Kentucky Tort Threshold: The $1,000 Test and the Right to Reject

By the FigureMyTax Editorial Team · How we calculate

In Kentucky you may recover damages for pain, suffering, mental anguish and inconvenience only if the benefits payable as medical expense exceed $1,000, or your injury consists in whole or in part of a listed permanent or serious injury, or death. You may reject the limitation on your tort rights in writing before an accident.

The tests

KRS 304.39-060(2)(b) lists them: medical expense benefits payable, or that would be payable but for any exclusion or deductible, exceed $1,000; or the injury or disease consists in whole or in part of permanent disfigurement, a fracture to a bone, a compound, comminuted, displaced or compressed fracture, loss of a body member, permanent injury within reasonable medical probability, permanent loss of bodily function, or death. A person entitled to free medical and surgical benefits meets the test by showing treatment of an equivalent value of at least $1,000.

What is abolished

Under subsection (2)(a), tort liability for bodily injury damages is abolished to the extent basic reparation benefits are payable, or would be payable but for a deductible, except for non-economic detriment that qualifies under the threshold. Subsection (2)(c) says tort liability is not limited for injury to a person who is not an owner, operator, maintainer or user of a motor vehicle, or to a motorcycle passenger.

The right to reject

Under subsection (4), any person may refuse to consent to the limitation of tort rights. The rejection must be completed in writing or electronically on a form prescribed by the Department of Insurance and filed with the department before the accident; the form states that accepting this form of insurance denies the right to sue a negligent motorist unless the policy's requirements are met. A rejection for a person under legal disability is made by a guardian, conservator or natural parent.

Recovery and subrogation

Section 304.39-070 makes a benefits insurer subrogated only against persons other than secured persons, and lets it recover from the insurer of a secured person only in the cases described there.

Fault

In tort actions involving fault of more than one party, the court has the jury state the damages each claimant would recover if fault were disregarded and each party's percentage of fault (KRS 411.182). We did not read the court decisions on how that reduces recovery. See Kentucky comparative negligence and Kentucky statute of limitations.

Using the calculator

The Kentucky no-fault calculator tests the $1,000 line, each injury and the choice to reject, and combines benefits with your claim. For how non-economic damages are valued, see Kentucky pain and suffering and economic vs. non-economic damages.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Kentucky's rules apply to your specific case with a licensed Kentucky attorney.