Rates and Rating Organizations

KRS tit. XXV, ch. 304, subtit. 13

in effect

KRS 304.13-011 Definitions for subtitle

304.13-011. Definitions for subtitle As used in this subtitle, unless the context requires otherwise: (1) A "market" is the interaction between buyers and sellers consisting of a product market component and a geographic market component. A product market component consists of identical or readily substitutable products including but not limited to consideration of coverage, policy terms, rate classifications, and underwriting. A geographic market component is a geographical area in which buyers have a reasonable degree of access to insurance sales outlets. Determination of a geographic market component shall consider existing market patterns; (2) "Supplementary rating information" includes any manual or plan of rates, classification, rating schedule, minimum premium, policy fees, rating rules, or any other similar information needed to determine the applicable rate or premium. This shall include underwriting rules, but only to the extent necessary to determine the rate or premium that will be applicable to a risk should the insurer decide to provide coverage. This does not include guidelines that relate to the selection of those risks that are acceptable to an insurer; (3) "Supporting information" is the experience and judgment of the filer and the experience or data of other insurers or organizations relied on by the filer, the interpretation of any other data relied on by the filer, descriptions of methods used in making the rates, and any other information required to be filed by the commissioner; (4) "Personal risks" means homeowners, tenants, private passenger nonfleet automobiles, mobile homes, and other property and casualty insurance for personal, family, or household needs; (5) "Commercial risks" are any kinds of risks that are not personal risks; (6) "Joint underwriting" is a voluntary arrangement established to provide insurance coverage for a risk pursuant to which two (2) or more insurers jointly contract with the insured at a price and under policy terms agreed on between the insurers; (7) A "pool" is a voluntary arrangement, other than by a contract of reinsurance, established on a general and continuing basis pursuant to which two (2) or more insurers participate in the sharing of risks on a predetermined basis. A pool may operate through an association, syndicate or other pooling agreement; (8) A "residual market mechanism" is an agreement, either voluntary or mandated by law, involving participation by insurers in the equitable apportionment among them of insurance that may be afforded applicants who are unable to obtain insurance through ordinary methods; (9) An "advisory organization" is any entity, including its affiliates or subsidiaries, which either has two (2) or more member insurers or is controlled either directly or indirectly by two (2) or more insurers and which assists insurers in ratemaking related activities. Two (2) or more insurers having a common ownership or operating in this state under common management or control constitute a single insurer for purposes of this definition; (10) A "competitive market" is a market that has not been found to be noncompetitive pursuant to KRS 304.13-041 and for which no such order is in effect; (11) A "noncompetitive market" is a market for which there is an order in effect pursuant to KRS 304.13-041 that a reasonable degree of competition does not exist; (12) "Trending" is any procedure for projecting developed losses to the average date of loss, or premiums or exposures to the average date of writing, for the period during which the policies are to be effective; (13) "Expenses" are those portions of any rate attributable to acquisition, field supervision, and collection expenses, general expenses, and premium taxes, licenses, and fees; (14) "Profit" is the portion of any rate attributable to funds needed for growth, contingencies, and return to stockholders; (15) "Pure premium" means the loss cost per unit of exposure excluding all loss adjustment expenses; (16) "Classification system" or "classification" means the process of grouping risks with similar risk characteristics so that differences in cost may be recognized; (17) "Developed losses" means losses (including loss adjustment expenses) adjusted, using standard actuarial techniques, to their ultimate anticipated value; (18) "Experience rating" means a rating procedure utilizing past insurance experience of the individual policyholder to forecast future losses by measuring the policyholder's loss experience against the loss experience of policyholders in the same classification to produce a prospective premium credit, debit, or unity modification; (19) "Form provider" means a person who prepares, files, and distributes policy contract forms and endorsements and consults with members, subscribers, customers, or others relative to their use and application, but is not an advisory organization as defined in this subtitle; (20) "Loss adjustment expenses" means the expenses incurred by the insurer in the course of settling claims; (21) "Prospective loss costs" means that portion of a rate that does not include provisions for expenses (other than loss adjustment expenses) or profit, and are based on historical aggregate losses or output from simulation models and loss adjustment expenses adjusted through development to their ultimate value and projected through trending to a future point in time. Loss costs, derived in part or entirely upon output form simulation models, must be approved by the commissioner before they become effective; (22) "Rate" means the expected value of the future cost of insurance per exposure unit which accounts for the treatment of losses, expenses, and profit prior to any application of individual risk variations based on loss or expense considerations, but does not include minimum premium; (23) "Special assessments" means guaranty fund assessments, residual market mechanism assessments, and other similar assessments which are included in ratemaking. Special assessments shall not be considered as either expenses or losses. Additional charges collected by the insurer and returned to a governmental agency on behalf of an insured are not special assessments. Examples of these additional charges include, but are not limited to, the special fund charge for workers' compensation imposed by KRS Chapter 342, local government premium tax imposed by KRS 91A.080, and the Department of Revenue surcharge imposed by KRS Chapter 136; and (24) "Statistical agent" means an entity that has been licensed by the commissioner to collect statistics from insurers and provide reports developed from these statistics to the commissioner for the purpose of fulfilling the statistical reporting obligations of those insurers under this chapter. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1114, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 85, sec. 679, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 380, sec. 1, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 278, sec. 1, effective July 15, 1982.

KRS 304.13-021 Scope of KRS 304.13-011 to 304.13-161

304.13-021. Scope of KRS 304.13-011 to 304.13-161 KRS 304.13-011 to 304.13-161 apply to all types of insurance written on risks in this state by any insurer authorized under this chapter to do business in this state, except: (1) Life insurance; (2) Annuities; (3) Wet marine and transportation insurance; (4) Accident and health insurance; (5) Reinsurance; (6) Assessment or cooperative companies operating under the provisions of KRS Chapter 299; (7) Individual and group workers' compensation self-insurers; (8) Title insurance; and (9) Liability self-insurance groups. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 380, sec. 2, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 278, sec. 2, effective July 15, 1982.

KRS 304.13-031 Rate standards in noncompetitive market

304.13-031. Rate standards in noncompetitive market (1) In a noncompetitive market, rates shall be made in accordance with the following provisions: (a) Manual, minimum, class rates, rating schedules or rating plans, shall be made and adopted, except in the case of specific inland marine rates on risks specially rated; (b) Rates shall not be excessive, inadequate or unfairly discriminatory; (c) Due consideration shall be given: 1. To past and prospective loss experience within and outside this state; 2. To the conflagration and catastrophe hazards; 3. To a reasonable margin for underwriting profit and contingencies; 4. To dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers; 5. To past and prospective expenses both countrywide and those specially applicable to this state; 6. To all other relevant factors within and outside this state; and 7. In the case of fire insurance rates, consideration may be given to the experience of the fire insurance business during a period of not less than the most recent three (3) year period for which such experience is available; (d) The expense provisions included in the rates for use by any insurer or group of insurers shall reflect the requirements of the operating methods of any such insurer or group and its anticipated expenses, with respect to any kind of insurance or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable; (e) Risks may be grouped by classifications for the establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both. Such standards may measure any differences among risks which can be demonstrated to have a probable effect upon losses or expenses. Rates made in accordance with this section may be used subject to this subtitle. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 380, sec. 3, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 278, sec. 3, effective July 15, 1982.

KRS 304.13-041 Monitoring market competition

304.13-041. Monitoring market competition (1) A competitive market for any line of insurance is presumed to exist unless the commissioner, after a hearing, determines that a reasonable degree of competition does not exist in the market for such line and issues an order to that effect. Such an order shall expire no later than one (1) year after it is issued. In determining whether a reasonable degree of competition exists, the commissioner shall consider all relevant information pertaining to the market and the opportunities available to consumers in the market to acquire pricing and other consumer information, and to compare and obtain insurance from competing insurers. (2) The commissioner shall monitor the degree of competition in this Commonwealth. In doing so, the commissioner may utilize existing relevant information or may develop new relevant information. The activities may be conducted internally within the Department of Insurance, in cooperation with other state insurance departments, through outside contractors, or in any other appropriate manner. The relevant information in determining the competitiveness of a specific market may include the number of insurers actively engaged in providing coverage, market shares, and changes in market shares and ease of entry. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1115, effective July 15, 2010. -- Created 1982 Ky. Acts ch. 278, sec. 4, effective July 15, 1982.

KRS 304.13-051 Filing rates and rate information -- When filing becomes effective

304.13-051. Filing rates and rate information -- When filing becomes effective (1) In a competitive market, every insurer shall file with the commissioner rates and supplementary information to be used in this state for commercial risks as designated by the commissioner and for all personal risks. The rates and supplementary rate information shall be filed not later than fifteen (15) days after the date of first use of the rates, unless the commissioner finds after a hearing that an insurer's rates require closer supervision because of the insurer's financial condition. On a finding, rates for both personal and commercial risks, supplementary rate information, and supporting information shall be filed with the commissioner at least thirty (30) days before the effective date of the rates. An order shall expire no later than one (1) year after it is issued. (2) In a noncompetitive market, every insurer shall file with the commissioner all rates for that market, supplementary rate information, and supporting information at least thirty (30) days before the proposed effective date of the rates. On application of the filer, the commissioner may authorize an earlier effective date. (3) Any rate filing in effect at the time the commissioner determines that competition does not exist pursuant to KRS 304.13-041 shall be deemed to be effective until disapproved pursuant to the procedures and rating standards of this chapter. (4) Every insurer shall file with the commissioner all rating manuals and underwriting rules that it uses in this state not later than fifteen (15) days after they become effective. Manuals, rules, and guidelines must be adhered to until amended. The commissioner may exempt an insurer from filing supporting information if it files by reference, with or without deviation, to a filing which is in effect for another insurer or an advisory organization. (5) (a) No insurer shall place into effect any rates, manuals, or underwriting rules which it proposes to use pursuant to subsection (1) or (4) of this section if the rates, manuals or underwriting rules will result in an increase or decrease of more than twenty-five percent (25%) from the insurer's then existing rates for any classification of risks in any of its rating territories within a twelve (12) month period of time. (b) Any insurer which proposes to change its then existing rates, manuals, or underwriting rules so as to effectively increase or decrease the rates of any classification of risks within any rating territory more than twenty-five percent (25%) within a twelve (12) month period shall file all the rates and supplemental rating information which shall not become effective until approved by the commissioner. (6) Rates and supplemental rating information for a residual market mechanism shall not become effective until approved by the commissioner. (7) The commissioner shall review filings made in accordance with subsections (2), (5)(b), and (6) of this section as soon as reasonably possible after they have been made in order to determine whether they meet the applicable requirements of this chapter. Each filing shall be on file for a waiting period of thirty (30) days before it becomes effective, which period may be extended by the commissioner for an additional period not to exceed thirty (30) days if he or she gives written notice within the waiting period to the insurer which made the filing that additional time is needed for consideration of the filing. The commissioner may, when he or she deems it to be in the public interest, hold a public hearing on any filing before the filing becomes effective to determine whether the filing meets the requirements of this subtitle. In the event that a hearing is held under the provisions of this subsection, the waiting periods specified in this subsection shall not begin to run until thirty (30) days after the close of the hearing. The burden of establishing that the filing under consideration meets the requirements of this subtitle is on the insurer which makes the filing. A filing shall be deemed to meet the requirements of this subtitle unless disapproved by the commissioner within the waiting period or any extension thereof. (8) At any hearing concerning an increase in worker's compensation rates conducted pursuant to subsection (7), the commissioner may approve a rate other than one that has been proposed by the filer if it is justified by the evidence presented at the hearing. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1116, effective July 15, 2010. -- Amended 1994 Ky. Acts ch. 93, sec. 20, effective July 15, 1994. -- Amended 1988 Ky. Acts ch. 225, sec. 9, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 437, sec. 19, effective July 15, 1986. -- Created 1982 Ky. Acts ch. 278, sec. 5, effective July 15, 1982.

KRS 304.13-053 Filing procedures for rates for use after December 31, 1998

304.13-053. Filing procedures for rates for use after December 31, 1998 (1) Unless the commissioner enters an order pursuant to KRS 304.13-041 declaring workers' compensation to be a noncompetitive market, rates filed for use after December 31, 1998, shall be filed pursuant to KRS 304.13-051(1). (2) Notwithstanding the provisions of KRS 304.13-051 to the contrary, after December 31, 1998, no insurer providing workers' compensation insurance shall place into effect any rates, manuals, or underwriting rules for workers' compensation insurance which it proposes to use pursuant to KRS 304.13-051(1) or (4) if the rates, manuals, or underwriting rules will result in an increase or decrease of more than fifteen percent (15%) from the workers' compensation insurer's then-existing workers' compensation insurance rates for any classification of risks within a twelve (12) month period of time. (3) After December 31, 1998, any workers' compensation insurer which proposes to change its then-existing rates, manuals, or underwriting rules so as to effectively increase or decrease the rates of any classification of risks more than fifteen percent (15%) within a twelve (12) month period shall file all the rates and supplemental rating information which shall not become effective until approved by the commissioner pursuant to the provisions of KRS 304.13-051. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1117, effective July 15, 2010; and ch. 166, sec. 2, effective July 15, 2010. -- Created 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 49, effective December 12, 1996. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 166. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 166 which was last enacted by the General Assembly, prevails under KRS 446.250.

KRS 304.13-055 Reduction of rates effective upon filing

304.13-055. Reduction of rates effective upon filing With respect to any filing which, if approved, would result in a reduction of rates, the commissioner shall immediately order the proposed rates to be effective. If upon the commissioner's review of the filing or as a result of a public hearing it appears that the proposed rates should be further reduced, the commissioner may order the insurer or rating organization to show cause within thirty (30) days why such rates should not be further reduced in accordance with the order. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1118, effective July 15, 2010. -- Amended 1980 Ky. Acts ch. 187, sec. 4, effective July 15, 1980. -- Created 1978 Ky. Acts ch. 256, sec. 8, effective June 17, 1978.

KRS 304.13-057 Rates based on Kentucky experience

304.13-057. Rates based on Kentucky experience (1) Every insurer shall provide to the commissioner information to demonstrate to what extent the insurer's rates are based upon its Kentucky experience. (2) Every insurer shall provide to the commissioner information to demonstrate its compliance with the requirements contained in KRS 304.13-410 which requires workers' compensation rates to be based on the net experience of an employer policyholder who has selected a deductible policy as authorized by KRS 304.13- 400. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1119, effective July 15, 2010. -- Amended 1992 Ky. Acts ch. 446, sec. 4, effective July 14, 1992. -- Created 1988 Ky. Acts ch. 225, sec. 10, effective July 15, 1988.

KRS 304.13-058 Rate increases to apply prospectively

304.13-058. Rate increases to apply prospectively Notwithstanding any provision of this chapter or any other chapter of the Kentucky Revised Statutes or any rating manual or rule to the contrary, no workers' compensation rate increases shall be applied retroactively, but rather shall be applied only to policies with inception or renewal dates on or after the effective date of the rate increase. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 446, sec. 5, effective July 14, 1992.

KRS 304.13-061 Information that may support rate filing -- Administrative regulations on recording and reporting rates and other information

304.13-061. Information that may support rate filing -- Administrative regulations on recording and reporting rates and other information (1) The information furnished in support of a filing may include: (a) The experience or judgment of the insurer; (b) The insurer's interpretation of any statistical data it relies on; (c) The experience of other insurers; and (d) Any other relevant factors. (2) The commissioner may adopt reasonable administrative regulations for use by insurers to record and report to the commissioner their rates and other information determined by the commissioner to be necessary or appropriate for the administration of KRS 304.13-011 to 304.13-161, and the effectuation of its purposes. The commissioner may adopt reasonable administrative regulations to assure that the experience of all insurers is made available at least annually in such form and detail as is necessary to aid in determining whether rating systems comply with the standards set forth in this subtitle. The commissioner may designate one (1) or more advisory organizations or statistical agents to assist him or her in gathering, compiling, and reporting such information, which shall be a matter of public record. The scope of these rules may include the data which must be reported by insurers, definitions of data elements, the timing and frequency of statistical reporting by insurers, data quality standards, data edit and audit requirements, data retention requirements, reports to be generated by advisory organizations or statistical agents to fulfill the requirements of this section, and the timing of such reports. (3) The commissioner may promulgate administrative regulations for the interchange of data necessary for the application of rating plans. (4) In order to further uniform administration of rate regulatory laws, the commissioner and every insurer, advisory organization, and statistical agent may exchange information and experience data with insurance supervisory officials, insurers, and advisory organizations in other states and may consult with them with respect to the application of rating systems and the collection of statistical data. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1120, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 4, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 278, sec. 6, effective July 15, 1982.

KRS 304.13-063 Automobile liability and physical damage insurance provision for reduction in premium charges

304.13-063. Automobile liability and physical damage insurance provision for reduction in premium charges (1) Any schedule of rates or rating plan for automobile liability and physical damage insurance filed with the commissioner shall provide for an appropriate reduction in premium charges for a period of at least three (3) years and up to five (5) years for those insureds fifty-five (55) years of age and older who successfully complete a motor vehicle accident prevention course meeting standards set by the Transportation Cabinet or insureds of any age who complete a defensive driving course provided by the United States Armed Forces to members of the United States Armed Forces. The reduction in premium charges for members of the United States Armed Forces who complete a defensive driving course provided by the United States Armed Forces shall be actuarially sound. There shall, however, be no reduction in premiums for a self-instructed course or for a course which does not provide for classroom or field driving instruction for a minimum number of hours, to be determined by the Transportation Cabinet. (2) All insurance companies writing automobile liability and physical damage insurance in Kentucky shall allow an appropriate reduction in premium charges to all eligible persons subject to this section. (3) Upon successfully completing the approved course, each participant shall be issued by the course's sponsoring agency a certificate which shall be the basis of qualification for the discount on insurance. (4) Each participant shall take an approved course each five (5) years to continue to be eligible for the discount on insurance. (5) The Transportation Cabinet is hereby empowered to promulgate regulations setting standards for the motor vehicle accident prevention course described in subsection (1) of this section. (6) No discount shall be available under this section to those completing the prescribed motor vehicle accident prevention course under a court order as a result of a motor vehicle conviction. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1121, effective July 15, 2010. -- Amended 2006 Ky. Acts ch. 194, sec. 5, effective January 1, 2007. -- Amended 1998 Ky. Acts ch. 411, sec. 1, effective July 15, 1998. -- Amended 1988 Ky. Acts ch. 314, sec. 1, effective July 15, 1988. -- Created 1984 Ky. Acts ch. 51, sec. 1, effective July 13, 1984.

KRS 304.13-065 Premium reductions for motor vehicles equipped with antitheft device

304.13-065. Premium reductions for motor vehicles equipped with antitheft device For motor vehicle insurance rates, whether in a competitive market or a noncompetitive market, appropriate reductions in premium charges for comprehensive coverage shall be applied to those motor vehicles equipped with an antitheft device as provided in KRS 304.20-410. Effective: January 1, 2021 History: Amended 2020 Ky. Acts ch. 47, sec. 4, effective January 1, 2021. -- Amended 2010 Ky. Acts ch. 24, sec. 1122, effective July 15, 2010. -- Created 1986 Ky. Acts ch. 352, sec. 1, effective July 15, 1986.

KRS 304.13-071 Disapproval of rates and rate filings

304.13-071. Disapproval of rates and rate filings (1) Existing rates in a noncompetitive market may be disapproved pursuant to the rating standards of this chapter after a hearing. Rates that have been filed in a noncompetitive market but that have not become effective may be disapproved pursuant to the rating standards of this chapter without a hearing. However, any insurer whose rates have been disapproved without a hearing shall be given a hearing on a written request made within thirty (30) days after the disapproval order. Hearings conducted under authority of this section shall be conducted in accordance with KRS Chapter 13B. If a rate is disapproved, the commissioner shall issue a final order specifying the reasons for disapproval. Any party aggrieved by the final order of the commissioner may appeal as provided in KRS 304.2-370. The effect of a final order shall be stayed during the pendency of the appeal and the existing rate shall remain in effect until the final conclusion thereof. (2) At any hearing concerning an increase in worker's compensation rates conducted pursuant to subsection (1), the commissioner may approve a rate other than one that has been proposed by the filer if it is justified by the evidence presented at the hearing. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1123, effective July 15, 2010. -- Amended 1996 Ky. Acts ch. 318, sec. 233, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 93, sec. 21, effective July 15, 1994. -- Created 1982 Ky. Acts ch. 278, sec. 7, effective July 15, 1982.

KRS 304.13-075 Exceptions to insurer's use of credit information

304.13-075. Exceptions to insurer's use of credit information (1) An insurer that uses credit information shall, on written request from an applicant or an insured, provide reasonable exceptions to the insurer's rates, rating classifications, company or tier placement, or underwriting rules or guidelines for an applicant or insured who has experienced and whose credit information has been directly influenced by any of the following events: (a) Catastrophic event, as declared by the federal or state government; (b) Serious illness or injury, or serious illness or injury to an immediate family member; (c) Death of a spouse, child, or parent; (d) Divorce or involuntary interruption of legally owed alimony or support payments; (e) Identity theft; (f) Temporary loss of employment for a period of three (3) months or more, if it results from involuntary termination; (g) Military deployment overseas; or (h) Other events, as determined by the insurer. (2) If an applicant or insured submits a request for an exception as set forth in subsection (1) of this section, an insurer may: (a) Require the applicant or insured to provide reasonable written and independently verifiable documentation of the event; (b) Require the applicant or insured to demonstrate that the event had direct and meaningful impact on his or her credit information; (c) Require that the request be made no more than sixty (60) days from the date of the application for insurance or the policy renewal; (d) Grant an exception despite the applicant or insured not providing the initial request for an exception in writing; or (e) Grant an exception where the applicant or insured asks for consideration of repeated events or the insurer has considered this event previously. (3) An insurer shall not be considered in violation of any law or regulation relating to underwriting, rating, or rate filing as a result of granting an exception under this section. Nothing in this section shall be construed to provide an applicant or insured or other insured with a cause of action that does not exist in the absence of this section. (4) The insurer shall provide notice to applicants or insureds that reasonable exceptions are available and information about how they may inquire further. (5) Within thirty (30) days of the insurer's receipt of sufficient documentation of an event described in subsection (1) of this section, the insurer shall inform the applicant or insured of the outcome of his or her request for a reasonable exception. The communication shall be in writing or provided to an applicant in the same medium as the request. (6) For purposes of this section, "credit information" shall mean any credit-related information derived from a credit report, found on a credit report itself, or provided on an application for personal insurance. Information that is not credit-related shall not be considered credit information, regardless of whether it is contained in a credit report or in an application, or is used to calculate an insurance score. Effective: July 12, 2012 History: Created 2012 Ky. Acts ch. 116, sec. 5, effective July 12, 2012.

KRS 304.13-081 Filings open to inspection -- Consumer information system

304.13-081. Filings open to inspection -- Consumer information system (1) All rates, supplementary rate information, and supporting information filed under KRS 304.13-011 to 304.13-161 shall be open to public inspection at any reasonable time. Copies may be obtained by any person on request and on payment of a charge specified in Subtitle 4 of this chapter. (2) The commissioner shall utilize, develop, or cause to be developed a consumer information system that will provide and disseminate price and other relevant information on a readily available basis to purchasers of homeowners or private passenger insurance. The commissioner may utilize, develop, or cause to be developed a consumer information system which will provide and disseminate price and other relevant information on a readily available basis to purchasers of insurance for commercial risks and personal risks not otherwise specified in this section. Such activity may be conducted internally within the department, in cooperation with other state insurance departments, through outside contractors, or in any other appropriate manner. To the extent the commissioner considers necessary and appropriate, insurers, advisory organizations, statistical agents, and other persons or organizations involved in conducting the business of insurance in this state, to which this section applies, shall cooperate with the commissioner in the development and utilization of a consumer information system. The reasonable cost of developing a consumer information system shall be assessed against insurers subject to this chapter on an equitable basis. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1124, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 5, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 278, sec. 8, effective July 15, 1982.

KRS 304.13-091 License for advisory organization, statistical agent, or form provider -- Refusal to supply services -- Application for license -- Fees

304.13-091. License for advisory organization, statistical agent, or form provider -- Refusal to supply services -- Application for license -- Fees (1) No advisory organization, statistical agent, or form provider shall provide any otherwise permitted service, and no insurer shall utilize the services unless the organization has obtained a license pursuant to subsection (3) of this section. (2) No advisory organization, statistical agent, or form provider shall refuse to supply any services for which it is licensed in Kentucky to any insurer authorized to do business in Kentucky and offering to pay the fair and usual compensation for the services. (3) An advisory organization, statistical agent, or form provider applying for a license shall include with its application: (a) A copy of its constitution, charter, articles of organization, agreement, association or incorporation, bylaws, plan of operation, and any other rules or regulations governing the conduct of its business; (b) A list of its members, subscribers, and customers; (c) The name and address of one (1) or more residents of Kentucky upon whom notices, process affecting it, or orders of the commissioner may be served; (d) A statement showing its technical qualifications for acting in the capacity for which it seeks a license; (e) A biography of the ownership and management of the organization; and (f) Any other relevant information and documents that the commissioner may require. (4) Every organization which has applied for a license shall notify the commissioner of every material change in the facts or in the documents on which its application was based. Any amendment to a document filed under this section shall be filed at least thirty (30) days before it becomes effective. (5) If the commissioner finds that the applicant and the natural persons through whom it acts are competent, trustworthy, and technically qualified to provide the services proposed, and that all requirements of the law are met, he or she shall issue a license specifying the authorized activity of the applicant. The commissioner shall not issue a license if the proposed activity would tend to create a monopoly or to substantially lessen the competition in any market. At the request of the licensee, licenses issued under this section may be renewed on an annual basis. (6) Licenses issued pursuant to this section shall remain in effect for one (1) year unless: (a) The licensee fails to pay fees required by law for the continuance or renewal of its license; (b) The licensee withdraws from the state; or (c) The license is suspended or revoked. The commissioner may at any time, after a hearing to be conducted in accordance with the provisions of this chapter and KRS 304.2-310, revoke or suspend the license of an advisory organization, statistical agent, or form provider which does not comply with the requirements and standards of this chapter. (7) The commissioner shall by administrative regulation establish a written summary of information that shall be included in an application for licenses issued under this section. (8) Advisory organizations wishing to operate as statistical agents or form providers may be so authorized under their license as an advisory organization. A separate license is not required. (9) Each advisory organization, statistical agent, and form provider shall pay fees as required by KRS 304.4-010 for the application, continuance, or renewal of its license. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1125, effective July 15, 2010. -- Repealed and reenacted 2000 Ky. Acts ch. 380, sec. 6, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 278, sec. 9, effective July 15, 1982.

KRS 304.13-100 Excess rates

304.13-100. Excess rates Upon the written application of the insured, stating his or her reasons therefor, filed with and approved by the commissioner, a rate in excess of that provided by a filing otherwise applicable may be used on any specific risk. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1126, effective July 15, 2010. -- Amended 1980 Ky. Acts ch. 187, sec. 8, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 155, sec. 138, effective June 17, 1978. -- Created 1970 Ky. Acts ch. 301, subtit. 13, sec. 10, effective June 18, 1970.

KRS 304.13-111 Advisory organization or statistical agent activities prohibited

304.13-111. Advisory organization or statistical agent activities prohibited No advisory organization or statistical agent shall: (1) Make an agreement with an insurer or another advisory organization that has the purpose or effect of substantially lessening competition in an insurance market; or (2) After January 1, 1983, compile or distribute recommendations relating to rates that include profit or expenses, except loss adjustment expenses. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 380, sec. 7, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 278, sec. 10, effective July 15, 1982.

KRS 304.13-121 Authorized activities for advisory organizations

304.13-121. Authorized activities for advisory organizations Any advisory organization in addition to other activities not prohibited, is authorized, on behalf of its members and subscribers, to: (1) Collect statistical data from members, subscribers, or any other source; (2) Develop statistical plans including territorial and class definitions; (3) Prepare, file, and distribute prospective loss costs which may include provisions for special assessments. Loss costs, derived in part or entirely upon output form simulation models, must be approved by the commissioner before they become effective; (4) Prepare, file, and distribute manuals of rating rules, rating schedules, and other supplementary rating information that do not include final rates, expense provisions, profit provisions, or minimum premiums; (5) Prepare, file, and distribute factors, calculations, or formulas pertaining to classification, territory, increased limits, and other variables; (6) Distribute information that is required or directed to be filed with the commissioner; (7) Conduct research and on-site inspections in order to prepare classifications of public fire defenses, and to consult with public officials regarding public fire protection as it would affect members, subscribers and others; (8) Conduct research in order to discover, identify, and classify information relating to causes or prevention of losses; (9) Conduct research relating to the impact of statutory changes upon prospective loss costs and special assessments; (10) Prepare, file, and distribute policy forms and endorsements and consult with members, subscribers, and others relative to their use and application; (11) Conduct research and on-site inspections for the purpose of providing risk information relating to individual structures; (12) Conduct on-site inspections to determine rating classifications for individual insureds; (13) For workers' compensation insurance, establish a committee which may include insurance company representatives to review the determination of the rating classification for individual insureds and suggest modifications to the classification system, pursuant to KRS 304.13-167(1); (14) Collect, compile, and publish past and current prices of individual insurers, if such information is also made available to the public at a reasonable cost; (15) Collect and compile exposure and loss experience for the purpose of individual risk experience ratings; (16) File final rates, at the direction of the commissioner, for residual market mechanisms; and (17) Furnish any other services, as approved or directed by the commissioner, related to those enumerated in this section. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1127, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 8, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 278, sec. 11, effective July 15, 1982.

KRS 304.13-131 Insurer and advisory organization activities prohibited

304.13-131. Insurer and advisory organization activities prohibited (1) No insurer or advisory organization shall make any arrangement with any other insurer, advisory organization, or other person that has the purpose or effect of unreasonably restraining trade or unreasonably lessening competition in the business of insurance. (2) No insurer or advisory organization shall: (a) Attempt to monopolize, or combine, or conspire with any other person to monopolize an insurance market; or (b) Engage in a boycott, on a concerted basis, of an insurance market. (3) No insurer shall agree with any other insurer or with an advisory organization to mandate adherence to, or to mandate use of, any rate, prospective loss cost, rating plan, rating schedule, rating rule, policy or bond form, rate classification, rate territory, underwriting rule, survey, inspection or similar material, except as needed to facilitate the reporting of statistics to advisory organizations, statistical agents, or the commissioner. The fact that two (2) or more insurers, whether or not members or subscribers of an advisory organization, use consistently or intermittently the same rates, prospective loss cost, rating plans, rating schedules, rating rules, policy or bond forms, rate classifications, rate territories, underwriting rules, surveys, or inspections or similar materials is not sufficient in itself to support a finding that an agreement exists. (4) Two (2) or more insurers having a common ownership or operating in this state under common management or control may act in concert between or among themselves with respect to any matters pertaining to those activities authorized in this chapter as if they constituted a single insurer. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1128, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 13, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 278, sec. 12, effective July 15, 1982.

KRS 304.13-141 Examination of insurers, pools, advisory organizations, statistical agents, form providers, residual market, and joint underwriting organizations

304.13-141. Examination of insurers, pools, advisory organizations, statistical agents, form providers, residual market, and joint underwriting organizations (1) The commissioner may examine any insurer, pool, advisory organization, statistical agent, form provider, or residual market or joint underwriting mechanism as deemed necessary to ascertain compliance with this chapter. Any examination made by the commissioner or by examiners designated by the commissioner shall be at the expense of the organization examined as specified in Subtitle 2 of KRS Chapter 304. (2) Every insurer, pool, advisory organization, statistical agent, and residual market or joint underwriting mechanism shall maintain reasonable records, adapted to its method of operation, containing its experience or the experience of its members. Records shall include the statistics and other information used by it in its activities. The records shall be available at all reasonable times and at a reasonable location to enable the commissioner to determine whether the activities of an insurer, pool, advisory organization, statistical agent, residual market or joint underwriting mechanism are in compliance with this chapter. (3) In lieu of an examination, the commissioner may accept the report of an examination by the insurance supervisory official of another state, if the report is made pursuant to the laws of that state. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1129, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 14, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 278, sec. 13, effective July 15, 1982.

KRS 304.13-151 Insurer participation in pools, joint underwriting, joint reinsurance pools, and residual market mechanisms

304.13-151. Insurer participation in pools, joint underwriting, joint reinsurance pools, and residual market mechanisms (1) Notwithstanding KRS 304.13-131(2)(a), insurers participating in joint underwriting, joint reinsurance pools, or residual market mechanisms may, in connection with such activity, cooperate with each other in the making of rates, rating systems, policy forms, underwriting rules, surveys, inspections and investigations, the furnishing of loss and expense statistics or other information, or carrying on research. Joint underwriting, joint reinsurance pools, and residual market mechanisms shall not be deemed advisory organizations. (2) Except to the extent modified by this section, insurers, joint underwriting, joint reinsurance pool and residual market mechanism activities are subject to the provisions of this chapter. (3) Every pool shall file with the commissioner a copy of its constitution, bylaws, rules, and regulations governing its activities, and articles of incorporation, agreement, or association. It shall also file with the commissioner a list of its members and the name and address of a resident of this state on whom notices or orders of the commissioner or process may be served, and any changes in amendments or changes in the foregoing. (4) Any residual market mechanism, plan, or agreement to implement a residual market mechanism, and any changes or amendments in the plan shall be submitted in writing to the commissioner for consideration and approval, together with any other information as may be reasonably required. The commissioner shall approve only those agreements that he or she finds contemplates both the use of rates which meet the standards of this chapter and activities and practices, that are not unfair, unreasonable, or otherwise inconsistent with the provisions of this chapter. At any time after any agreements are in effect, the commissioner may review the practices and activities of the adherents to these agreements and if, after a hearing, the commissioner finds that any practice or activity is unfair or unreasonable, or is otherwise inconsistent with the provisions of this chapter, the commissioner may issue a written order to the parties and either require the discontinuance of these acts or revoke approval of any such agreement. (5) If the commissioner finds after a hearing that any activity or practice of an insurer participating in joint underwriting or a pool is unfair, is unreasonable, will tend to lessen competition in any market, or is otherwise inconsistent with the provisions or purposes of this chapter, an order may be issued requiring the discontinuance of the activity or practice. (6) As a condition of its authority under this chapter to transact casualty insurance (as defined in KRS 304.5-070) in this state, every insurer so authorized shall become and remain a signatory to the "Kentucky automobile insurance plan" as it is presently formulated or as it is hereafter amended with the approval of the commissioner. The "Kentucky automobile insurance plan" shall be deemed to be a mandated "residual market mechanism" as defined in KRS 304.13-011(8). Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1130, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 15, effective July 14, 2000. -- Amended 1986 Ky. Acts ch. 430, sec. 1, effective July 15, 1986. -- Created 1982 Ky. Acts ch. 278, sec. 14, effective July 15, 1982.

KRS 304.13-161 Review of application of rating system to an insured -- Appeal to commissioner -- Notification of review rights to workers' compensation insureds

304.13-161. Review of application of rating system to an insured -- Appeal to commissioner -- Notification of review rights to workers' compensation insureds (1) Every insurer or advisory organization shall provide within this state reasonable means whereby any person aggrieved by the application of its rating system may be heard on written request to review the manner in which the rating system has been applied. If the insurer or advisory organization grants the request, the review shall be conducted within ninety (90) days of receiving the request. If the insurer or advisory organization fails to grant or rejects a request within thirty (30) days, the aggrieved person may proceed in the same manner as if the review produced no change in the application of the rate. (2) Any party affected by the action made on the request for review may within thirty (30) days of written notice of action appeal to the commissioner for further review of the application of the rating system. The commissioner shall hold a hearing in accordance with KRS Chapter 13B on a showing of good cause. The commissioner may after the hearing issue a final order affirming, modifying, or reversing the action of the insurer or advisory organization. (3) For workers' compensation coverage, each insurer or agent shall notify in writing each insured at the time a workers' compensation insurance policy is issued or renewed on or after May 1, 1997, of the insured's rights afforded by this section. The written notice required in this subsection shall apply only to workers' compensation insurers and shall be provided in the manner and format prescribed through administrative regulations promulgated by the commissioner. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1131, effective July 15, 2010. -- Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 51, effective December 12, 1996. -- Amended 1996 Ky. Acts ch. 318, sec. 234, effective July 15, 1996. -- Created 1982 Ky. Acts ch. 278, sec. 15, effective July 15, 1982. Legislative Research Commission Note (12/12/96). In 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 51, a comma appeared after the word "issued" in the phrase "is issued or renewed on or after May 1, 1997," in subsection (3) of this statute. At other places where this same phrase appears in the Act, no comma appears at this point. See KRS 304.13-053(2) (sec. 49 of the Act) and 304.13-415(3) (sec. 52 of the Act). On its face, the result that would be caused by retaining this comma is illogical, and those involved in drafting this language have indicated that this result was not intended. It is a fundamental canon of construction "that the legislature [does] not intend an absurd result." Commonwealth, Central State Hospital v. Gray, Ky., 880 S.W.2d 557, 559 (1994); see also George v. Alcoholic Beverage Control Board, Ky., 421 S.W.2d 569 (1967). For these reasons, the specified comma in this statute has been omitted in codification as a manifest clerical or typographical error under KRS 7.136(1)(h).

KRS 304.13-163 Authorized activities for statistical agents

304.13-163. Authorized activities for statistical agents In addition to other activities not prohibited, any statistical agent is authorized, on behalf of its members and subscribers, to: (1) Develop statistical plans including territorial and class definitions; (2) Collect historical data from members, subscribers, or any other source; (3) Distribute information that is required or directed to be filed with the commissioner; (4) Collect, compile, and distribute past and current prices of individual insurers and publish such information; (5) Collect and compile exposure and loss experience for the purpose of individual risk experience ratings; and (6) Furnish any other services, as approved or directed by the commissioner, related to those enumerated in this section. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1132, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 380, sec. 9, effective July 14, 2000.

KRS 304.13-165 Information to be filed by advisory organization

304.13-165. Information to be filed by advisory organization (1) Every advisory organization shall file with the commissioner every statistical plan, all prospective loss costs, provisions for special assessments, and all supplementary rating information, and every change or amendment or modification of any of the foregoing proposed for use in Kentucky. Each filing shall be filed thirty (30) days before it becomes effective, which period may be extended by the commissioner for an additional period not to exceed thirty (30) days, if written notice is given within the initial thirty (30) day period to the advisory organization that additional time is needed for the consideration of the filing. The commissioner may, upon giving written notice to the advisory organization, request additional information that is needed to complete the review of the filing. If the commissioner requests such additional information prior to the filing becoming effective, the filing shall become effective thirty (30) days after the additional information is provided to the commissioner. (2) Upon written application by the advisory organization, the commissioner may authorize an earlier effective date. (3) All filings shall be subject to the provisions of KRS 304.13-081 and all other provisions of this chapter relating to filings made by insurers. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1133, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 380, sec. 10, effective July 14, 2000.

KRS 304.13-167 Workers' compensation insurers -- Uniform classification and experience rating systems -- Reporting -- Subclassifications, rating plans, and other variations from manual rules -- Credit for drug-free workplace program

304.13-167. Workers' compensation insurers -- Uniform classification and experience rating systems -- Reporting -- Subclassifications, rating plans, and other variations from manual rules -- Credit for drug-free workplace program (1) Every workers' compensation insurer shall adhere to a uniform classification system and uniform experience rating system filed with the commissioner by an advisory organization designated by the commissioner. (2) Every workers' compensation insurer shall report its experience in accordance with the statistical plans and other reporting requirements in use by an advisory organization designated by the commissioner. (3) A workers' compensation insurer may develop subclassifications of the uniform classification system upon which rates may be made. These subclassifications and their filing shall be subject to the provisions of this chapter applicable to filings generally. (4) A workers' compensation insurer may develop rating plans which identify loss experience as a factor to be used. These rating plans and their filing shall be subject to the provisions of this chapter applicable to filings generally. (5) The commissioner shall disapprove subclassifications, rating plans, or other variations from manual rules filed by a workers' compensation insurer if the insurer fails to demonstrate that the data thereby produced can be reported consistent with the uniform classification system and experience rating system and in such a fashion so as to allow for the application of experience ra ting filed by the advisory organization. (6) The commissioner shall approve rating plans for workers' compensation insurance that give specific identifiable consideration in the setting of rates to employers who implement a drug-free workplace program purs uant to administrative regulations adopted by the Department of Workers' Claims. The plans shall take effect January 1, 2008, shall be actuarially sound, and shall state the savings anticipated to result from such drug-free workplace programs. The credit shall be at least five percent (5%) unless the commissioner determines that five percent (5%) is actuarially unsound. The commissioner is also authorized to develop a schedule of premium credits for workers' compensation insurance for employers who have saf ety programs that contain certain criteria for safety programs. The commissioner shall consult with the commissioner of the Department of Workers' Claims in setting such criteria. A drug-free workplace credit under this subsection shall not be available to employers who receive a credit under KRS 304.13 -412 or KRS Chapter 351. Effective: April 9, 2026 History: Amended 2026 Ky. Acts ch. 61, sec. 15, effective April 9, 2026. -- Amended 2022 Ky. Acts ch. 236, sec. 109, effective July 1, 2022. -- Amended 2010 K y. Acts ch. 24, sec. 1134, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 93, sec. 3, effective March 23, 2007. -- Created 2000 Ky. Acts ch. 380, sec. 11, effective July 14, 2000.

KRS 304.13-169 Withholding information or giving false information

304.13-169. Withholding information or giving false information No person shall willfully withhold information which will affect the rates or premiums chargeable under this subtitle from, or knowingly give false or misleading information to, the commissioner, any statistical agent, any advisory organization, or any insurer. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1135, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 380, sec. 12, effective July 14, 2000.

KRS 304.13-171 Property or casualty insurance policy underwriting fee -- Requirement for prior approval

304.13-171. Property or casualty insurance policy underwriting fee -- Requirement for prior approval (1) Any policy fee as related to underwriting expenses for a property or casualty insurance contract, issued or renewed on or after July 14, 2000, by an agent licensed under KRS 304.9-085, shall be deemed fully earned. The fee shall only be collected if coverage is provided. (2) All fees referred to in subsection (1) of this section shall be submitted to the commissioner for prior approval. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1136, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 314, sec. 1, effective July 14, 2000.

KRS 304.13-320 Penalty for violation

304.13-320. Penalty for violation (1) The commissioner may suspend the license of any advisory organization or insurer which fails to comply with an order of the commissioner within the time limited by the order, or any extension thereof which the commissioner may grant. The commissioner shall not suspend the license of any advisory organization or insurer for failure to comply with an order until the time prescribed for an appeal therefrom has expired or if an appeal has been taken, until the order has been affirmed. The commissioner may modify or rescind a suspension at any time. (2) No penalty shall be imposed and no license shall be suspended or revoked except upon a final order of the commissioner, stating his or her findings made after a hearing conducted in accordance with KRS Chapter 13B. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1137, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 483, sec. 15, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 318, sec. 235, effective July 15, 1996. -- Amended 1982 Ky. Acts ch. 320, sec. 22, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 13, sec. 32, effective June 18, 1970.

KRS 304.13-335 Certain rates to be based on Kentucky experience

304.13-335. Certain rates to be based on Kentucky experience Rates for professional, commercial, and governmental liability insurance shall be based on Kentucky experience when actuarially credible. This section shall not apply to rates for motor vehicle liability insurance, workers' compensation insurance, and employers' liability insurance. Effective: July 15, 1988 History: Created 1988 Ky. Acts ch. 261, sec. 1, effective July 15, 1988.

KRS 304.13-340 Phase-out of Workers' Compensation Insurance Plan -- Transfer of insureds to Employers' Mutual Insurance Authority

304.13-340. Phase-out of Workers' Compensation Insurance Plan -- Transfer of insureds to Employers' Mutual Insurance Authority The Workers' Compensation Insurance Plan (KWCIP), a workers' compensation residual market mechanism, in existence by virtue of this subtitle, shall not write new policies or renew policies after September 1, 1995. The board of directors of the Employers' Mutual Insurance Authority, the commissioner of the Department of Workers' Claims, and the commissioner of the Department of Insurance shall develop a plan, which shall be reviewed by the Economic Development and Workforce Investment Committee and the Banking and Insurance Committee of the General Assembly, for the orderly and equitable phase-out of the KWCIP. All claims on workers' compensation assigned risk policies in effect or issued prior to September 1, 1995, shall be paid by the KWCIP. The plan developed shall include procedures for application and transfer of the insureds in the KWCIP to the authority, who shall be subject to the qualifications and conditions of coverage required in KRS 342.801 to 342.843 and this section. The authority shall not be liable for any liabilities or deficits incurred on assigned risk policies in effect or issued prior to September 1, 1995. Effective: June 29, 2021 History: Amended 2021 Ky. Acts ch. 124, sec. 2, effective June 29, 2021. -- Amended 2010 Ky. Acts ch. 24, sec. 1138, effective July 15, 2010. -- Created 1994 Ky. Acts ch. 181, sec. 60, effective April 4, 1994.

KRS 304.13-342 Property insurance for wind or hail coverage -- Certificate of compliance -- Premium discount or rate reduction -- Administrative regulations

304.13-342. Property insurance for wind or hail coverage -- Certificate of compliance -- Premium discount or rate reduction -- Administrative regulations (1) (a) All insurance companies writing property insurance for wind or hail coverage of any property located in Kentucky that has been certified as complying with the most recent version of any applicable FORTIFIED Home or FORTIFIED Multifamily construction standards published by the Insurance Institute for Business and Home Safety or a successor ent ity: 1. Shall provide a premium discount or rate reduction on the coverage if: a. The discount or reduction is actuarially justified; and b. There is sufficient and credible evidence of cost savings that can be attributed to the construction standards; and 2. May provide: a. A premium discount or rate reduction on the coverage in accordance with any standard discount amounts, targets, or benchmarks established under subsection (3) of this section; and b. Any other adjustment on the coverage. (b) A premium discount, rate reduction, or other adjustment provided under paragraph (a) of this subsection shall be subject to the rate filing and other applicable regulatory requirements of this chapter, including but not limited to KRS 304.13-051. (2) (a) As used in this subsection, "certificate of compliance" means a certificate of compliance with the most recent version of any applicable FORTIFIED Home or FORTIFIED Multifamily construction standards from the Insurance Institute for Business and Home Safety or a successor entity. (b) An insurer that offers a premium discount, rate reduction, or other adjustment under subsection (1)(a) of this section shall provide the discount, reduction, or adjustment on the coverage of an insured's property located in Ken tucky if the insurer obtains or receives a certificate of compliance for the property. (c) An insurer is not required to obtain or receive a certificate of compliance in order to provide a premium discount, rate reduction, or other adjustment under subsection (1)(a) of this section. (3) (a) The commissioner may promulgate administrative regulations in accordance with KRS Chapter 13A that establish standard discount amounts, targets, or benchmarks for the coverage of any property located in Kentucky that has been certified as complying with the most recent version of any applicable FORTIFIED Home or FORTIFIED Multifamily construction standards published by the Insurance Institute for Business and Home Safety or a successor entity. (b) Any standard discount amounts, targets, or benchmarks promulgated under paragraph (a) of this subsection shall be: 1. Optional; and 2. Primarily for the benefit of insurers that are unable to obtain actuarially valid data to provide a premium discount or rate reduction under subsection (1)(a)1. of this section due to inadequate resources or experience. (c) The authority granted to the commissioner to promulgate administrative regulations under this subsection shall be in addition to any other authority granted to the commissioner to promulgate administrative regulations, including but not limited to KRS 304.2-110. Effective: July 15, 2024 History: Created 2024 Ky. Acts ch. 102, sec. 2, effective July 15, 2024. Legislative Research Commission Note (7/15/2024). 2024 Ky. Acts ch. 102, sec. 5, provides that this statute shall apply to insurance policies and contracts issued or renewed on or after March 1, 2026. Legislative Research Commission Note (7/15/2024). 2024 Ky. Acts ch. 102, sec. 6, reads as follows: "Property insurers subject to Section 2 [this statute] or 3 [KRS 304.13-346] of this Act, or both, shall make any filings and comply with any other regulatory requirements required under KRS 304.14-120, 304.13-051, and any other law, that are necessary to ensure that: (1) Any premium discount or rate reduction required under subsection (1)(a)1. of Section 2 of this Act [this statute]; and (2) The optional rider, endorsement, or supplemental policy provision required under subsection (2) of Section 3 of this Act [KRS 304.13-346]; is offered on insurance policies and contracts issued or renewed on or after March 1, 2026." Legislative Research Commission Note (7/15/2024). 2024 Ky. Acts ch. 102, sec. 7, provides that the Act, which created this statute, may be cited as the Strengthen Kentucky Homes Act.

KRS 304.13-346 Definitions for section -- Optional rider to be offered to upgrade non - FORTIFIED single-family dwellings

304.13-346. Definitions for section -- Optional rider to be offered to upgrade non - FORTIFIED single-family dwellings (1) As used in this section: (a) "Cost to upgrade the single-family dwelling" means the cost required to upgrade the roof structure of the single-family dwelling to meet or exceed the most recent version of the FORTIFIED Home roof structure construction standards published by the Insurance Institute for Business and Home Safety or a successor entity; and (b) "Non-FORTIFIED dwelling" means a dwelling whose roof structure does not comply with the most recent version of the FORTIFIED Home roof structure construction standards published by the Insurance Institute for Business and Home Safety or a successor entity. (2) All insurance companies writing property insurance for personal risks that provides coverage of any single-family dwelling located in Kentucky that is a non - FORTIFIED dwelling shall offer an optional rider, endorsement, or supplemental policy provision that provides the insured a right to receive claim payments for the cost to upgrade the single -family dwelling for any claim that: (a) Is covered under the insurance policy or contract; and (b) Requires replacement of the covered dwelling's roof as defined by the insurance policy or contract. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 22, effective July 15, 2026. -- Created 2024 Ky. Acts ch. 102, sec. 3, effective July 15, 2024. Legislative Research Commission Note (7/15/2024). 2024 Ky. Acts ch. 102, sec. 5, provides that this statute shall apply to insurance policies and contracts issued or renewed on or after March 1, 2026. Legislative Research Commission Note (7/15/2024). 2024 Ky. Acts ch. 102, sec. 6, reads as follows: "Property insurers subject to Section 2 [KRS 304.13-342] or 3 [this statute] of this Act, or both, shall make any filings and comply with any other regulatory requirements required under KRS 304.14-120, 304.13-051, and any other law, that are necessary to ensure that: (1) Any premium discount or rate reduction required under subsection (1)(a)1. of Section 2 of this Act [KRS 304.13-342]; and (2) The optional rider, endorsement, or supplemental policy provision required under subsection (2) of Section 3 of this Act [this statute]; is offered on insurance policies and contracts issued or renewed on or after March 1, 2026." Legislative Research Commission Note (7/15/2024). 2024 Ky. Acts ch. 102, sec. 7, provides that the Act, which created this statute, may be cited as the Strengthen Kentucky Homes Act.

KRS 304.13-350 Functions of commissioner

304.13-350. Functions of commissioner The commissioner shall review, approve, and hear appeals on the assignment, reassignment, or modification of any fire protection classification of any fire protection district, municipality, or locality in the state which is made by any lawful insurer, advisory organization, or agency operating in the Commonwealth. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1139, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 16, effective July 14, 2000. -- Amended 1980 Ky. Acts ch. 187, sec. 17, effective July 15, 1980. -- Created 1978 Ky. Acts ch. 199, sec. 1, effective June 17, 1978.

KRS 304.13-355 Appeal of fire protection classification

304.13-355. Appeal of fire protection classification Any fire protection district, municipality, or locality in the state which is assigned a fire protection classification by any lawful advisory organization or insurer which makes its own rates, operating in the Commonwealth, may appeal to the commissioner for modification or reassignment of the classification within thirty (30) days of receipt of the classification. The commissioner shall determine the manner in which an appeal may be filed. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1140, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 17, effective July 14, 2000. -- Amended 1980 Ky. Acts ch. 187, sec. 18, effective July 15, 1980. -- Created 1978 Ky. Acts ch. 199, sec. 3, effective June 17, 1978.

KRS 304.13-360 Investigatory powers of the commissioner

304.13-360. Investigatory powers of the commissioner (1) The commissioner shall make such investigation as he or she deems necessary or convenient for proper determination regarding an appeal. (2) The books, accounts, papers and records of every fire protection classification advisory organization or insurer which makes its own rates, operating in the Commonwealth, shall be available to the commissioner for inspection and examination. By notice and order, the commissioner may require their production or the production of verified copies at such time and place as he or she designates, any expense incurred to be borne by the rating organization or insurer so ordered. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1141, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 18, effective July 14, 2000. -- Amended 1980 Ky. Acts ch. 187, sec. 19, effective July 15, 1980. -- Created 1978 Ky. Acts ch. 199, sec. 4, effective June 17, 1978.

KRS 304.13-365 Hearing -- Final orders

304.13-365. Hearing -- Final orders (1) Within thirty (30) days of the filing of an appeal, the commissioner shall hold an administrative hearing to be conducted in accordance with KRS 304.2-310. Whenever the commissioner determines that a fire protection classification is unreasonable, he or she shall by final order prescribe a reasonable classification to be followed for a period not to exceed one (1) year. A subsequent evaluation by the advisory organization or insurer shall not be permitted until the expiration of the period set by the commissioner. (2) The commissioner may compel obedience to its final orders by proper proceedings in the Franklin Circuit Court or any other court of competent jurisdiction, and these proceedings shall have priority over all pending cases. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1142, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 19, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 318, sec. 236, effective July 15, 1996. -- Amended 1980 Ky. Acts ch. 187, sec. 20, effective July 15, 1980. -- Created 1978 Ky. Acts ch. 199, sec. 5, effective June 17, 1978.

KRS 304.13-370 Increase in fire insurance premiums prohibited until the running of the appeal period or until approval by the board of the classification assigned

304.13-370. Increase in fire insurance premiums prohibited until the running of the appeal period or until approval by the board of the classification assigned (1) No insurer may increase premiums for fire insurance based on a fire protection classification until the expiration of the thirty (30) day period for appeal by the fire protection district, municipality or locality, as provided in KRS 304.13-355. If an appeal is filed, no insurer may increase such premiums until approval of the fire protection classification by the commissioner. (2) If the commissioner's reassignment or modification of a fire protection classification results in lower fire insurance premiums, the appropriate insurers shall make any refunds of paid premiums due to customers within the affected fire protection district, municipality or locality. Such refunds shall be determined from the date the advisory organization or insurer last assigned or reassigned the classification appealed. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1143, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 20, effective July 14, 2000. -- Amended 1980 Ky. Acts ch. 187, sec. 21, effective July 15, 1980. -- Created 1978 Ky. Acts ch. 199, sec. 6, effective June 17, 1978.

KRS 304.13-380 Reports of fire calls by fire departments -- Monthly summaries to be sent to commissioner

304.13-380. Reports of fire calls by fire departments -- Monthly summaries to be sent to commissioner (1) Each fire department operating within the Commonwealth, whether paid or volunteer, shall complete a report each time it responds to a fire call. The report shall be made on a form, similar to the National Fire Protection Association's standard fire reporting form, to be distributed by the Kentucky Fire Commission and shall include but not be limited to the following information: (a) Date of the fire call; (b) Time of day of the fire response; (c) Number of pieces of fire equipment responding to each call; (d) Number of firefighters responding to each call; (e) Description of the estimated fire damages; and (f) Cause of the fire, if known, or the suspected cause of the fire. (2) Each fire department operating within the Commonwealth, whether paid or volunteer, shall file a monthly summary of the reports required to be completed in subsection (1) of this section with the commission's office. The commission shall transmit a copy of each fire department's monthly summary to the commissioner. Monthly summaries shall be made on a form, similar to the National Fire Protection Association's fire reporting action summary form, to be distributed by the commission. Effective: July 15, 2020 History: Amended 2020 Ky. Acts ch. 67, sec. 18, effective July 15, 2020. -- Amended 2010 Ky. Acts ch. 24, sec. 1144, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 170, sec. 1, effective July 15, 2008. -- Created 1982 Ky. Acts ch. 224, sec. 1, effective July 15, 1982.

KRS 304.13-390 Failure of insurer to report losses from fire to state fire marshal -- Notification to commissioner -- Penalty

304.13-390. Failure of insurer to report losses from fire to state fire marshal -- Notification to commissioner -- Penalty If the state fire marshal gives notice to the Department of Insurance that any authorized insurer has failed to comply with the provisions of KRS 227.250, the commissioner may take appropriate action up to and including revoking or suspending the insurer's certificate of authority. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1145, effective July 15, 2010. -- Amended 2004 Ky. Acts ch. 24, sec. 29, effective July 13, 2004. -- Created 1982 Ky. Acts ch. 224, sec. 2, effective July 15, 1982.

KRS 304.13-400 Deductible workers' compensation policy

304.13-400. Deductible workers' compensation policy (1) Each insurer, including those participating in a residual market mechanism, authorized to write workers' compensation insurance in the Commonwealth shall offer, as a part of the policy or as an optional endorsement to the policy, deductibles optional to the employer policyholder for the payment of workers' compensation benefits pursuant to KRS Chapter 342. (2) Deductible amounts offered pursuant to subsection (1) of this section shall be fully disclosed to the employer policyholder in writing and shall range in amounts from one hundred dollars ($100) to ten thousand dollars ($10,000) per compensable occurrence under KRS Chapter 342. The employer policyholder exercising the deductible option shall choose only one (1) deductible amount. (3) (a) If the employer policyholder chooses a deductible policy pursuant to subsections (1) and (2) of this section, the insurer shall pay the deductible amount initially and the employer policyholder shall be liable to the insurer, at the time and in the manner prescribed by the insurer, for the amount of the deductible paid by the insurer for benefits paid pursuant to KRS Chapter 342. (b) Failure by the employer policyholder to reimburse the insurer as required by this subsection shall be treated by the insurer in the same manner as non- payment of premiums. In addition, failure of the employer policyholder to reimburse the insurer as required shall constitute noncompliance with KRS 342.340 for purposes of KRS 342.402. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 446, sec. 1, effective July 14, 1992.

KRS 304.13-410 Premium reduction for deductible workers' compensation policy

304.13-410. Premium reduction for deductible workers' compensation policy (1) An employer policyholder who selects a deductible workers' compensation policy shall be granted a premium reduction by the insurer. The premium reduction shall be calculated by the insurer in accordance with administrative regulations promulgated by the commissioner and shall be fully disclosed to the employer policyholder in writing. (2) For ratemaking purposes, the premium reduction granted to an employer policyholder in accordance with the provisions of subsection (1) of this section shall be applied and considered prior to the application of experience modification adjustments, premium surcharges, or premium discounts. (3) In addition to the provisions contained in subsection (2) of this section, only the net experience of an employer policyholder, which results after application of the deductible amount, rather than the gross experience of the employer policyholder, shall be used by the insurer or advisory organization in the calculation and preparation of workers' compensation rates. Violation of the provisions of this subsection shall constitute grounds for the suspension or revocation of the license of an insurer or advisory organization in the manner prescribed in KRS Chapter 304.13-320. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1146, effective July 15, 2010. -- Created 1992 Ky. Acts ch. 446, sec. 2, effective July 14, 1992.

KRS 304.13-412 Workers' compensation premium -- Credit for certified drug-free workplace program at coal mine

304.13-412. Workers' compensation premium -- Credit for certified drug-free workplace program at coal mine (1) Any employer who is also a licensee of a coal mine that has implemented a drug- free workplace program, including an employee assistance program, certified by the Division of Mine Safety shall be eligible to obtain a credit on the licensee's premium for workers' compensation insurance. (2) Each insurer authorized to write workers' compensation insurance policies shall provide the credit on the workers' compensation premium to any employer who is also a licensee of a coal mine for which the insurer has written a workers' compensation policy. The credit on the workers' compensation premium shall not: (a) Be available to those employers that are also licensees who do not maintain their drug-free workplace program for the entire workers' compensation policy period; or (b) Apply to minimum premium policies. (3) The Department of Insurance shall approve workers' compensation rating plans that give a credit on the premium for a certified drug-free workplace so long as the credit is actuarially sound. The credit shall be at least five percent (5%) unless the Department of Insurance determines that five percent (5%) is actuarially unsound. (4) The credit on the workers' compensation premium may be applied by the insurer at the final audit. Effective: June 24, 2015 History: Amended 2015 Ky. Acts ch. 87, sec. 5, effective June 24, 2015. -- Amended 2010 Ky. Acts ch. 24, sec. 1147, effective July 15, 2010. -- Created 2006 Ky. Acts ch. 241, sec. 1, effective July 12, 2006.

KRS 304.13-415 Experience modification factor for workers' compensation -- Written explanation to workers' compensation policyholders -- Authority for administrative regulations

304.13-415. Experience modification factor for workers' compensation -- Written explanation to workers' compensation policyholders -- Authority for administrative regulations (1) Every employer that is assigned an experience modification factor for workers' compensation in order to determine its workers' compensation premium shall be furnished without charge a complete copy of the data and calculations of the experience modification by the insurance company or any entity to which the insurance company may delegate the duty of calculating and promulgating the experience modification or, if applicable, by any self-insurance group of which the employer is a member. (2) Experience modification shall be based upon all payrolls and claims experience for the applicable period regardless of whether the employer was insured by an insurance company, was a member of a self-insurance group, or was a member of the Kentucky Workers' Compensation Assigned Risk Plan for part or all of the period. (3) For each workers' compensation insurance policy issued or renewed on or after May 1, 1997, the workers' compensation insurer or the licensed advisory organization shall provide, in accordance with subsection (1) of this section, the policyholder with a written explanation of the policyholder's experience modification factor and the data and methodology utilized in the calculation of the factor. (4) The commissioner shall promulgate administrative regulations to establish the guidelines for application of the experience modification factors. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1148, effective July 15, 2010. -- Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 52, effective December 12, 1996. -- Created 1994 Ky. Acts ch. 181, sec. 66, effective April 4, 1994.

KRS 304.13-420 Financial responsibility requirement

304.13-420. Financial responsibility requirement No insurer shall be required to offer a deductible to an employer policyholder, as provided in KRS 304.13-400, if the insurer determines, subject to review by the commissioner, that the prospective employer policyholder is not financially able to comply with the terms and conditions of a deductible workers' compensation policy. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1149, effective July 15, 2010. -- Created 1992 Ky. Acts ch. 446, sec. 3, effective July 14, 1992.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38702Fetched: 10/20/2026