The Kentucky Insurance Arbitration Association (KIAA) was created by KRS 304.39-290 to provide a dispute resolution mechanism among reparation obligors (insurers, self-insurers or obligated governments) of losses paid as basic or added reparation benefits based on tort law without regard to KRS 304.39-060 (1), (2) and (3).

Basic reparation benefits include reimbursements for net loss suffered through injury arising out of the operation, maintenance or use of a motor vehicle.

All insurance companies, liability self-insurance groups and authorized self-insureds shall automatically become members of KIAA as a condition of their authority to transact business in Kentucky. Other persons, associations, organizations and agencies of government may become members of KIAA.

KIAA Arbitration Rules, Plan of Operation and other important information are available via the link under Related Documents.

The Plan of Operation, Article 4, includes the following, which is commonly referred to as the "PIP subrogation deductible,"

E. In order that there be fair allocation of significant losses, while at the same time eliminating the unnecessary costs in the handling and shifting of insignificant losses, no member shall make application for or be entitled to receive, and no arbitration award shall be made for damages paid or payable to the member reparations obligor for the first $1,000 in the aggregate of loss so paid arising from a single occurrence without regard to the number of persons to whom basic or added reparations benefits are paid or payable.