Surplus Lines

KRS tit. XXV, ch. 304, subtit. 10

in effect

KRS 304.10-010 Short title

304.10-010. Short title KRS 304.10-020 to 304.10-210, inclusive, constitute and may be cited as the "Surplus Lines Law." Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 1, effective June 18, 1970.

KRS 304.10-020 Exemptions from Surplus Lines Law

304.10-020. Exemptions from Surplus Lines Law This Surplus Lines Law shall not apply to reinsurance, or to the following insurances when so placed by agents or surplus lines brokers licensed in this state: (1) Ocean marine and foreign trade insurances. (2) Insurance on subjects located, resident, or to be performed wholly outside of this state, or on vehicles or aircraft owned and principally garaged outside this state. (3) Insurance on operations of railroads engaged in transportation in interstate commerce and their property used in such operations. (4) Insurance of aircraft owned or operated by manufacturers of aircraft or of aircraft operated in commercial interstate flight or cargo of aircraft or against liability other than workers' compensation and employer's liability arising out of the ownership, maintenance, or use of aircraft. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 393, sec. 38, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 2, effective June 18, 1970.

KRS 304.10-030 Definitions for Subtitle 10

304.10-030. Definitions for Subtitle 10 As used in this subtitle: (1) "Admitted insurer" means an insurer that is licensed or authorized to transact the business of insurance in Kentucky; (2) "Affiliate" means, with respect to an insured, any entity that controls, is controlled by, or is under common control with the insured; (3) "Broker" means a surplus lines broker duly licensed as such under this subtitle; (4) "Exempt commercial purchaser" means any person purchasing commercial insurance that, at the time of placement, meets the following requirements: (a) The person employs or retains a qualified risk manager to negotiate insurance coverage; (b) The person has paid aggregate nationwide commercial property and casualty insurance premium in excess of one hundred thousand dollars ($100,000) in the immediately preceding twelve (12) months; (c) 1. The person meets at least one (1) of the following criteria: a. The person possesses a net worth in excess of twenty million dollars ($20,000,000), adjusted pursuant to subparagraph 2. of this paragraph; b. The person generates annual revenues in excess of fifty million dollars ($50,000,000), as adjusted pursuant to subparagraph 2. of this paragraph; c. The person employs more than five hundred (500) full-time or full- time equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand (1,000) employees in the aggregate; d. The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million dollars ($30,000,0000), adjusted pursuant to subparagraph 2. of this paragraph; or e. The person is a municipality with a population in excess of fifty thousand (50,000) persons. 2. Effective on the fifth January 1 occurring after July 12, 2012, and each fifth January 1 occurring thereafter, the amounts in subparagraph 1.a., b., and d. of this paragraph shall be adjusted to reflect the percentage change for the five (5) year period in the consumer price index for all urban consumers published by the Bureau of Labor Statistics of the Department of Labor; (5) To "export" means to place in an unauthorized insurer under this Surplus Lines Law insurance covering a subject of insurance resident, located or to be performed in Kentucky; (6) "Home state" means: (a) 1. The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or 2. If one hundred percent (100%) of the insured risk is located out of the state referred to in subparagraph 1. of this paragraph, the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated; or (b) If more than one (1) insureds from an affiliated group are named insureds on a single nonadmitted insurance contract, the home state, as determined pursuant to paragraph (a) of this section, of the member of the affiliated group that has the largest percentage of premium attributed to it under the insurance contract; (7) "Nonadmitted insurance" means: (a) Any property and casualty insurance permitted to be placed directly or through a surplus lines broker with a nonadmitted insurer eligible to accept the insurance; and (b) Any health and life insurance providing disability coverage: 1. With policy limits in excess of those available from an admitted insurer; 2. With participation limits; or 3. Insuring occupations for which coverage is not procurable through an admitted insurer; (8) "Nonadmitted insurer" means an insurer that is not authorized or admitted to transact the business of insurance in Kentucky; and (9) "Surplus lines" means nonadmitted insurance sold to, solicited by, or negotiated with an insured whose home state is Kentucky. Effective: July 14, 2018 History: Amended 2018 Ky. Acts ch. 180, sec. 1, effective July 14, 2018. -- Amended 2012 Ky. Acts ch. 74, sec. 6, effective July 12, 2012. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 3, effective June 18, 1970.

KRS 304.10-040 Conditions for export -- Exceptions relating to diligent effort

304.10-040. Conditions for export -- Exceptions relating to diligent effort (1) Surplus Lines may be procured from a nonadmitted insurer subject to the following conditions: (a) The insurance shall be procured through a licensed surplus lines broker; (b) After a diligent effort, a licensed agent with property and casualty lines of authority, or with health and life lines of authority if procuring disability insurance, has been unable to procure the full amount of insurance required from an insurer that is authorized to transact, and that actually writes, that kind and class of insurance in this state. If the licensed agent is able to procure an amount of insurance less than the full amount, only the excess amount needed to procure the full amount shall be exported; (c) The insurance shall not be exported for the sole purpose of securing either: 1. A lower premium rate than would be accepted by an authorized insurer; or 2. More advantageous terms of the insurance contract. (2) The requirements of subsection (1) of this section related to a diligent effort shall not be required for coverage procured or placed for an exempt commercial purchaser if: (a) The broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and (b) The exempt commercial purchaser has subsequently requested in writing that the broker procure or place insurance from a nonadmitted insurer. Effective: July 14, 2018 History: Amended 2018 Ky. Acts ch. 180, sec. 2, effective July 14, 2018. -- Amended 2012 Ky. Acts ch. 74, sec. 7, effective July 12, 2012. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 4, effective June 18, 1970.

KRS 304.10-050 Broker's affidavit

304.10-050. Broker's affidavit At the time of effecting any such surplus lines insurance, the broker shall execute an affidavit in form prescribed or accepted by the commissioner setting forth facts from which it can be determined whether such insurance was eligible for export under KRS 304.10-040. The broker shall file this affidavit with the commissioner in the manner and form as prescribed by the commissioner through administrative regulation. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1091, effective July 15, 2010. -- Amended 2004 Ky. Acts ch. 157, sec. 5, effective July 13, 2004. -- Amended 1982 Ky. Acts ch. 123, sec. 7, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 5, effective June 18, 1970.

KRS 304.10-060 Open lines for export

304.10-060. Open lines for export (1) The commissioner may by order declare eligible for export generally and without compliance with the provisions of KRS 304.10-040(1)(b) and (c) and 304.10-050, any class or classes of insurance coverage or risk for which he or she finds, after a hearing of which notice was given to each insurer authorized to transact such class or classes in this state, that there is not a reasonable or adequate market among authorized insurers either as to acceptance of the risk, contract terms or premium or premium rate. Any such order shall continue in effect during the existence of the conditions upon which predicated, but subject to earlier termination by the commissioner. (2) The broker shall file with or as directed by the commissioner a memorandum as to each such coverage placed by the broker in an unauthorized insurer, in such form and content as the commissioner may reasonably require for the identification of the coverage and determination of the tax payable to the state relative thereto. (3) The broker, or a licensed agent of the authorized insurer may also place with authorized insurers any insurance coverage made eligible for export generally under subsection (1) of this section, and without regard to rate or form filings which may otherwise be applicable as to the authorized insurer. As to coverages so placed in an authorized insurer the premium tax thereon shall be reported and paid by the insurer as required generally under KRS Chapter 136. Effective: July 14, 2018 History: Amended 2018 Ky. Acts ch. 180, sec. 3, effective July 14, 2018. -- Amended 2010 Ky. Acts ch. 24, sec. 1092, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 6, effective June 18, 1970.

KRS 304.10-070 Eligible surplus lines insurers

304.10-070. Eligible surplus lines insurers (1) A broker shall place surplus lines insurance only with an insurer that he or she knows, or in the exercise of reasonable diligence could know: (a) 1. Is authorized to write the type of insurance in its domiciliary jurisdiction; 2. Has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction that equals the greater of: a. The minimum capital and surplus requirements set forth in KRS 304.3-120; or b. Fifteen million dollars ($15,000,000); and 3. Is listed on the quarterly listing of alien insurers maintained by the National Association of Insurance Commissioners, if the insurer is a nonadmitted insurer domiciled outside of the United States; or (b) Is an association, including incorporated and individual unincorporated underwriters, that is authorized to transact insurance in this state pursuant to KRS 304.3-070(3), provided that the syndicates within the association with whom surplus lines coverage is to be placed are listed on the quarterly listing of alien insurers maintained by the National Association of Insurance Commissioners. The association's authorized status pursuant to KRS 304.3- 070(3) shall not preclude the association from also being an eligible surplus lines insurer pursuant to this section. (2) A broker may: (a) Place insurance covering certificates of investment with an insurance company or guarantee fund which is financially sound and has capital funds and reserves in excess of fifteen million dollars ($15,000,000); and (b) Place insurance with a United States insurance exchange which the commissioner, in his or her discretion, may designate for use by surplus lines brokers licensed by the Commonwealth of Kentucky. (3) The commissioner may declare that a surplus lines insurer is ineligible to transact business in Kentucky. The commissioner shall promptly mail notice of all declarations of ineligibility to each surplus lines broker if at any time the commissioner has reason to believe that a surplus lines insurer no longer meets the standards set forth in this subtitle. Effective: July 15, 2014 History: Amended 2014 Ky. Acts ch. 36, sec. 3, effective July 15, 2014. -- Amended 2012 Ky. Acts ch. 74, sec. 8, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 1093, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 393, sec. 39, effective July 14, 2000. -- Amended 1986 Ky. Acts ch. 437, sec. 15, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 207, sec. 1, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 123, sec. 8, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 262, sec. 1, effective June 17, 1978. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 7, effective June 18, 1970.

KRS 304.10-080 Evidence of the insurance -- Changes -- Penalty

304.10-080. Evidence of the insurance -- Changes -- Penalty (1) Upon placing a surplus lines coverage, the broker shall promptly issue and deliver to the insured evidence of the insurance consisting either of the policy as issued by the insurer, or, if such policy is not then available, the surplus lines broker's certificate. Such a certificate shall be executed by the broker and shall show the description and location of the subject of the insurance, coverage, conditions and term of the insurance, the premium and rate charged and taxes collected from the insured, and the name and address of the insured and insurer. If the direct risk is assumed by more than one (1) insurer, the certificate shall state the name and address and proportion of the entire direct risk assumed by each such insurer. (2) No broker shall issue any such certificate or any cover note or purport to insure or represent that insurance will be or has been granted by any unauthorized insurer, unless he has prior written authority from the insurer for the insurance or has received information from the insurer in the regular course of business that such insurance has been granted, or an insurance policy providing the insurance actually has been issued by the insurer and delivered to the insured. (3) If after the issuance and delivery of any such certificate there is any change as to the identity of the insurers, or the proportion of the direct risk assumed by an insurer as stated in the broker's original certificate, or in any other material respect as to the insurance evidenced by the certificate, the broker shall promptly issue and deliver to the insured a substitute certificate accurately showing the current status of the coverage and the insurers responsible thereunder. (4) If a policy issued by the insurer is not available upon placement of the insurance and the broker has issued and delivered his certificate as hereinabove provided upon request therefor by the insurer the broker shall as soon as reasonably possible procure from the insurer its policy evidencing such insurance and deliver such policy to the insured in replacement of the broker's certificate theretofore issued. (5) Any surplus lines broker who knowingly or negligently issues a false certificate of insurance, or who fails promptly to notify the insured of any material change with respect to such insurance by delivery to the insured of a substitute certificate as provided in subsection (3) of this section, shall upon conviction be subject to the penalty provided by Subtitle 99 of this chapter or to any greater applicable penalty otherwise provided by law. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 8, effective June 18, 1970.

KRS 304.10-090 Indorsement of contract

304.10-090. Indorsement of contract Every insurance contract procured and delivered as a surplus lines coverage pursuant to this subtitle shall have conspicuously stamped upon the face page, initialed by or bearing the name of the surplus lines broker who procured it, the following: "This insurance has been placed with an insurer not licensed to transact business in the Commonwealth of Kentucky but eligible as a surplus lines insurer. The insurer is not a member of the Kentucky Insurance Guaranty Association. Should the insurer become insolvent, the protection and benefits of the Kentucky Insurance Guaranty Association are not available." Effective: July 15, 1988 History: Amended 1988 Ky. Acts ch. 225, sec. 16, effective July 15, 1988. -- Amended 1982 Ky. Acts ch. 123, sec. 9, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 9, effective June 18, 1970.

KRS 304.10-100 Surplus lines insurance valid

304.10-100. Surplus lines insurance valid Insurance contracts procured as surplus lines coverage from unauthorized insurers in accordance with this subtitle shall be fully valid and enforceable as to all parties, and shall be given recognition in all matters and respects to the same effect as like contracts issued by authorized insurers. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 10, effective June 18, 1970.

KRS 304.10-110 Liability of insurer as to losses and unearned premiums

304.10-110. Liability of insurer as to losses and unearned premiums (1) As to a surplus lines risk which has been assumed by an unauthorized insurer under this subtitle, and if the premium has been received by the surplus lines broker who placed the insurance, in all questions arising under the coverage as between the insurer and the insured the insurer shall be deemed to have received the premium due to it for the coverage; and the insurer shall be liable to the insured as to losses covered by the insurance and for unearned premiums which may become payable to the insured upon cancellation of the insurance whether or not in fact the broker is indebted to the insurer with respect to the insurance or for any other cause. (2) Each unauthorized insurer assuming a surplus lines risk under this subtitle shall be deemed to have subjected itself to the terms of this section. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 393, sec. 40, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 11, effective June 18, 1970.

KRS 304.10-120 Licensing of surplus lines brokers -- Reciprocity -- Termination

304.10-120. Licensing of surplus lines brokers -- Reciprocity -- Termination (1) Any person may be licensed as a surplus lines broker who: (a) Is a resident of Kentucky or is a nonresident who is not eligible to be issued a license in accordance with KRS 304.9-140; and (b) Is deemed by the commissioner to be competent and trustworthy with respect to the handling of surplus lines. (2) Application for the license shall be made to the commissioner on forms as designated and furnished by the commissioner. (3) The license fee shall be as specified in KRS 304.4-010. (4) The license and licensee shall be subject to the applicable provisions of Subtitle 9 of this chapter. (5) Notwithstanding subsection (1) of this section, on or after July 1, 2002, an applicant licensed as a surplus lines broker in the applicant's home state may be issued a nonresident surplus lines broker's license in Kentucky if the applicant's home state issues surplus lines broker licenses to Kentucky residents on the same basis. (6) If the resident surplus lines broker fails to maintain his or her agent license with lines of authority for property and casualty, or health and life for a broker procuring surplus lines insurance providing disability coverage, then the surplus lines broker license shall terminate and shall be promptly surrendered to the commissioner without demand. Effective: July 14, 2018 History: Amended 2018 Ky. Acts ch. 180, sec. 4, effective July 14, 2018. -- Amended 2012 Ky. Acts ch. 74, sec. 9, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 1094, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 19, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 39, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 41, effective July 14, 2000. -- Amended 1982 Ky. Acts ch. 123, sec. 10, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 12, effective June 18, 1970.

KRS 304.10-130 Suspension or revocation of broker's license

304.10-130. Suspension or revocation of broker's license (1) The commissioner may suspend or revoke any surplus lines broker's license: (a) If the broker fails to file his or her annual statement or to remit the tax as required by this subtitle; or (b) If the broker fails to keep records, or to allow the commissioner to examine his or her records as required by this subtitle; or (c) If the broker knowingly or negligently places a surplus lines coverage in an insurer that is in unsound financial condition in violation of KRS 304.10-070; or (d) For any other applicable cause for which an agent's license may be suspended or revoked. (2) The procedures provided by Subtitle 9 of this chapter for suspension or revocation of licenses shall apply to suspension or revocation of a surplus lines broker's license. (3) Upon suspending or revoking the broker's surplus lines license the commissioner shall also suspend or revoke all other licenses of or as to the same individual under this code. (4) No broker whose license has been suspended or revoked shall again be so licensed until any fines or delinquent taxes owed have been paid, or in case of revocation until after expiration of one (1) year from the date revocation became final. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1095, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 393, sec. 42, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 13, effective June 18, 1970.

KRS 304.10-140 Broker's evidence of financial responsibility and bond

304.10-140. Broker's evidence of financial responsibility and bond (1) To the extent the Gramm-Leach-Bliley Act, 15 U.S.C. sec. 6751(f), provides that evidence of financial responsibility may be required for licensing for as long as the license remains in effect, a licensed resident surplus lines broker shall keep in force: (a) Evidence of financial responsibility in the sum of not less than one million dollars ($1,000,000) per occurrence, and the sum of two million dollars ($2,000,000) in the aggregate, for all occurrences within one (1) year, either in the form of an errors and omissions insurance policy issued by an authorized insurer, a bond issued by an authorized corporate surety, a deposit, or a combination of a bond issued by an authorized corporate surety and a deposit; and (b) A bond in favor of the State of Kentucky in the penal sum of fifty thousand dollars ($50,000), with an authorized corporate surety guaranteeing that he or she will conduct business under the license in accordance with the provisions of this subtitle and that he or she will promptly remit the taxes required by KRS 304.10-180. The aggregate liability of the surety for any and all claims on any bond shall in no event exceed the penal sum. (2) An insurer issuing coverage under subsection (1)(a) or (b) of this section may offer, as a part of the policy or as an optional endorsement to the policy, deductibles optional to the surplus lines broker applicant or licensee for the payment of claims. Deductible amounts offered in accordance with this section shall be fully disclosed to the applicant or licensee in writing. If the applicant or licensee chooses a deductible policy, the insurer shall pay the deductible amount initially and the licensee shall be liable to the insurer, at the time and in the manner prescribed in the policy, for the amount of the deductible. If the licensee fails to reimburse the insurer as required by this subsection, his or her surplus lines broker license and all other licenses issued by the commissioner are revoked and shall be promptly surrendered to the commissioner without demand. Nothing contained in this subsection is intended to or shall in any manner alter or affect the rights of the insurer to collect the reimbursement for the deductible from the surplus lines broker. Effective: July 12, 2012 History: Amended 2012 Ky. Acts ch. 74, sec. 10, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 1096, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 40, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 43, effective July 14, 2000. -- Amended 1990 Ky. Acts ch. 464, sec. 3, effective July 13, 1990. -- Amended 1982 Ky. Acts ch. 123, sec. 11, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 14, effective June 18, 1970.

KRS 304.10-150 May accept business from agents

304.10-150. May accept business from agents A licensed surplus lines broker may accept and place surplus lines business for any insurance agent licensed in this state for the kind of insurance involved, and may compensate the agent therefor. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 15, effective June 18, 1970.

KRS 304.10-160 Records of broker

304.10-160. Records of broker (1) Each broker shall keep in his or her office a full and true record of each surplus lines coverage procured by him or her, including a copy of each daily report, if any, a copy of each certificate of insurance issued by him or her, and of the following items as may be applicable: (a) Amount of the insurance; (b) Gross premium charged; (c) Return premium paid, if any; (d) Rate of premium charged upon the several items of property; (e) Effective date of the contract, and the terms thereof; (f) Name and address of each insurer on the direct risk and the proportion of the entire risk assumed by the insurer if less than the entire risk; (g) Name and address of the insured; (h) Brief general description of the property or risk insured and where located or to be performed; and (i) Other information as may be required by the commissioner. (2) The record shall be open to examination by the commissioner at all times within five (5) years after issuance of the coverage to which it relates. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1097, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 393, sec. 44, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 16, effective June 18, 1970.

KRS 304.10-170 Quarterly statement of broker

304.10-170. Quarterly statement of broker (1) Each broker shall, within thirty (30) days of the end of each calendar quarter, file with the commissioner a verified statement of all surplus lines insurance transacted by him during the preceding calendar quarter. (2) The statement shall be on forms as prescribed by the commissioner and shall show: (a) Gross amount of each kind of insurance transacted; (b) Aggregate of gross premiums charged; (c) Aggregate of returned premiums paid insureds; (d) Aggregate of net premiums; and (e) Additional information as required by the commissioner. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1098, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 41, effective July 15, 2002. -- Amended 1984 Ky. Acts ch. 322, sec. 10, effective July 13, 1984. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 17, effective June 18, 1970.

KRS 304.10-180 Taxes on surplus lines

304.10-180. Taxes on surplus lines Each broker shall pay the following taxes: (1) A tax at the rate of three percent (3%) on the premiums, assessments, fees, charges, or other consideration deemed part of the premium as defined in KRS 304.14-030, on surplus lines insurance placed with an insured whose home state is Kentucky subject to tax transacted by him or her with unauthorized insurers during the preceding calendar quarter as shown by his or her quarterly statement filed with the commissioner in accordance with KRS 304.10-170. The tax shall not be assessed on the premium surcharge tax, the local government premium tax, or any other state or federal tax. The tax shall be remitted to the commissioner within thirty (30) days of the end of each calendar quarter. When collected the tax shall be credited to the insurance regulatory trust fund, as established by KRS 304.2-400; (2) The premium surcharge tax, to be remitted to the Kentucky Department of Revenue, in accordance with KRS 136.392; and (3) The local government premium tax, to be remitted to the appropriate city, county, or urban-county government taxing authority, in accordance with KRS 91A.080. Each broker shall be subject to the provisions of this section and KRS 91A.080 and 91A.0802 to 91A.0810 as an insurance company. Effective: July 14, 2018 History: Amended 2018 Ky. Acts ch. 180, sec. 5, effective July 14, 2018. -- Amended 2011 Ky. Acts ch. 48, sec. 4, effective June 8, 2011. -- Amended 2010 Ky. Acts ch. 24, sec. 1099, effective July 15, 2010; and ch. 165, sec. 2, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 94, sec. 6, effective July 15, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 678, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 42, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 45, effective July 14, 2000. -- Amended 1982 Ky. Acts ch. 123, sec. 12, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 18, effective June 18, 1970. Legislative Research Commission Note (6/8/2011). 2011 Ky. Acts ch. 48, sec. 5, provided that the provisions contained in Sections 2, 3, and 4 of that Act "shall take effect as provided in Article XIII of Section 1 of this Act, upon legislative enactment of the compact into law by two compacting states, provided the commission shall become effective for purposes of adopting rules, and creating the clearinghouse when there are a total of ten compacting states and contracting states or, alternatively, when there are compacting states and contracting states representing greater than 40 percent of the surplus lines insurance premium volume based on records of the percentage of surplus lines insurance." The Reviser of Statutes has determined that, as of April 8, 2011, two states had enacted the compact, thereby triggering the initial effective date of the compact. Since 2011 Ky. Acts ch. 48, did not contain an emergency clause, this section became effective June 8, 2011, the normal effective date for 2011 legislation.

KRS 304.10-190 Repealed, 1982

304.10-190. Repealed, 1982 Catchline at repeal: Failure to file statement or remit tax - Penalty. History: Repealed 1982 Ky. Acts ch. 123, sec. 14, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 19, effective June 18, 1970.

KRS 304.10-200 Legal process against surplus lines insurer

304.10-200. Legal process against surplus lines insurer (1) An unauthorized insurer shall be sued, upon any cause of action arising in the state under any contract issued by it as a surplus lines contract pursuant to this subtitle, in the Circuit Court of the county in which the cause of action arose. (2) Service of legal process against the insurer may be made in any such action by service upon the Secretary of State as provided in KRS 304.3-230(5). (3) An unauthorized insurer issuing such policy shall be deemed thereby to have authorized service of process against it in the manner and to the effect as provided in this section. Any such policy shall contain a provision stating the substance of this section, and designating the person to whom the Secretary of State shall mail process as provided in KRS 304.3-230(5). Effective: July 13, 1984 History: Amended 1984 Ky. Acts ch. 111, sec. 130, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 319, sec. 5, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 114, sec. 71, effective July 15, 1980; ch. 188, sec. 246, effective July 15, 1980. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 20, effective June 18, 1970.

KRS 304.10-210 Rules and regulations

304.10-210. Rules and regulations The commissioner shall make or may approve and adopt reasonable rules and regulations, consistent with this subtitle, for any and all of the following purposes: (1) Effectuation of the Surplus Lines Law; and (2) Establishment of procedures through which determination is to be made as to the eligibility of particular proposed coverages for export. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1100, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 21, effective June 18, 1970.

KRS 304.10-400 Repealed, 2018

304.10-400. Repealed, 2018 Catchline at repeal: Surplus Lines Insurance Multi-State Compliance Compact. History: Repealed 2018 Ky. Acts ch. 180, sec. 7, effective July 14, 2018. -- Created 2011 Ky. Acts ch. 48, sec. 1, effective June 8, 2011.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38699Fetched: 10/20/2026