Insurance Commissioner

KRS tit. XXV, ch. 304, subtit. 2

in effect

KRS 304.2-010 Department of Insurance continued

304.2-010. Department of Insurance continued There is continued within the Public Protection Cabinet a department to be known as the Department of Insurance. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 913, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 123, sec. 29, effective June 20, 2005. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 1, effective June 18, 1970.

KRS 304.2-015 Renumbered as KRS 198B.035

KRS 304.2-020 Commissioner of insurance -- Appointment, term -- Divisions within department

304.2-020. Commissioner of insurance -- Appointment, term -- Divisions within department (1) The commissioner is the head of the Department of Insurance. (2) The commissioner shall be appointed by the Governor with the consent of the Senate, for a term not to exceed four (4) years on the basis of his or her merit and fitness to perform the duties of the office as provided in KRS 12.040. If the Senate is not in session when a term expires or a vacancy occurs, the Governor shall make the appointment to take effect at once, subject to the approval of the Senate when convened. Nothing contained in this subsection shall prohibit the commissioner of the Department of Insurance from being reappointed. (3) The following divisions are established within the Department of Insurance and shall be headed by directors appointed by the secretary of the Public Protection Cabinet with the approval of the Governor in accordance with KRS 12.050: (a) Division of Health and Life Insurance and Managed Care; (b) Division of Property and Casualty Insurance; (c) Division of Administrative Services; (d) Division of Financial Standards and Examination; (e) Division of Licensing; (f) Division of Insurance Fraud Investigation; and (g) Division of Consumer Protection. Effective: June 29, 2021 History: Amended 2021 Ky. Acts ch. 24, sec. 2, effective June 29, 2021. -- Amended 2019 Ky. Acts ch. 90, sec. 27, effective June 27, 2019. -- Amended 2017 Ky. Acts ch. 94, sec. 2, effective June 29, 2017. -- Amended 2010 Ky. Acts ch. 24, sec. 914, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 123, sec. 30, effective June 20, 2005. -- Amended 1994 Ky. Acts ch. 496, sec. 1, effective July 15, 1994. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 2, effective June 18, 1970.

KRS 304.2-030 Commissioner's oath -- Bond

304.2-030. Commissioner's oath -- Bond (1) Within thirty (30) days from the time of notice of his or her appointment and before entering upon his or her duties, the commissioner shall take the oath of office as required by KRS 62.010. (2) Within the same period the commissioner shall execute and deliver a surety bond, in favor of the Commonwealth of Kentucky, in the penal sum fixed by the Governor, but not less than fifty thousand dollars ($50,000) as required by KRS 62.160. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 915, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 3, effective June 18, 1970.

KRS 304.2-040 Official seal

304.2-040. Official seal (1) The Department of Insurance shall have an official seal, in the form and design as so in use and on file in the office of the Secretary of State immediately prior to June 18, 1970. (2) Every certificate or license issued by the commissioner shall bear the seal of the department. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 916, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 4, effective June 18, 1970.

KRS 304.2-050 Documents under seal

304.2-050. Documents under seal Every certificate, assignment or conveyance executed by the commissioner, relating to the business of insurance or an insurer, in pursuance of authority conferred by law, and sealed with the seal, shall be received as evidence, and may be recorded in the same manner and with the same effect as a deed regularly acknowledged or proved before an officer authorized by law to take the proof or acknowledgment of deeds. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 917, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 5, effective June 18, 1970.

KRS 304.2-060 Appointment of deputies

304.2-060. Appointment of deputies The commissioner may appoint deputies with the prior written approval of the Governor as provided in KRS 12.050. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 918, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 6, effective June 18, 1970.

KRS 304.2-063 Ombudsman in Division of Consumer Protection

304.2-063. Ombudsman in Division of Consumer Protection There is created within the Division of Consumer Protection the position of ombudsman. Effective:June 29, 2017 History: Amended 2017 Ky. Acts ch. 94, sec. 3, effective June 29, 2017. -- Amended 2010 Ky. Acts ch. 24, sec. 919, effective July 15, 2010. -- Created 1998 Ky. Acts ch. 496, sec. 43, effective April 10, 1998.

KRS 304.2-065 Early warning analyst

304.2-065. Early warning analyst (1) There is created within the Department of Insurance the position of early warning analyst. (2) The commissioner shall appoint a qualified person to serve as early warning analyst. (3) The early warning analyst shall detect domiciled companies and companies doing a significant amount of business in the Commonwealth that are in a hazardous or potentially hazardous financial condition. (4) The early warning analyst shall be part of the Financial Standards and Examination Division. (5) The early warning analyst shall: (a) Take advantage of the information available through the Insurance Regulatory Information System and use the information to monitor insurers; (b) Seek information from other states' detection programs; (c) Work with other Department of Insurance employees representing key regulatory areas of the department; (d) Coordinate and develop the use of an indicator list to determine if an insurer is in a hazardous condition. The indicator list shall include but is not limited to the following indicators: 1. An insurer fails to file a timely financial statement as established in KRS Chapter 304; 2. An insurer files financial information which is false or misleading; 3. An insurer overstates its surplus by twenty-five percent (25%) or more; 4. An insurer fails to grant authorization to amend its financial statement when requested; 5. An insurer's financial ratios are outside of the usual range established by the National Association of Insurance Commissioners in the Insurance Regulatory Information System; 6. A projection by the department of an insurer's current financial condition indicates that the sum of its paid-in capital, paid-in surplus, and contributed surplus will be reduced within the next twelve (12) months; 7. An insurer's aggregate net retained risk, direct or assumed, under any one (1) insurance policy or certificate of insurance under a group policy is more than ten percent (10%) of the insurer's surplus, except where otherwise permitted by law; 8. An insurer's reserves for losses and loss adjustment expenses are discounted more than ten percent (10%) of the surplus; 9. An affiliate or subsidiary of an insurer is unable to pay its obligations as the obligations become due and payable; 10. A life, accident, and health insurer has premium writings that result in the surplus being less than five percent (5%) of the aggregate general account reserves for the life insurance in force plus twenty-five percent (25%) of the new annualized accident and health premium writing; 11. An insurer has reinsurance reserve credits, recoverable or receivable, that are disputed by the reinsurer, or are due and payable and remain unpaid, and the reinsurance credits, recoverables, and receivables are more than ten percent (10%) of an insurer's surplus; 12. An insurer consistently issues subordinate premium or surplus debentures to finance its operations; 13. An insurer fails to adequately maintain books and records in a manner that permits examiners to determine the financial condition of the insurer; 14. An insurer has reinsurance agreements affecting twenty percent (20%) or more of the insurer's gross written premiums, direct or assumed, and the assuming insurers are not licensed to do insurance business in the Commonwealth of Kentucky; 15. An insurer's management does not have the experience, competence, or trustworthiness to operate the insurer in a safe and sound manner; 16. An insurer's management engages in unlawful transactions; 17. An insurer fails to have an appraisal made on real estate upon which the insurer has made a mortgage loan; 18. An insurer fails to comply with the terms of an agreement with an affiliate; 19. An insurer has a pattern of refusing to settle valid claims within a reasonable time after due proof of the loss has been received; 20. An insurer fails to follow a policy on rating and underwriting standards appropriate to the risk; 21. An insurer violates KRS Chapter 304; 22. A final administrative or judicial order, initiated by an insurance regulatory agency of another state, is issued against an insurer; and 23. An insurer is in any condition that the commissioner finds is a hazard to policyholders, creditors, or the general public; (e) Recommend regulatory action and provide status reports to the commissioner; and (f) Appear before the Interim Joint Committee on Banking and Insurance or the Standing Committees on Banking and Insurance annually to report on the status of domestic insurance companies and insurance companies doing a substantial amount of business in the Commonwealth of Kentucky. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 920, effective July 15, 2010. -- Amended 2004 Ky. Acts ch. 24, sec. 1, effective July 13, 2004. -- Amended 1998 Ky. Acts ch. 483, sec. 2, effective July 15, 1998. -- Created 1994 Ky. Acts ch. 496, sec. 4, effective July 15, 1994.

KRS 304.2-070 Independent technical, professional services

304.2-070. Independent technical, professional services (1) The commissioner may from time to time contract for and procure, on a fee or independent contract basis, such additional actuarial, examination, rating, and other technical and professional services as he or she may require for the discharge of his or her duties, subject to any other applicable laws of this state. (2) None of the individuals rendering such services shall be in the classified services of the state. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 921, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 7, effective June 18, 1970.

KRS 304.2-080 Prohibited interest, rewards

304.2-080. Prohibited interest, rewards (1) The commissioner or any deputy, examiner, actuary, assistant or employee of the department, shall not be connected with the management of, or be financially interested, directly or indirectly, in any insurer, insurance agency or broker, or insurance transaction except as policyholder or claimant under a policy; except, that as to matters wherein a conflict of interest does not exist on the part of any such individual, the commissioner may employ or retain from time to time insurance actuaries, examiners, accountants, attorneys, or other technicians who are independently practicing their profession even though from time to time similarly employed or retained by insurers or others. (2) No person shall directly or indirectly give or pay to the commissioner or any deputy, examiner, actuary, assistant, employee or technician retained by the department; and the commissioner, or any deputy, examiner, actuary, assistant, employee or technician retained by the department, shall not directly or indirectly receive or accept any fee, compensation, loan, gift or other thing of value in addition to the compensation and expense allowance provided by law, or by contract with the commissioner, for any service rendered or to be rendered, as such commissioner, deputy, examiner, actuary, assistant, employee or technician, or in connection therewith. (3) Subsection (1) of this section shall not be deemed to prohibit receipt by any such person of commissions or retirement benefits to which entitled by reason of services performed prior to becoming commissioner or prior to employment by the commissioner. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 922, effective July 15, 2010. -- Amended 2004 Ky. Acts ch. 24, sec. 2, effective July 13, 2004. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 8, effective June 18, 1970.

KRS 304.2-090 Delegation of powers

304.2-090. Delegation of powers (1) The commissioner may delegate to any deputy, assistant, counsel, actuary, examiner or employee of the department, the exercise or discharge in the commissioner's name of any power, duty or function, whether ministerial, discretionary or of whatever character, vested in or imposed upon the commissioner under this code. (2) The official act of any such person so acting in the commissioner's name and by his or her authority shall be deemed to be an official act of the commissioner. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 923, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 9, effective June 18, 1970.

KRS 304.2-100 General powers and duties of commissioner

304.2-100. General powers and duties of commissioner (1) The commissioner shall personally supervise the operations of the department. (2) The commissioner shall examine and inquire into violations of this code, shall enforce the provisions of this code with impartiality and shall execute the duties imposed upon him or her by this code. (3) The commissioner shall have the powers and authority expressly conferred upon him or her by or reasonably implied from the provisions of this code. (4) The commissioner may conduct such examinations and investigations of insurance matters, in addition to examinations and investigations expressly authorized, as the commissioner may deem proper upon reasonable and probable cause to determine whether any person has violated any provisions of this code or to secure information useful in the lawful administration of any such provision. The cost of such additional examinations and investigations shall be borne by the state. (5) The commissioner may establish and maintain such branch offices in this state as may be reasonably required for the efficient administration of this code. (6) The commissioner shall have such additional powers and duties as may be provided by other laws of this state. (7) The commissioner shall assist the Office of Health Data and Analytics in carrying out Subtitle 17B of this chapter and KRS 194A.099. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 90, sec. 28, effective June 27, 2019. -- Amended 2010 Ky. Acts ch. 24, sec. 924, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 123, sec. 31, effective June 20, 2005. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 10, effective June 18, 1970.

KRS 304.2-105 Commissioner's authority to extend in-state insurance activity to match that of federally regulated financial institutions

304.2-105. Commissioner's authority to extend in-state insurance activity to match that of federally regulated financial institutions Notwithstanding any other provision of law, to the extent authorized by the commissioner by administrative regulation, a licensed agent, producer, broker, or insurer has the power to engage in any insurance activity that financial institutions chartered by or otherwise subject to the jurisdiction of the federal government are authorized to engage in according to federal law or regulation or by a court of competent jurisdiction. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 925, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 254, sec. 1, effective July 14, 2000.

KRS 304.2-110 Rules and regulations

304.2-110. Rules and regulations (1) The commissioner may make reasonable rules and regulations necessary for or as an aid to the effectuation of any provision of this code. No such rule or regulation shall extend, modify, or conflict with any law of this state or the reasonable implications thereof. (2) No penalty shall apply to any act done or omitted in good faith in conformity with any such rule or regulation, notwithstanding that such rule or regulation may, after such act or omission, be amended or rescinded or determined by judicial or other authority to be invalid for any reason. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 926, effective July 15, 2010. -- Amended 1982 Ky. Acts ch. 320, sec. 3, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 11, effective June 18, 1970.

KRS 304.2-120 Orders and notices in general -- Service

304.2-120. Orders and notices in general -- Service (1) In general, orders and notices of the commissioner shall be issued in accordance with this chapter. Notices, recommended orders, and final orders issued as a result of an administrative hearing shall be issued in accordance with KRS Chapter 13B. (2) Orders and notices of the commissioner shall be effective only when in writing signed by the commissioner or by the commissioner's authority. (3) Every order of the commissioner shall state its effective date and shall concisely state: (a) Its intent or purpose; (b) The grounds on which it is based; (c) The provisions of this code under which action is taken or proposed to be taken; and (d) All other matters required by law. (4) All persons holding licenses or certificates of authority from the commissioner shall maintain current residence, business, home office, and administrative addresses, as applicable, on file with the commissioner. Licensees shall inform the commissioner in writing in a format acceptable to the commissioner of any change in addresses or legal name within thirty (30) days of the change. As a condition to holding a license or certificate of authority from the commissioner, persons holding licenses or certificate of authority are deemed to have consented to service of notices and orders of the commissioner at their addresses on file with the commissioner and any notice or order of the commissioner mailed or delivered to the address on file with the commissioner constitutes valid service of notice or order. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 927, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 393, sec. 46, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 318, sec. 226, effective July 15, 1996. -- Amended 1986 Ky. Acts ch. 437, sec. 3, effective July 15, 1986. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 12, effective June 18, 1970.

KRS 304.2-130 Enforcement

304.2-130. Enforcement (1) The commissioner may invoke the aid of the courts through injunction or other proper process, mandatory or otherwise, to enjoin any existing or threatened violation of any provision of this code, or to enforce any proper order made by him or her or action taken by him or her. (2) If the commissioner has reason to believe that any person has violated any provision of this code, or other law applicable to insurance operations, for which criminal prosecution is provided and in his or her opinion would be in order, the commissioner shall give the information relative thereto to the appropriate Commonwealth attorney or to the Attorney General. The Commonwealth attorney or Attorney General shall promptly institute such action or proceedings against such person as in his or her opinion the information may require or justify. (3) Whenever the commissioner may deem it necessary, he or she may employ counsel, or call upon the Attorney General of this state for legal counsel and such assistance as may be necessary. (4) The Attorney General upon request of the commissioner is authorized to proceed in the courts of any other state or in any federal court or agency to enforce an order or decision in any court proceeding or in any administrative proceeding before the commissioner. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 928, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 13, effective June 18, 1970.

KRS 304.2-140 Penalties for violations

304.2-140. Penalties for violations Any person who willfully violates any rule, regulation, subpoena, or order of the commissioner or any provision of this code shall be subject to suspension or revocation of certificate of authority or license, or administrative fine or both. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 929, effective July 15, 2010. -- Amended 1994 Ky. Acts ch. 93, sec. 2, effective July 15, 1994. -- Amended 1982 Ky. Acts ch. 320, sec. 4, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 14, effective June 18, 1970.

KRS 304.2-150 Records -- Inspection -- Destruction -- Subject to Open Records Act

304.2-150. Records -- Inspection -- Destruction -- Subject to Open Records Act (1) The commissioner shall carefully preserve in the department and in permanent form, a correct account of all his or her transactions and of all fees and moneys received by him or her by virtue of his or her office, together with all financial statements, examination reports, correspondence, filings, and documents duly received by the department. The commissioner shall hand the same over to his or her successor in office. (2) The commissioner shall keep a suitable record of all insurer certificates of authority and of all licenses issued under this code, together with all applicable suspensions and revocations and of the causes thereof. (3) Unless otherwise provided by law, records of the department shall be open to the extent provided by the Kentucky Open Records Act, KRS 61.872 to 61.884: (a) The following records shall be open: 1. Rate and form filings and information filed in support thereof; 2. Other records as provided by law; and 3. All information filed by the department with the National Association of Insurance Commissioners, which that association makes available; (b) The following records shall be closed: 1. All information received in confidence from insurance supervisory officials of other states or countries, or the National Association of Insurance Commissioners, including, but not limited to, information from the insurance regulatory information system. However, records described in this paragraph may be used by the commissioner in enforcement prosecutions and proceedings for disciplinary action, and may be disclosed to other law enforcement authorities; and 2. Other records as provided by law; and (c) When inspection of department records is denied, any person challenging the denial shall follow the procedures set forth in the Kentucky Open Records Act, KRS 61.872 to 61.884. (4) After five (5) years, the commissioner may destroy unneeded or obsolete records and filings in the department. (5) The department shall not charge a fee inconsistent with fees charged by other state agencies for copies of records requested by the public pursuant to this section. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 930, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 380, sec. 29, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 93, sec. 1, effective July 15, 1994; and ch. 496, sec. 2, effective July 15, 1994. -- Amended 1986 Ky. Acts ch. 437, sec. 4, effective July 15, 1986. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 15, effective June 18, 1970.

KRS 304.2-155 Repealed, 1994

304.2-155. Repealed, 1994 Catchline at repeal: Insurance Consumer's Advisory Council. History: Repealed 1994 Ky. Acts ch. 93, sec. 22, effective July 15, 1994. -- Created 1988 Ky. Acts ch. 225, sec. 20, effective July 15, 1988.

KRS 304.2-160 Complaints

304.2-160. Complaints (1) As used in this section, "licensee" means an individual or entity that holds a license issued by the commissioner or department. (2) Each written and signed complaint received by the department shall be recorded by the department, including the subsequent disposition thereof, and maintained for a period of not less than five (5) years. (3) The records of complaints received by the department shall be indexed whenever applicable both by the name of the insurer and by the name of the licensee involved. (4) The commissioner shall consider complaints received by the department before issuing or renewing any certificate of authority or license. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 3, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 931, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 32, sec. 11, effective July 15, 2008. -- Amended 2002 Ky. Acts ch. 273, sec. 1, effective July 15, 2002. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 16, effective June 18, 1970.

KRS 304.2-165 Complaints regarding insurer -- Other authority of commissioner

304.2-165. Complaints regarding insurer -- Other authority of commissioner (1) The commissioner shall review, and investigate where applicable, all written complaints involving entities or individuals engaged in the business of insurance in Kentucky. (2) The commissioner shall send a copy of the complaint to the entity or individual and the entity or individual shall send a written or electronic message response to the commissioner within fifteen (15) calendar days from the date of the commissioner's letter. (3) Upon review of a complaint, the commissioner shall make a finding to the entity or individual and the complainant. (4) This section shall not limit the power of the commissioner to exercise any other authority under this code as to an insurance dispute. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 932, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 492, sec. 2, effective July 14, 2000. -- Amended 1986 Ky. Acts ch. 437, sec. 5, effective July 15, 1986. -- Created 1980 Ky. Acts ch. 374, sec. 1, effective July 15, 1980.

KRS 304.2-170 Official documents, reproductions, and certified copies -- Use as evidence

304.2-170. Official documents, reproductions, and certified copies -- Use as evidence (1) Upon the request of any person and payment of the applicable fee, the commissioner shall furnish a certified copy of any record or document in the department which is then subject to public inspection, as provided in subsection (3) of KRS 304.2-150. (2) Reproductions of records or documents on file in the department, when duly certified by the commissioner, shall be received in evidence in all proceedings and courts equally and in like manner as if they were the originals, and shall have the same effect and force as such originals, as in other cases provided by law or rule of court. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 933, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 17, effective June 18, 1970.

KRS 304.2-180 Repealed, 1982

304.2-180. Repealed, 1982 Catchline at repeal: Commissioner's annual report. History: Repealed 1982 Ky. Acts ch. 320, sec. 52, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 18.

KRS 304.2-190 Publications -- Sale

304.2-190. Publications -- Sale (1) The commissioner may have the directory of authorized insurers, of licensed insurance representatives, license examination material, insurance laws and related laws and regulations under his or her administration published in pamphlet form from time to time, and may fix a price for each copy not to exceed one hundred twenty-five percent (125%) of cost. (2) The commissioner shall account for and deposit all moneys so received in the manner provided under KRS 304.4-020. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 934, effective July 15, 2010. -- Amended 1982 Ky. Acts ch. 320, sec. 5, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 211, sec. 1, effective July 15, 1980. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 19, effective June 18, 1970.

KRS 304.2-195 Interstate compacts for issuing certificates of authority

304.2-195. Interstate compacts for issuing certificates of authority (1) The commissioner may enter into interstate compacts for issuing certificates of authority to insurers if the commissioner determines that: (a) Each state participating in the compact has requirements for issuing certificates of authority that provide protections substantially similar to or greater than the requirements of this subtitle; or (b) The interstate compact contains requirements for issuing certificates of authority that provide protections substantially similar to or greater than the requirements of this subtitle. (2) In lieu of the documents required in KRS 304.3-150 to be filed with an application for certificate of authority, the commissioner may accept documentation in accordance with the terms of the interstate compact. (3) The commissioner may issue certificates of authority to insurers in accordance with the terms of the interstate compact. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 935, effective July 15, 2010. -- Amended 2004 Ky. Acts ch. 24, sec. 46, effective July 13, 2004. -- Created 2000 Ky. Acts ch. 254, sec. 2, effective July 14, 2000.

KRS 304.2-200 Interstate cooperation

304.2-200. Interstate cooperation (1) The commissioner may furnish on request of the insurance supervisory official of any state, province or country any information which it is the commissioner's duty by law to ascertain respecting authorized insurers. (2) The commissioner may be a member of the National Association of Insurance Commissioners or any successor organization, and may participate in and support other cooperative activities of public officers having supervision of the business of insurance. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 936, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 20, June 18, 1970.

KRS 304.2-205 Annual statement convention blank -- Immunity from prosecution

304.2-205. Annual statement convention blank -- Immunity from prosecution (1) The provisions of this section apply to all domestic, foreign, and alien insurers, fraternal benefit societies, health maintenance organizations, and nonprofit hospital, medical-surgical, dental, and health service corporations authorized to transact business pursuant to this chapter. (2) (a) 1. Each domestic, foreign, and alien insurer, fraternal benefit society, health maintenance organization, and nonprofit hospital, medical- surgical, dental, and health service corporation authorized to transact business pursuant to this chapter shall annually on or before March 1 of each year file with the National Association of Insurance Commissioners a copy of its annual statement convention blank, along with additional filings as prescribed by the commissioner, for the preceding year. 2. The information filed with the National Association of Insurance Commissioners shall: a. Be submitted electronically; b. Be in the same format and scope as that required by the commissioner; and c. Include the: i. Signed jurat page; and ii. Life and health actuarial certification. 3. Any amendments or additions to the annual statement filing subsequently filed with the commissioner shall also be filed electronically with the National Association of Insurance Commissioners. (b) Foreign insurers, health maintenance organizations, and fraternal benefit societies that are domiciled in states which have laws substantially similar to paragraph (a) of this subsection shall be deemed in compliance with this section. (c) Nothing contained in this section shall be deemed to require anyone filing documents with the National Association of Insurance Commissioners to pay any filing fee for a filing. (3) Members of the National Association of Insurance Commissioners, their duly authorized committees, subcommittees, and task forces, their delegates, National Association of Insurance Commissioners employees, and all others charged with the responsibility of collecting, reviewing, analyzing, or disseminating the information developed from the filing of the annual statement convention blanks shall not be subject to civil liability for defamation or any other cause of action by virtue of their collection, review, analysis, or dissemination of the data and information collected from the filings required by this section while acting in good faith. Effective: July 14, 2022 History: Amended 2022 Ky. Acts ch. 133, sec. 1, effective July 14, 2022. -- Amended 2010 Ky. Acts ch. 24, sec. 937, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 483, sec. 3, effective July 15, 1998. -- Created 1986 Ky. Acts ch. 263, sec. 1, effective July 15, 1986.

KRS 304.2-210 Examination of insurers

304.2-210. Examination of insurers (1) As used in KRS 304.2-210 to 304.2-300, unless the context requires otherwise, "examination workpaper" means a written or recorded document, note, memorandum, critique, comment, recommendation, or other information copied, established, created, or retained by the commissioner or his designee for the purpose of conducting an examination or drafting an examination report. (2) For the purpose of determining financial condition, ability to fulfill and manner of fulfillment of its obligations, the nature of its operations, and compliance with law, the commissioner shall examine the affairs, transactions, accounts, records, and assets of each authorized insurer as often as reasonably necessary. He shall so examine each domestic insurer not less frequently than every five (5) years. Examination of a reciprocal insurer may include examination of its attorney-in-fact as to its transactions relating to the insurer. Examination of an alien insurer may be limited to its insurance transactions and affairs in the United States, except as the commissioner otherwise requires. (3) In scheduling and determining the nature, scope, and frequency of the examinations, the commissioner shall consider the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants, and other criteria as set forth in the Examiner's Handbook prescribed by the commissioner. (4) For purposes of completing an examination of an insurer, the commissioner may examine or investigate any person or the business of any person, insofar as the examination or investigation is, in the sole discretion of the commissioner, necessary and material to the examination of the insurer. (5) The commissioner shall in like manner examine each insurer applying for an initial certificate of authority to transact insurance in this state. (6) In lieu of making his own examination, the commissioner may, in his discretion, accept a full report of the most recently completed examination of a foreign, or alien, insurer, certified to by the insurance supervisory official of another state. Reports shall only be accepted if the examination is performed under the supervision of an accredited insurance department or with the participation of one (1) or more examiners who are employed by an accredited state insurance department and who, after a review of the examination work papers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by their insurance department. (7) As far as practical, the examination of a foreign or alien insurer shall be made in cooperation with the insurance supervisory officers of other states in which the insurer transacts business, and for the purpose thereof, the commissioner may participate in joint examinations of insurers or be represented in an examination by an examiner of another state. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 938, effective July 15, 2010; and ch. 25, sec. 1, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 152, sec. 1, effective July 15, 2008. -- Amended 1998 Ky. Acts ch. 483, sec. 4, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 496, sec. 3, effective July 15, 1994. -- Amended 1974 Ky. Acts ch. 308, sec. 51, effective June 21, 1974. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 21, effective June 18, 1970. Legislative Research Commission Note (7/15/2010). A reference to the "executive director" of insurance in subsection (3) of this section, as amended by 2010 Ky. Acts ch. 25, sec. 1, has been changed in codification to the "commissioner" of insurance to reflect the reorganization of certain parts of the Executive Branch, as set forth in Executive Order 2009-535 and confirmed by the General Assembly in 2010 Ky. Acts ch. 24. This change was made by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 25, which do not appear to be in conflict and have been codified together.

KRS 304.2-220 Examination of holding companies, subsidiaries, agents, promoters, and others

304.2-220. Examination of holding companies, subsidiaries, agents, promoters, and others For the purpose of ascertaining compliance with law, or relationships and transactions between any person and any insurer or proposed insurer, the commissioner may as often as reasonably necessary examine the accounts, records, documents, and transactions pertaining to or affecting the insurance affairs or proposed insurance affairs and transactions of any: (1) Insurance holding company; (2) Person holding the shares of voting stock or policyholder proxies of an insurer as voting trustee or otherwise, for the purpose of controlling the management thereof; (3) Insurance agent, managing general agent, surplus lines broker, adjuster, consultant, administrator, reinsurance intermediary broker or manager, rental vehicle agent, rental vehicle agent managing employee, pharmacy benefit manager, portable electronics retailer, or any person holding himself or herself out as any of the foregoing; (4) Person having a contract under which he or she enjoys by terms or in fact the exclusive or dominant right to manage or control an insurer, as voting trustee or otherwise; and (5) Person in this state engaged in, proposing to be engaged in, holding himself or herself out as so engaging or proposing, or assisting in the promotion, formation, or financing of: (a) An insurer; (b) An insurance holding company; or (c) A corporation or other group to finance an insurer or the production of its business. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 4, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 939, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 2, effective July 15, 2002. -- Created 1970 Ky. Acts ch. 301, s ubtit. 2, sec. 22effective June 18, 1970.

KRS 304.2-230 Conduct of examination -- Immunity for examiners or analysts -- Access to records -- Corrections -- Penalty

304.2-230. Conduct of examination -- Immunity for examiners or analysts -- Access to records -- Corrections -- Penalty (1) Whenever the commissioner determines to examine the affairs of any person, he or she shall designate one (1) or more examiners, which may include analysts, and instruct them as to the scope of the examination. The examiner or analyst shall, upon demand, exhibit his or her official credentials to the person under examination. In conducting the examination, the examiner or analyst shall observe those guidelines and procedures set forth in the Examiners' Handbook adopted by the National Association of Insurance Commissioners. The commissioner may also employ other guidelines or procedures as the commissioner deems appropriate. (2) (a) 1. An examiner or analyst may not be appointed by the commissioner if the examiner or analyst, either directly or indirectly, has a conflict of interest or is affiliated with the management of, or owns a pecuniary interest in, any person subject to examination. 2. This subsection shall not be construed to automatically preclude an examiner or analyst from being: a. A policyholder or claimant under an insurance policy; b. A grantor of a mortgage or similar instrument on the examiner's or analyst's residence to a regulated entity if done under customary terms and in the ordinary course of business; c. An investment owner in shares of regulated diversified investment companies; or d. A settler or beneficiary of a "blind trust" into which any otherwise impermissible holdings have been placed. (b) Notwithstanding the requirements of paragraph (a) of this subsection, the commissioner may retain from time to time, on an individual basis, qualified actuaries, certified public accountants, or other similar individuals who are independently practicing their professions even though these persons may from time to time be similarly employed or retained by persons subject to examination. (3) (a) Except as provided in paragraph (b) of this subsection, any examiner or analyst performing an examination of an insurer on behalf of, and as called by, the commissioner, including any analyst engaged in review, verification, and analysis of an insurer, shall have official immunity and shall be immune from suit and liability, both personally and in their official capacities, for any claim for damage to, or loss of property, or personal injury, or other civil liability caused by or resulting from any alleged act, error, or omission of the examiner or analyst, or any assistant or contractor, arising out of, or by reason of, their duties or employment. (b) Nothing in this subsection shall be construed to hold the examiner or analyst, or any assistant or contractor, immune from suit and liability for any damage, loss, injury, or liability caused by the intentional or willful and wanton misconduct of the examiner or analyst or any assistant or contractor. (4) The commissioner shall conduct the examination in an expeditious, fair, and impartial manner. (5) Upon examination, the commissioner, or the examiner or analyst if specifically so authorized in writing by the commissioner, shall have power to issue subpoenas, administer oaths, and to examine under oath any individual as to any matter relevant to the affairs under examination or relevant to the examination. (6) Every person being examined, and its officers, attorneys, employees, agents, and representatives, shall: (a) Make freely available to the commissioner, or his or her examiners or analysts, the accounts, records, documents, files, information, assets, and matters of the person in its possession or control relating to the subject of the examination; and (b) Facilitate the examination. (7) (a) Neither the commissioner nor any examiner or analyst shall remove any record, account, document, file, or other property of the person being examined from the offices or place of that person except with the person's written consent in advance of the removal or pursuant to an order of court duly obtained. (b) This subsection shall not be deemed to affect the making and removal of copies or abstracts of any record, account, document, or file. (8) Any individual who refuses without just cause to be examined under oath or who willfully obstructs or interferes with the examiners or analysts in the exercise of their authority pursuant to this section is guilty of a violation of this code. (9) (a) The commissioner may terminate or suspend an examination in order to pursue other legal or regulatory action pursuant to the insurance laws of this state. (b) Findings of fact and conclusions made pursuant to an examination shall be prima facie evidence in any legal or regulatory action. (c) The commissioner may use, and if appropriate, may make public, any final or preliminary examination report, any examiner's or analyst's workpapers or other documents, or any other information discovered or developed during the course of the examination in the furtherance of any legal or regulatory action that the commissioner may, in his or her sole discretion, deem appropriate. (d) Nothing in this subsection shall be binding upon the court in making determinations about relevancy and admissibility in any civil action pertaining to any examination documents. Effective: July 14, 2022 History: Amended 2022 Ky. Acts ch. 133, sec. 2, effective July 14, 2022. -- Amended 2010 Ky. Acts ch. 24, sec. 940, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 152, sec. 2, effective July 15, 2008. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 23, effective June 18, 1970.

KRS 304.2-240 Appraisal of asset

304.2-240. Appraisal of asset (1) If the commissioner deems it necessary to value any asset involved in such an examination, he or she may make written request of the person being examined to appoint one or more appraisers who by reason of education, experience or special training and disinterest, are competent to appraise the asset. Selection of any such appraiser shall be subject to the written approval of the commissioner. If no such appointment is made within twenty (20) days after the request therefor was delivered to such person, the commissioner may appoint the appraiser or appraisers. (2) Any such appraisal shall be expeditiously made, and a copy thereof furnished to the commissioner and to the person being examined. (3) The reasonable expense of the appraisal shall be borne by the person being examined. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 941, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 24, effective June 18, 1970.

KRS 304.2-250 Examination reports -- Contents -- Prima facie evidence in certain proceedings -- Confidentiality

304.2-250. Examination reports -- Contents -- Prima facie evidence in certain proceedings -- Confidentiality (1) Upon completion of an examination, the examiner in charge shall make a true report thereof which shall comprise only facts appearing upon the books, records or other documents of the person examined, or as ascertained from the sworn testimony of its officers or agents or other individuals examined concerning its affairs, and such conclusions and recommendations as may reasonably be warranted from such facts. (2) The report of examination of an insurer shall be prima facie evidence in any action or proceeding for the receivership, conservation or liquidation of the insurer brought in the name of the state against the insurer, its officers or agents upon the facts stated therein, and whether or not the report has then been filed in the department as provided in KRS 304.2-260. (3) Except as provided in KRS 304.2-260 and 304.2-270, documents, materials, or other information, including examination workpapers, in the possession or control of the commissioner that are created, produced, or obtained by or disclosed to the commissioner or any other person in the course of an examination made under this subtitle, or in the course of an examination made under KRS 304.2-210 to 304.2- 300, or in the course of analysis by the commissioner of the financial condition, or market conduct of an insurer shall be confidential by law and privileged but may be used, received, and shared in accordance with KRS 304.2-210. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 942, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 152, sec. 3, effective July 15, 2008. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 25, effective June 18, 1970.

KRS 304.2-260 Examination reports -- Distribution -- Hearing -- Order of commissioner -- Confidentiality -- Public inspection -- Regulatory action

304.2-260. Examination reports -- Distribution -- Hearing -- Order of commissioner -- Confidentiality -- Public inspection -- Regulatory action (1) The commissioner shall deliver a copy of the examination report to the person examined, together with a notice affording the person twenty (20) days or additional reasonable period as the commissioner for good cause may allow within which to review the report and recommend changes therein. (2) If so requested by the person examined, within the period allowed under subsection (1) of this section, or if deemed advisable by the commissioner without a request, the commissioner shall hold a hearing relative to the report and shall not file the report in the department for public inspection until after the hearing and his order thereon, except that the commissioner may furnish a copy of the report to the Governor or Attorney General of the state pending final decision thereon. (3) If no hearing has been requested or held, the commissioner shall fully consider and review the report, together with any written submissions or rebuttals and any relevant portions of the examiner's workpapers and enter an order within sixty (60) days of the end of the period allowed under subsection (1) of this section. The order of the commissioner shall: (a) Adopt the examination report as filed or with modifications or corrections. If the examination report reveals that the person is operating in violation of or has violated any law, administrative regulation, or prior order of the commissioner, the commissioner may order the person to take action to cure the violations and impose penalties as the commissioner considers necessary and appropriate; or (b) Reject the examination report with directions to the examiners to reopen the examination for purposes of obtaining additional data, documentation, or information, and refiling as provided in KRS 304.2-250; or (c) Call for a hearing for purposes of obtaining additional documentation, data, information, and testimony. (4) Upon entry of the commissioner's order, the examination report, with modifications, if any, thereof as the commissioner deems proper, shall be filed in the department for public inspection, except that the commissioner may withhold from public inspection any examination report for so long as he deems the withholding to be necessary for the protection of the person examined against unwarranted injury or to be in the public interest and except that the commissioner shall withhold from public inspection any examination report of a domestic insurer as provided in KRS 304.2-270. (5) An examination workpaper shall be deemed confidential information and shall not be available for public inspection, except that the commissioner may in the commissioner's discretion disclose an examination workpaper, the content of a preliminary examination report, examination results, or any other matter resulting to an examination report to the department of insurance of any other state or country, or to the National Association of Insurance Commissioners, or to law enforcement officials of this or any other state, or to an agency of this state or any other state or the federal government at any time, if the agency or office receiving the report or matters relating to the report agrees in writing to hold the information confidential and in a manner consistent with this section. (6) The commissioner shall forward to the person examined a copy of the examination report as filed for public inspection, together with the order of the commissioner. (7) If the report concerns the examination of a domestic insurer, a copy of the report, when filed for public inspection, or if withheld from public inspection in accordance with KRS 304.2-270 or subsection (4) of this section, together with the order of the commissioner, shall be presented by the insurer's chief executive officer to the insurer's board of directors or similar governing body at a meeting thereof which shall be held within ninety (90) days next following receipt of the report and order. A copy of the report and order shall also be furnished by the secretary of the insurer, if incorporated, or by the attorney-in-fact if a reciprocal insurer, or Lloyd's plan insurer, to each member of the insurer's board of directors or board of governors, if a reciprocal insurer, or Lloyd's plan insurer, and the certificate of the secretary or attorney-in-fact, which shall be filed promptly with the department, that a copy of the examination report and order, has been so furnished shall be deemed to constitute knowledge of the contents of the report and order by each member. (8) The report when so filed in the department shall be admissible in evidence in any action or proceeding brought by the commissioner against the person examined, or against its officers, employees, or agents. In any action or proceeding brought by the commissioner, the commissioner or his examiners may, however, at any time testify and offer proper evidence as to information secured or matters discovered during the course of an examination, whether or not a written report of the examination has been either made, furnished, or filed in the department. (9) If the commissioner determines that regulatory action is appropriate as a result of an examination, he or she may initiate any proceedings or actions provided by law. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 943, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 152, sec. 4, effective July 15, 2008. -- Amended 1994 Ky. Acts ch. 92, sec. 1, effective July 15, 1994. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 26, effective June 18, 1970.

KRS 304.2-270 Examination report of domestic insurer -- Confidential nature -- Limited disclosure

304.2-270. Examination report of domestic insurer -- Confidential nature -- Limited disclosure The report of examination of a domestic insurer, although filed in the department as provided in KRS 304.2-260, shall nevertheless not be for public inspection except as to those portions of the report showing the insurer's current financial condition. The examination workpapers shall be deemed confidential information and shall not be available for public inspection, except that the commissioner may in his discretion disclose the content of an examination report, preliminary examination report, examination results, or any other matter relating to an examination report, to the department of insurance of any other state or country, or to law enforcement officials of this or any other state, or to an agency of this or any other state or the federal government at any time, if the agency or office receiving the report or matters relating to the report agrees in writing to hold it confidential and in a manner consistent with this section and KRS 304.2-260. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 944, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 152, sec. 5, effective July 15, 2008. -- Amended 1998 Ky. Acts ch. 483, sec. 5, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 92, sec. 2, effective July 15, 1994. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 27, effective June 18, 1970.

KRS 304.2-280 Examiners -- Qualifications

304.2-280. Examiners -- Qualifications For the conduct of or assistance in examinations under this chapter the commissioner shall appoint as examiners only individuals who by reason of education, experience, or special training are competent to perform the duties and fulfill the responsibilities of an insurance examiner. In the selection of examiners the commissioner shall give due consideration to standards and qualifications therefor recommended by the National Association of Insurance Commissioners or any successor organization thereto. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 945, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 28, effective June 18, 1970.

KRS 304.2-290 Examination expense

304.2-290. Examination expense (1) The expense of examination shall be borne by the person examined. Such expense shall include only the reasonable and proper lodgings, meals and travel expenses of the commissioner and the commissioner's examiners and assistants, including expert assistance, reasonable compensation as to such examiners and assistants and incidental expense as necessarily incurred in the examination. As to expense and compensation involved in any such examination the commissioner may give due consideration to scales and limitations recommended by the National Association of Insurance Commissioners and outlined in the examination manual sponsored by that association. (2) Such person examined shall promptly pay to the commissioner the expenses of the examination upon presentation by the commissioner of a reasonably detailed written statement thereof. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 946, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 29, effective June 18, 1970.

KRS 304.2-300 Examination expense revolving fund

304.2-300. Examination expense revolving fund (1) There is created in the State Treasury the "Examination Expense Revolving fund" for the use of the department. The commissioner shall promptly deposit all funds received under a statute requiring examination expenses to be paid by the party examined and deposited with the State Treasurer to the credit of the fund. (2) Moneys for travel, per diem, compensation and other necessary and authorized expenses incurred by an examiner or other department representative in the examination of any person required to pay, and making payment of, the expense of examination pursuant to KRS 304.2-290 shall be paid out of the examination expense revolving fund, upon approval of the commissioner. (3) Moneys for travel and other necessary expenses assessed pursuant to KRS 304.8- 190 shall be paid out of the examination expense revolving fund upon approval of the commissioner. (4) If any amount in the revolving fund remains unexpended at the end of any fiscal year, that amount shall not lapse, but shall remain credited to the account and may be used during the succeeding year or years. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 947, effective July 15, 2010. -- Amended 2004 Ky. Acts ch. 24, sec. 3, effective July 13, 2004. -- Amended 1982 Ky. Acts ch. 320, sec. 6, effective July 15, 1982. -- Amended 1976 Ky. Acts ch. 38, sec. 1, effective July 1, 1976. -- Amended 1974 Ky. Acts ch. 210, sec. 4, effective June 21, 1974. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 30.

KRS 304.2-310 Administrative procedures -- Hearings

304.2-310. Administrative procedures -- Hearings (1) The commissioner may hold a hearing, without request by others, for any purpose within the scope of this code. (2) The commissioner shall hold a hearing: (a) If required by any other provision of this code; or (b) Upon written application for a hearing by a person aggrieved by any act, threatened act, or failure of the commissioner to act, or by any report, administrative regulation, or order of the commissioner (other than an order for the holding of a hearing, or a final order entered after a hearing, of which hearing the person had notice). Any application for a hearing shall be filed in the department within sixty (60) days after the person knew or reasonably should have known, of the act, threatened act, failure, report, administrative regulation, or order, unless a different period is provided for by other laws applicable to the particular matter, in which case the other law shall govern. (3) Any application for a hearing shall briefly state the respects in which the applicant is so aggrieved, together with the grounds to be relied upon as a basis for the relief to be sought at the hearing. (4) If the commissioner finds that the application is made in good faith, that the applicant would be so aggrieved if his or her grounds are established, the commissioner shall hold the hearing in accordance with KRS Chapter 13B. (5) Pending the hearing and the issuance of the final order resulting from the hearing, the commissioner shall suspend or postpone the effective date of the previous action. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 948, effective July 15, 2010. -- Amended 1996 Ky. Acts ch. 318, sec. 227, effective July 15, 1996. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 31, effective June 18, 1970.

KRS 304.2-320 Notice of hearing

304.2-320. Notice of hearing (1) Notice of hearings shall be given in accordance with the provision of this chapter and KRS Chapter 13B. If the persons to be given notice are not specified in the provision pursuant to which the hearing is held, the commissioner shall give notice to all persons whose pecuniary interest, to the commissioner's knowledge or belief, are to be directly and immediately affected by the hearing. (2) If any hearing is to be held for consideration of matters which, under subsection (1) of this section, would otherwise require separate notice to more than thirty (30) persons, in lieu of other notice the commissioner may give notice of the hearing by publication pursuant to KRS Chapter 424; but the commissioner shall mail this notice to all persons who had requested the same in writing in advance and have paid to the commissioner the reasonable amount fixed by him or her to cover the cost thereof. The costs associated with the publication of a notice of hearing shall be borne by the person seeking the hearing. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 949, effective July 15, 2010; and ch. 25, sec. 2, effective July 15, 2010. -- Amended 1996 Ky. Acts ch. 318, sec. 228, effective July 15, 1996. -- Amended 1986 Ky. Acts ch. 437, sec. 6, effective July 15, 1986. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 32, effective June 18, 1970. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 25, which do not appear to be in conflict and have been codified together.

KRS 304.2-330 Repealed, 1996

304.2-330. Repealed, 1996 Catchline at repeal: Conduct of hearing. History: Repealed 1996 Ky. Acts ch. 318, sec. 357, effective July 15, 1996. -- Amended 1982 Ky. Acts ch. 320, sec. 7, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 32, effective June 18, 1970.

KRS 304.2-340 Witnesses and evidence

304.2-340. Witnesses and evidence (1) The commissioner or an authorized designee conducting a hearing, examination, or investigation by his or her authority shall have power to subpoena witnesses, compel their attendance, administer oaths, examine any person under oath relative to the subject of the hearing, examination, or investigation, and to compel any person to subscribe to his or her testimony after it has been correctly reduced to writing, and, in connection therewith, to require the production of any books, papers, records, correspondence, or other documents which the commissioner deems relevant to the inquiry. (2) A subpoena issued pursuant to this section shall have the same force and effect as if issued from a court of record. (3) A subpoena issued pursuant to this section shall be served in the same manner as if issued from a court of record, except a subpoena may be served upon any person holding a license or a certificate of authority from the commissioner or upon the employee of the person or entity in the same manner as other orders and notices are served, as provided in KRS 304.2-120. (4) If any individual or licensee refuses to comply with a subpoena or to testify as to any matter concerning which the individual or licensee may be lawfully interrogated: (a) The Circuit Court of the county wherein the examination, investigation, or hearing is being conducted or of the county wherein the individual or licensee resides, on the commissioner's application may, after summary hearing, issue an order requiring the individual or licensee to comply with the subpoena and to testify; and failure to obey an order may be punished by the court as a contempt thereof; and (b) The commissioner may suspend or revoke the certificate of authority or license of any licensee or impose an administrative fine, or both, for failure of the licensee or the employee of any licensee to comply. (5) Witness fees and mileage, if claimed, shall be allowed the same as for testimony in a Circuit Court, but no officer, director, agent or employee of an insurer or person being examined or investigated shall be entitled to witness or mileage fees. (6) Any individual willfully testifying falsely under oath as to any material to any examination, investigation, or hearing shall upon conviction thereof be guilty of perjury. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 950, effective July 15, 2010. -- Amended 1994 Ky. Acts ch. 93, sec. 3, effective July 15, 1994. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 34, effective June 18, 1970.

KRS 304.2-350 Testimony compelled -- Immunity from prosecution

304.2-350. Testimony compelled -- Immunity from prosecution (1) If any person asks to be excused from attending or testifying or from producing any books, papers, records, contracts, documents, or other evidence in connection with any examination, hearing, or investigation being conducted by the commissioner, his or her deputy or examiner, or in any proceeding or action before any court upon a charge of violation of this code, on the ground that the testimony or evidence required of the person may tend to incriminate the person or subject the person to a penalty or forfeiture, and shall notwithstanding be directed to give testimony or produce evidence, the person must, if so directed by the commissioner and the Attorney General, nonetheless comply with the direction; but the person shall not thereafter be prosecuted or subjected to any criminal penalty or forfeiture for or on account of any transaction, matter, or thing concerning which the person may have so testified or produced evidence, and no testimony so given or evidence produced shall be received against the person upon any criminal action, investigation, or proceeding; except, however, that no person so testifying shall be exempt from prosecution or punishment for any perjury committed by the person in giving testimony, and the testimony or evidence so given or produced shall be admissible against the person upon any criminal action, investigation, or proceeding concerning perjury. (2) Any individual may execute, acknowledge, and file in the department a statement expressly waiving immunity or privilege in respect to any transaction, matter, or thing specified in a statement, and thereupon the testimony of the individual or the evidence in relation to the transaction, matter, or thing may be received or produced before any judge, court, tribunal, grand jury, or otherwise, and if so received or produced the individual shall not be entitled to any immunity or privileges on account of any testimony he or she may so give or evidence so produced. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 951, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 483, sec. 6, effective July 15, 1998. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 269, effective January 2, 1978. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 35, effective June 18, 1970.

KRS 304.2-360 Order on hearing

304.2-360. Order on hearing (1) In the conduct of hearings under this code and making a final order thereon, the commissioner shall act in a quasijudicial capacity and in accordance with the provisions of this chapter and KRS Chapter 13B. (2) With respect to hearings held concerning merger, consolidation, bulk reinsurance, conversion, affiliation, or change of control of a domestic insurer as provided in Subtitle 24, or in Subtitle 37 of this chapter, where notice of the hearing was given to all stockholders and policyholders or to all stockholders of an insurer involved, the commissioner is required to give a copy of the order on hearing to the corporation and insurer parties, to intervening parties, to a reasonable number of stockholders or policyholders as representative of the class, and to other parties only upon written request of such parties. (3) A final order may require that restitution be made to any person aggrieved by a violation of any provisions of this chapter, any statute administered by the commissioner, or any regulation of the commissioner. (4) An order prepared by the commissioner's designee and approved in writing by the commissioner shall be considered the commissioner's order. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 952, effective July 15, 2010. -- Amended 2004 Ky. Acts ch. 24, sec. 4, effective July 13, 2004. -- Amended 1996 Ky. Acts ch. 318, sec. 229, effective July 15, 1996. -- Amended 1986 Ky. Acts ch. 437, effective July 15, 1986. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 36, effective June 18, 1970.

KRS 304.2-370 Appeal from the commissioner

304.2-370. Appeal from the commissioner (1) An appeal from the commissioner shall be taken only from a final order on hearing and in accordance with KRS Chapter 13B. (2) The appeal shall be granted as a matter of right, and shall be taken to the Franklin Circuit Court. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 953, effective July 15, 2010. -- Amended 1996 Ky. Acts ch. 318, sec. 230, effective July 15, 1996. -- Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 37, effective June 18, 1970.

KRS 304.2-380 Repealed, 1980

304.2-380. Repealed, 1980 Catchline at repeal: Insurance regulatory board established - Members - Terms - Compensation - Duties. History: Repealed 1980 Ky. Acts ch. 187, sec. 23, effective July 15, 1980. -- Created 1978 Ky. Acts ch. 155, sec. 132, effective June 17, 1978.

KRS 304.2-390 Repealed, 1986

304.2-390. Repealed, 1986 Catchline at repeal: Insurance administration improvement fund. History: Repealed 1986 Ky. Acts ch. 437, sec. 40, effective July 15, 1986. -- Created 1982 Ky. Acts ch. 320, sec. 50, effective July 15, 1982.

KRS 304.2-400 Insurance regulatory trust fund -- Use

304.2-400. Insurance regulatory trust fund -- Use (1) There is created in the State Treasury a trust fund designated the "Insurance Regulatory Trust Fund" to which shall be credited all payments received under KRS 304.4-010. (2) The moneys so received and deposited in the insurance regulatory trust fund shall be appropriated for use only by the department to defray the expenses of the department in discharge of its administrative and regulatory powers and duties as prescribed by law subject to the applicable laws relating to the appropriation of state funds and to the deposit and expenditure of state moneys. The department shall be responsible for the proper expenditure of these moneys as provided by law. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 954, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 213, sec. 1, effective July 15, 1998. -- Amended 1988 Ky. Acts ch. 225, sec. 21, effective July 15, 1988. -- Created 1986 Ky. Acts ch. 437, sec. 35, effective July 15, 1986. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, G, 2, b, (25) at 2088. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, L, 7, (4) at 2111. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, L, 7, (6) at 2111. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, L, 7, (7) at 2111. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, L, 8, (1) at 2112.

KRS 304.2-410 Investment of insurance regulatory trust fund

304.2-410. Investment of insurance regulatory trust fund (1) It is the responsibility of the department, which is charged with the administration of the insurance regulatory trust fund, to make such moneys available for investment as fully as is consistent with the cash requirements of the fund and to authorize investment of such moneys by the agency or agencies of the Commonwealth of Kentucky authorized to make investments and reinvestments for and on behalf of any agency of the Commonwealth of Kentucky. (2) Monthly, and more often as circumstances require, the department shall notify the investing authority of the amount available for investment, and the moneys shall be invested by the investing authority according to the laws relating to state investments. Such notification shall include the name and number of the fund for which the investments are to be made and the life of the investment if the principal sum is to be required for meeting obligations. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 955, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 213, sec. 2, effective July 15, 1998. -- Created 1986 Ky. Acts ch. 437, sec. 36, effective July 15, 1986.

KRS 304.2-420 Transfer of funds to insurance regulatory trust fund to cover deficiency

304.2-420. Transfer of funds to insurance regulatory trust fund to cover deficiency When there exists in the insurance regulatory trust fund a deficiency which would render such fund insufficient to meet the department's funding requirements, the secretary of the Finance and Administration Cabinet may order a transfer of moneys from another fund in the State Treasury to the insurance regulatory trust fund in order to meet the deficiency without resorting to the necessity of borrowing money and paying interest thereon. The fund from which any moneys are transferred shall be repaid the amount transferred from it not later than the end of the biennium in which such transfer is made, the date of repayment to be specified in the order of the secretary of the Finance and Administration Cabinet. Effective: July 15, 1986 History: Created 1986 Ky. Acts ch. 437, sec. 37, effective July 15, 1986.

KRS 304.2-430 Payment of expenses of department from general fund -- Reimbursement

304.2-430. Payment of expenses of department from general fund -- Reimbursement Nothing in KRS 304.2-400 to 304.2-420 shall prevent continuing the practice of paying any of the direct or indirect expenses incurred by the department, including, but not limited to, those involving salaries, retirement, and Social Security of officers, employees, or representatives of the department, or any other expenses by appropriations from the general fund. However, the general fund shall be reimbursed for any such payments made on or after July 15, 1986, as well as any money transferred to the insurance regulatory trust fund in connection with the initial funding of the insurance regulatory trust fund, and shall be repaid by transfer from the insurance regulatory trust fund to the general fund no later than the end of the next biennium. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 956, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 492, sec. 1, effective July 14, 2000. -- Created 1986 Ky. Acts ch. 437, sec. 38, effective July 15, 1986. Legislative Research Commission Note (7/14/2000). 2000 Ky. Acts ch. 492, sec. 1 states that it is amending this statute. The entire change to the statute proposed in the introduced version of House Bill 709 was eliminated, however, by House Committee Amendment 1, which passed the House of Representatives, but the section amending the statute was mistakenly not deleted from the bill.

KRS 304.2-440 Assessment of insurers

304.2-440. Assessment of insurers (1) As used in this section, "insurer" means assessment or cooperative insurers, insurers, fraternal benefit societies, nonprofit hospital, medical-surgical, dental, and health service corporations, health maintenance organizations, and prepaid dental plan organizations. (2) If the commissioner finds that there are insufficient funds for operations of the department, the commissioner may make an assessment on all insurers not to exceed .000235 of net direct written premium from Kentucky as reported in insurers' annual statements for the immediately preceding calendar year. In making each assessment, the commissioner may establish a minimum assessment. Assessments made pursuant to this section shall be in addition to all other taxes, assessments, and fees. (3) Overdue payment of any assessments shall bear interest at the tax interest rate as set forth in KRS 131.010(6) from the date due until paid. Any unpaid assessment may be recovered in an action brought thereon in the name of the department in the Franklin Circuit Court or in any other court of appropriate jurisdiction. Such interest penalty is separate from other penalties applicable to violations of KRS Chapter 299 and this chapter and such an action is separate from any other means of collecting an assessment under KRS Chapter 299 or this chapter. (4) All funds derived from assessments made pursuant to this section shall be deposited in the insurance regulatory trust fund. However, funds derived from assessments made pursuant to this section shall not lapse to the general fund, but shall at all times be available to defray expenses of the department in discharge of its administrative and regulatory powers. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 957, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 213, sec. 3, effective July 15, 1998. -- Created 1988 Ky. Acts ch. 225, sec. 22, effective July 15, 1988.

KRS 304.2-450 Strengthen Kentucky Homes Program -- Purpose -- Fund -- Administrative regulations

304.2-450. Strengthen Kentucky Homes Program -- Purpose -- Fund -- Administrative regulations (1) As used in this section: (a) "Insurable dwelling": 1. Means a dwelling located or situated on, or affixed to, residential real estate; and 2. Includes a single-family or multifamily dwelling, including a modular home; (b) "SKH approved contractor" means a person that has been determined by the commissioner pursuant to an administrative regulation promulgated in accordance with subsection (5) of this secti on to be eligible and approved to mitigate insurable dwellings under the Strengthen Kentucky Homes Program; (c) "SKH online portal" means an online portal through which a person seeking to become an SKH approved contractor is required to submit documents t o the department pursuant to an administrative regulation promulgated in accordance with subsection (5) of this section; and (d) "Strengthen Kentucky Homes Program" or "program" means the Strengthen Kentucky Homes Program created in this section. (2) The Strengthen Kentucky Homes Program is hereby created for the purpose of providing financial grants to real property owners, SKH approved contractors, and nonprofit organizations to assist and promote the mitigation of insurable dwellings to resist losses due to catastrophic wind and hail events in accordance with FORTIFIED construction standards published by the Insurance Institute for Business and Home Safety or a successor entity. (3) To the extent funding is available under subsection (4) of this section, the commissioner shall implement and administer the program in accordance with this section. (4) (a) The Strengthen Kentucky Homes Program fund is hereby created in the State Treasury. (b) The following shall be deposited into the fund: 1. All grants and funds received or raised by the commissioner under paragraph (e) of this subsection; and 2. Any appropriations made to the fund by the General Assembly. (c) Notwithstanding KRS 45.229: 1. Moneys in the fund not expended at the close of a fiscal year shall not lapse but shall be carried forward to the next fiscal year; and 2. Any interest earnings of the fund shall become part of the fund and shall not lapse. (d) Moneys in the fund are hereby appropriated by the General Assembly and shall be available to the commissioner for use in implementing and administering the program, except the commissioner shall not make financial grants under subsection (7) of this section that exceed, in aggreg ate, fifteen thousand dollars ($15,000). (e) The commissioner shall use his or her best efforts to seek and obtain grants or funds from the federal government or other funding sources for deposit into the fund to supplement any appropriations to the fund made by the General Assembly. (5) (a) Except as provided in subsection (7) of this section, the commissioner shall promulgate administrative regulations in accordance with KRS Chapter 13A to create and establish: 1. Application forms and procedures for seeking a financial grant; 2. The eligibility criteria, requirements, and procedures for obtaining a financial grant, which may include but are not limited to providing financial grants to: a. Real property owners to mitigate owner -occupied insurable dwellings; and b. Nonprofit organizations to improve the wind and hail resilience of single-family insurable dwellings occupied or owned by low - income and moderate-income individuals; 3. If the commissioner provides financial grants to mitigate insurable dwellings: a. i. The building standards or techniques that are required for the mitigation, which shall include but are not limited to compliance 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. ii. The commissioner shall determine through the promulgation of an administrative regulation under this subsection the specific standards and designations that are required for any insurable dwelling; and b. Eligibility criteria for building contractors and evaluators that are eligible to mitigate and inspect the insurable dwellings, respectively, which shall include a preference for Kentucky building contractors and evaluators; and 4. The procedures and requirements for distributing financial grants. (b) The commissioner may promulgate administrative regulations in accordance with KRS Chapter 13A to establish any additional rules and eligibility requirements that are necessary for the proper implementation and administration of this section, including but not limited to the collection of documentation necessary to allow for any auditing of the program that is required under the terms of a grant or other funds received by the program. (6) Any financial grant provided under the program to mitigate an insurable dwelling shall be contingent upon the real property owner securing all required permits and applicable inspections in accordance with local building codes. (7) (a) The commissioner shall make one (1) time financial grants in accordance with this subsection to SKH approved contractors to reimburse each contractor for the cost of an initial certification by the Insurance Institute for Business and Home Safety or a successor entity to act as a CERTIFIED Roofing contractor. (b) In order to receive reimbursement under this subsection, an SKH approved contractor shall upload the following documents through the SKH online portal: 1. A request for reimbursement under this subsection; and 2. A receipt or other documentation from the Insurance Institute for Business and Home Safety or a successor entity that states: a. The contractor's name and address, which shall match the name and address that is on file with the department; b. That the contractor is certified to act as a CERTIFIED R oofing contractor; c. The date the receipt or other documentation was issued; and d. The cost paid for the certification referenced in subdivision b. of this subparagraph. (c) Upon compliance with paragraph (b) of this subsection by an SKH approved contractor, the commissioner shall, to the extent funding is available under subsection (4) of this section, make a one (1) time financial grant to the contractor in the amount of the cost paid for the certification. (d) Financial grants made under this subsectio n shall be made to SKH approved contractors in the order that the contractors satisfy the requirements of paragraph (b) of this subsection. (e) Checks shall be mailed to the address of the contractor's choice. (f) The commissioner shall not be required to establish additional forms, procedures, or requirements, by administrative regulation or otherwise, in order to implement, or distribute financial grants under, this subsection. (8) Nothing in this section shall be construed to create an entitlement for pr operty owners, SKH approved contractors, or nonprofit organizations to obtain funds for, or obligate the state in any way to fund, or maintain funding for, any activity for which a financial grant is permitted or provided under this section. Effective: April 7, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 5, effective April 7, 2026. -- Created 2024 Ky. Acts ch. 102, sec. 1, effective July 15, 2024. 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.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38686Fetched: 10/20/2026