150(3) under the authority of KRS 65.”
Franklin Cnty., Ky. v. Malone, 957 S.W.2d 195 (Ky. 1997). “The Court of Appeals reversed in part and held that the sovereign immunity of the county had been waived to the extent of liability insurance purchased pursuant to KRS 65.150. The Court of Appeals also held that the action may proceed against the county and its officials in…”
Bd. of Trs. of the Kentucky Sch. Boards Ins. Trust v. Joseph N. Pope Jr Deputy Rehabilitator of the Kentucky Sch. Boards Ins. Trust Workers' Comp. Self-Ins. Fund, No. 2015 SC 000664 (Ky. Oct. 24, 2017). “The-K~BIT Board's reliance upon Malone is misplaced; We are mindful that the instant case does not involve any claim of negligence or wrongdoing by a local public school board; the clain:i here is directly against the KSBIT Board s The specific self-insurance trust involved was…”
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