Insurance Fraud

KRS tit. XXV, ch. 304, subtit. 47

in effect

KRS 304.47-010 Definitions for subtitle

304.47-010. Definitions for subtitle As used in this subtitle, unless the context requires otherwise: (1) "Criminal syndicate" means five (5) or more persons collaborating to promote or engage in any fraudulent insurance act, as set forth in KRS 304.47-020(1), on a continuing basis; (2) "Division" means the Division of Insurance Fraud Investigation of the Kentucky Department of Insurance, its employees, or authorized representatives; (3) "Insurance policy" or "policy" means any individual or group policy, including those defined by KRS Chapter 342, certificate, or contract of an insurer, including reinsurance affecting the rights of any Kentucky resident or bearing a reasonable relation to Kentucky regardless of whether delivered or issued for delivery in Kentucky; (4) "Insured" means any person who is a named insured or beneficiary under an insurance policy or a person who is not a named insured or beneficiary under an insurance policy due to the fraudulent action of another, but who in good faith believes himself or herself to be an insured or beneficiary; (5) "Insurer" means any person, entity, organization, or reinsurer, including fraternal benefit societies as defined in Subtitle 29 of this chapter, nonprofit hospital, medical-surgical, dental, and health service corporation as defined in Subtitle 32 of this chapter, health maintenance organization as defined in Subtitle 38 of this chapter, prepaid dental plan organization as defined in Subtitle 43 of this chapter, or unauthorized insurer as defined in Subtitle 11 of this chapter, subject to regulation by or registration with the Department of Insurance under this chapter, and any "carrier," "self-insurer," or "insurance carrier" as defined by KRS Chapter 342; (6) "Law enforcement agency" means any federal, state, county, or consolidated police or law enforcement department and any prosecuting official of the federal, state, county, local, or consolidated government; and (7) "Statement" includes but is not limited to any notice, statement, proof of loss, bill of lading, invoice, account, estima te of property or casualty damages, bid or proposal relating to property or casualty damages, bill for services, diagnosis, prescription, hospital or physician record or report, X -ray, test result, or other evidence of loss, injury, or expense that is in any form, including oral, written, and electronic transmissions. Effective: June 27, 2025 History: Amended 2025 Ky. Acts ch. 25, sec. 1, effective June 27, 2025. -- Amended 2010 Ky. Acts ch. 24, sec. 1581, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 253, sec. 3, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 213, sec. 6, effective July 15, 1998. -- Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 86, effective December 12, 1996. -- Created 1994 Ky. Acts ch. 496, sec. 17, effective July 15, 1994.

KRS 304.47-020 Fraudulent insurance acts -- Enforcement and penalties -- Compensatory damages -- Concurrent jurisdiction of Attorney General -- Reporting of fraudulent acts -- Application of section

304.47-020. Fraudulent insurance acts -- Enforcement and penalties -- Compensatory damages -- Concurrent jurisdiction of Attorney General -- Reporting of fraudulent acts -- Application of section (1) For the purposes of this subtitle, a per son or entity commits a "fraudulent insurance act" if he or she engages in any of the following, including but not limited to matters relating to workers' compensation: (a) Knowingly and with intent to defraud or deceive presents, causes to be presented, or prepares with knowledge or belief that it will be presented to an insurer, Board of Claims, Special Fund, or any agent thereof: 1. Any written or oral statement as part of, or in support of, a claim for payment or other benefit pursuant to an insurance p olicy or from a "self- insurer" as defined by KRS Chapter 342, knowing that the statement contains any false, incomplete, or misleading information concerning any fact or thing material to a claim; 2. To the extent not otherwise included under subparagraph 1. of this paragraph, any statement that misrepresents the scope of damages, including repair costs and other expenses, associated with a property, casualty, or property and casualty insurance claim, including any claim for towing or storage benefits under a property, casualty, or property and casualty insurance policy, except this subparagraph shall not apply to offers or counteroffers by legal counsel representing a plaintiff or defendant in a disputed claim involving bodily injury; or 3. Any statement as part of, or in support of, an application for an insurance policy, for renewal, reinstatement, or replacement of insurance, or in support of an application to a lender for money to pay a premium, knowing that the statement contains any false, incomplete, or misleading information concerning any fact or thing material to the application; (b) Knowingly and willfully transacts any contract, agreement, or instrument which violates this title; (c) Knowingly and with intent to defraud or deceive: 1. Receives money for the purpose of purchasing insurance, and fails to obtain insurance; 2. Fails to make payment or disposition of money or voucher as defined in KRS 304.17A-750, as required by agreement or legal obligation, that comes into his or her possession while acting as a licensee under this chapter; 3. Presents, causes to be presented, or prepares with knowledge or belief that it will be presented to or by an insurer, or to the commissioner, any statement, knowing that the statement contains any false, incomplete, or misleading information concerning any material fact or thing, as part of, or in support of one (1) or more of the following: a. The rating of an insurance policy; b. The financial condition of an insurer; c. The formation, acquisition, merger, reconsolidation, dissolution, or withdrawal from one (1) or more lines of insurance i n all or part of this Commonwealth by an insurer; or d. A document filed with the commissioner; or 4. Engages in any of the following: a. Solicitation or acceptance of new or renewal insurance risks on behalf of an insolvent insurer; or b. Removal, concealment, alteration, tampering, or destruction of money, records, or any other property or assets of an insurer; (d) Issues or knowingly presents fake or counterfeit insurance policies, certificates of insurance, insurance identification cards, insurance bind ers, or any other documents that purport to evidence insurance; (e) Makes any false or fraudulent representation as to the death or disability of a policy or certificate holder in any written statement or certificate for the purpose of fraudulently obtaining money or benefit from an insurer; (f) Engages in unauthorized insurance, as set forth in KRS 304.11 -030; (g) Violates KRS 367.628(2)(a); or (h) Assists, abets, solicits, or conspires with another to commit a fraudulent insurance act in violation of this subtitle. (2) A person convicted of a violation of subsection (1) of this section shall be guilty of a Class A misdemeanor, unless the aggregate of the claim, benefit, or money referred to in subsection (1) of this section is: (a) Five hundred dollars ($500) or more but less than ten thousand dollars ($10,000), in which case it is a Class D felony; (b) Ten thousand dollars ($10,000) or more but less than one million dollars ($1,000,000), in which case it is a Class C felony; or (c) One million dollars ($1,000,000) or more, in which case it is a Class B felony. (3) A person, with the purpose to establish or maintain a criminal syndicate or to facilitate any of its activities, shall be guilty of engaging in organized crime, a Class B felony, if he or she engages in any of the activities set forth in KRS 506.120(1). (4) A person convicted of a crime established in this section shall be punished by: (a) Imprisonment for a term: 1. Not to exceed the period set forth in KRS 532.090 if the crime is a Class A misdemeanor; or 2. Within the periods set forth in KRS 532.060 if the crime is a Class D, C, or B felony; (b) A fine, per occurrence, of: 1. For a misdemeanor, not more than one thousand dollars ($1,000) per individual nor five thousand dollars ($5,000) per corp oration or twice the amount of gain received as a result of the violation, whichever is greater; or 2. For a felony, not more than ten thousand dollars ($10,000) per individual nor one hundred thousand dollars ($100,000) per corporation, or twice the amount of gain received as a result of the violation; whichever is greater; or (c) Both imprisonment and a fine, as set forth in paragraphs (a) and (b) of this subsection. (5) (a) In addition to imprisonment, the assessment of a fine, or both, a person convicted of a crime established in this section may be ordered to make restitution to any victim who suffered a monetary loss due to any actions by that person which resulted in the adjudication of guilt, and to the division for the cost of any investigation. (b) The amount of restitution shall equal the monetary value of the actual loss or twice the amount of gain received as a result of the violation, whichever is greater. (6) Any person damaged as a result of a violation of any provision of this section shall have a cause of action in a court of competent jurisdiction to recover compensatory damages, plus all reasonable investigation and litigation expenses, including attorney's fees. (7) (a) The Attorney General shall have concurrent jurisdiction to investigate and prosecute violations of this section in accordance with KRS 15.235. (b) The Attorney General, a Commonwealth's attorney, or a county attorney shall refer to the commissioner any report, investigation, or discovery of a fraudulent insurance act that is received, initiated, or discovered by the Attorney General, Commonwealth's attorney, or county attorney unless the fraudulent insurance act has been previously reported to the commissioner. (8) (a) The provisions of this section shall also apply to any agent, unauthorized insurer or its agents or representatives, or surplus lines carrier who, with intent, injures, defrauds, or deceives any claimant with regard to any claim. (b) The claimant shall have the right to recover the damages provided in subsection (6) of this section. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 54, sec. 7, effective July 15, 2026; and ch. 149, sec. 5, effective July 15, 2026. -- Amended 2025 Ky. Acts ch. 25, sec. 2, effective June 27, 2025. -- Amended 2021 Ky. Acts ch. 185, sec. 87, effective June 29, 2021. - - Amended 2019 Ky. Acts ch. 143, sec. 1, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 178, sec. 1, effective July 14, 2018. -- Amended 2017 Ky. Acts ch. 74, sec. 99, effective June 29, 2017. -- Amended 2010 Ky. Acts ch. 24, sec. 1582, effective July 15, 2010; and ch. 166, sec. 14, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 207, sec. 11, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 253, sec. 4, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 213, sec. 7, effective July 15, 1998. -- Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 87, effective December 12, 1996. -- Created 1994 Ky. Acts ch. 496, sec. 18, effective July 15, 1994. Legislative Research Commission Note (7/15/2026). This statute was amended by 2026 Ky. Acts chs. 54 and 149, which do not appear to be in conflict and have been codified together.

KRS 304.47-025 Felony offense involving dishonesty or breach of trust -- Fraudulent insurance act -- Penalties

304.47-025. Felony offense involving dishonesty or breach of trust -- Fraudulent insurance act -- Penalties (1) Any person who has been convicted of any felony offense involving dishonesty or a breach of trust, or who has been convicted of a fraudulent insurance act under this subtitle, and who knowingly engages or participates in the business of insurance in this Commonwealth, shall be guilty of a Class D felony. (2) Any insurer that knowingly permits the participation in the business of insurance in this Commonwealth by a person who has been convicted of any felony offense involving dishonesty or a breach of trust, or who has been convicted of a fraudulent insurance act under this subtitle, shall be guilty of a criminal violation. (3) Any person who has been convicted of any felony offense involving dishonesty or a breach of trust, or who has been convicted of a fraudulent insurance act under this subtitle, may engage in the business of insurance in this Commonwealth if he or she has received written consent from the commissioner, and that consent specifically refers to this subsection. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1583, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 253, sec. 1, effective July 14, 2000.

KRS 304.47-030 Required statements for applications and claims forms

304.47-030. Required statements for applications and claims forms (1) All applications shall contain a statement in a form approved by the Department of Insurance that clearly states in substance the following: "Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime." (2) All claim forms shall contain a statement in a form approved by the Department of Insurance that clearly states in substance the following: "Any person who knowingly and with intent to defraud any insurance company or other person files a statement of claim containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime." (3) Fraud warning statements shall not be required on applications or claim forms used by reinsurers. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1584, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 129, sec. 2, effective July 15, 1998. -- Created 1994 Ky. Acts ch. 496, sec. 19, effective July 15, 1994.

KRS 304.47-040 Division of Insurance Fraud Investigation -- Special investigators -- Resisting arrest or interfering with investigation

304.47-040. Division of Insurance Fraud Investigation -- Special investigators -- Resisting arrest or interfering with investigation (1) There is created within the Department of Insurance a Division of Insurance Fraud Investigation. (2) (a) The commissioner shall appoint qualified persons to serve as special investigators for the Division of Insurance Fraud Investigation who shall have general police powers including the power to arrest, and they shall possess all of the common law and statutory powers, privileges, and immunities of sheriffs, and their jurisdiction shall be coextensive with the state. (b) The division staff also shall include, at a minimum, three (3) special investigators, one (1) attorney, and one (1) administrative assistant. The positions authorized by this paragraph shall be in addition to the staff employed by the division as of December 12, 1996. (3) The special investigator may: (a) Administer oaths and affirmations; (b) Order the attendance of witnesses or proffering of information and documentation; (c) Collect evidence; and (d) Make arrests for criminal violations established as a result of its investigations. The general laws applicable to arrests by sheriffs of the Commonwealth shall also be applicable to special investigators, who may: 1. Execute arrest warrants and search warrants for the criminal violations revealed as a result of their investigations; 2. Serve subpoenas issued for the examination, investigation, and trial of all offenses determined by their investigations; and 3. Arrest upon probable cause without warrant any person found in the act of violating any of the provisions of applicable laws. (4) The division may implement its powers if, based upon its own inquiries or as a result of information received, it has reason to believe that a person has engaged in, is engaging in, or is about to engage in a fraudulent insurance act. (5) If the information the division seeks to obtain is located outside the state, the person so requested may make it available to the division or its representative to examine at the place where it is located. The division may designate representatives, including officials of the state in which the matter is located, to inspect the information on the division's behalf, and it may respond to similar requests from officials of other states. (6) It shall be unlawful for any person to resist an arrest authorized by this subtitle or in any manner to interfere, either by abetting or assisting this resistance or otherwise interfering, with special investigators employed by the commissioner under this subtitle in the duties imposed upon them by law, and shall be punishable as provided in KRS 520.090. (7) The commissioner may obtain any evidence for use in criminal investigations according to KRS 304.2-340. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1585, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 253, sec. 5, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 213, sec. 8, effective July 15, 1998. -- Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 37, effective December 12, 1996. -- Created 1994 Ky. Acts ch. 496, sec. 20, effective July 15, 1994.

KRS 304.47-050 Reports of possible fraudulent insurance acts -- Investigation -- Notification of prosecutor -- Immunity from civil liability

304.47-050. Reports of possible fraudulent insurance acts -- Investigation -- Notification of prosecutor -- Immunity from civil liability (1) Any person, other than those specified in subsection (2) of this section, having knowledge or believing that a fraudulent insurance act or any other act or practice which, upon conviction, constitutes a felony or misdemeanor under the subtitle is being or has been committed may send to the division a report of information pertinent to this knowledge of or belief and any additional relevant information the commissioner may request. (2) The following persons, having knowledge or believing that a fraudulent insurance act or any other act or practice which may constitute a felony or misdemeanor under this subtitle is being or has been committed, shall send to the division a report or information pertinent to the knowledge or belief and additional relevant information that the commissioner or the commissioner's employees or agents may require: (a) Any professional practitioner licensed or regulated by the Commonwealth, except as provided by law; (b) Any private medical review committee; (c) Any insurer, agent, or other person licensed under this chapter; (d) The following Kentucky boards: 1. Board of Medical Licensure; 2. Board of Chiropractic Examiners; 3. Board of Nursing; 4. Board of Physical Therapy; 5. Board of Licensure for Occupational Therapy; and 6. Board of Licensure for Massage Therapy; and (e) Any employee of the persons named in paragraphs (a) to (d) of this subsection. (3) The division or its employees or agents shall review this information or these reports and select the information or reports that, in the judgment of the division, may require further investigation. The division shall then cause an investigation of the facts surrounding the information or report to be made to determine the extent, if any, to which a fraudulent insurance act or any other act or practice which, upon conviction, constitutes a felony or misdemeanor under this subtitle is being committed. (4) The following shall provide the division access to all relevant information the commissioner may request: (a) The Department of Workers' Claims; and (b) The boards named in subsection (2)(d) of this section. (5) The division shall report any alleged violations of law which the investigations disclose to the appropriate licensing agency and the Commonwealth's attorney, Attorney General, or other prosecuting agency having jurisdiction with respect to a violation. If prosecution by the Commonwealth's attorney, Attorney General, or other prosecuting agency is not begun within sixty (60) days of the report, the prosecuting attorney shall inform the division of the reasons for the lack of prosecution. In addition to filing a report with the appropriate prosecuting agency, the commissioner may, through the Attorney General, prosecute violations of this subtitle in the Circuit Court of the county in which the alleged wrongdoer resides or has his or her principal place of business, in the Circuit Court of the county in which the fraudulent insurance act has been committed, or, with consent of the parties, in the Franklin Circuit Court. (6) Notwithstanding the provisions of subsections (1) to (5) of this section, any person having knowledge or believing that a fraudulent insurance act or any other act that may be prohibited under this subtitle is being or has been committed, may notify any law enforcement agency of his or her knowledge or belief and provide information relevant to the act, as may be requested by that agency, including, but not limited to, insurance policy information including the application for insurance, policy premium payment records, history of previous claims made by the insured, and other information relating to the investigation of the claim, including statements of any person, proofs of loss, and notice of loss. Reporting to any other agency does not relieve those listed in subsection (2) of this section of their mandatory duty to report to the division. (7) If the information referred to in this section is specifically requested by the division, any other law enforcement agency, or a prosecuting attorney, the insurer shall provide certified copies of the requested information within ten (10) business days of the request or as soon thereafter as reasonable. (8) In the absence of malice, fraud, or gross negligence, the following shall not be subject to any civil liability for libel, slander, or related cause of action by virtue of filing reports or for releasing or receiving any information pursuant to this subsection: (a) An insurer; (b) An agent authorized by an insurer to act on its behalf; (c) A law enforcement agency; (d) The Department of Workers' Claims; (e) The boards named in subsection (2)(d) of this section; (f) Employees of the persons named in paragraphs (d) and (e) of this subsection; or (g) An insured. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 143, sec. 2, effective June 27, 2019. -- Amended 2010 Ky. Acts ch. 24, sec. 1586, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 253, sec. 6, effective July 14, 2000; and ch. 262, sec. 32, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 213, sec. 9, effective July 15, 1998. -- Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 88, effective December 12, 1996. -- Created 1994 Ky. Acts ch. 496, sec. 21, effective July 15, 1994. Legislative Research Commission Note (12/12/96). Under KRS 7.136(1)(e), existing internal subsection references in subsections (6) and (7) of this statute have been adjusted to reflect the insertion of the new subsection (4) in this statute by 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 88 and the resulting renumbering of succeeding subsections.

KRS 304.47-055 Privileged and confidential information -- Permitted disclosure by commissioner

304.47-055. Privileged and confidential information -- Permitted disclosure by commissioner (1) Documents, materials, or other information in the possession or control of the commissioner that is provided according to this subtitle shall be confidential by law and privileged, and shall not be subject to the Kentucky Open Records Act, KRS 61.872 to KRS 61.884. These documents, materials, or other information shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action, unless, after notice to the commissioner and a hearing, a court of competent jurisdiction determines the commissioner would not be unnecessarily hindered. However, the commissioner may use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner's official duties. (2) Neither the commissioner nor any person who received documents, materials, or other information while acting under the authority of the commissioner shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subsection (1) of this section. (3) In order to assist in the performance of the commissioner's duties, the commissioner: (a) May share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to subsections (1) and (2) of this section, with other state, federal, and international regulatory agencies, with the National Association of Insurance Commissioners, its affiliates or subsidiaries, with the National Insurance Crime Bureau, and with local, state, federal, and international law enforcement authorities, if the recipient agrees to maintain the confidentiality and privileged status of the documents, materials, or other information; (b) May receive documents, materials, or other information, including otherwise confidential and privileged documents, materials, or information from the National Association of Insurance Commissioners, its affiliates or subsidiaries, from the National Insurance Crime Bureau, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential and privileged any documents, materials, or information received with notice or the understanding that it is confidential and privileged under the laws of the jurisdiction that is the source of the documents, materials, or information; and (c) May enter into agreements governing the sharing and use of information including the furtherance of any regulatory or legal action brought as part of the recipient's official duties. (4) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the commissioner under this subtitle or as a result of sharing as authorized in subsection (3) of this section. Effective: July 15, 2020 History: Amended 2020 Ky. Acts ch. 47, sec. 1, effective July 15, 2020. -- Amended 2010 Ky. Acts ch. 24, sec. 1587, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 253, sec. 2, effective July 14, 2000.

KRS 304.47-057 Publication of annual insurance fraud report on department's website

304.47-057. Publication of annual insurance fraud report on department's website Notwithstanding KRS 304.47-055, the commissioner shall publish for public distribution on the department's website an annual insurance fraud report that includes but is not limited to the following for the previous calendar year: (1) The number of insurance fraud reports made to the division; (2) The number and total dollar amount of cases or claims reported by the division under KRS 304.47-050 for prosecution; and (3) The number of cases or claims reported by the division under KRS 304.47-050 that were prosecuted and the outcome of the prosecutions. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 149, sec. 6, effective July 15, 2026.

KRS 304.47-060 Immunity of informant and of department employees

304.47-060. Immunity of informant and of department employees (1) In the absence of malice, fraud, or gross negligence, a person shall not be subject to civil liability for libel, slander, or any other relevant tort by virtue of filing reports or furnishing other information required by this chapter or requested by the division or its authorized representative. No civil cause of action of any nature shall arise against the person: (a) For any information relating to suspected fraudulent insurance acts furnished to or received from law enforcement officials, their agents, or employees; (b) For any information relating to suspected fraudulent insurance acts furnished to or received from other persons subject to the provisions of this subtitle, including those designated by KRS 304.47-080; (c) For any information furnished to or received from the Department of Workers' Claims, its agents, or employees; (d) For any information furnished in reports to the commissioner or the National Association of Insurance Commissioners; or (e) For any information relating to suspected fraudulent insurance acts furnished to or received from the National Insurance Crime Bureau or its successor organization. (2) The commissioner or any employee or agent of the department shall not be subject to civil liability for libel, slander, or any other relevant tort. No civil cause of action shall exist against these persons by virtue of the execution of official activities or duties of the commissioner or the division or by virtue of the publication of any report or bulletin related to the official activities or duties of the commissioner. (3) This subtitle shall not abrogate or modify any common law or statutory privilege or immunity enjoyed by any person. Effective: July 15, 2020 History: Amended 2020 Ky. Acts ch. 47, sec. 2, effective July 15, 2020. -- Amended 2010 Ky. Acts ch. 24, sec. 1588, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 253, sec. 7, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 213, sec. 10, effective July 15, 1998. -- Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 89, effective December 12, 1996. -- Created 1994 Ky. Acts ch. 496, sec. 22, effective July 15, 1994.

KRS 304.47-070 Costs of administration -- Use of money and property awarded to division as costs or fines

304.47-070. Costs of administration -- Use of money and property awarded to division as costs or fines All costs of administration and operation of the division shall be borne by the Department of Insurance. Any money or other property that is awarded to the division as costs of investigation or as a fine shall be credited to the Department of Insurance, and the money shall be used to help finance the division. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1589, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 253, sec. 8, effective July 14, 2000. -- Created 1994 Ky. Acts ch. 496, sec. 23, effective July 15, 1994.

KRS 304.47-080 Insurers to maintain investigative units

304.47-080. Insurers to maintain investigative units (1) Every insurer admitted to do business in the Commonwealth shall maintain effective procedures and resources to deter and investigate fraudulent insurance acts prohibited by this subtitle, including a unit that will investigate suspected fraudulent insurance acts. For the purpose of this section, "insurer" does not include reinsurers or reinsurance as defined in KRS 304.5-130. (2) Insurers may maintain the unit required by subsection (1) of this section, using its employees or by contracting with others for that purpose. (3) Insurers shall establish the unit required by this section no later than July 15, 1995. (4) The unit may include the assignment of fraud investigation to employees whose principal responsibilities are the investigation and disposition of claims. If an insurer creates a distinct unit, hires additional employees, or contracts with another entity to fulfill the requirements of this article, the additional cost incurred shall be included as an administrative expense. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 253, sec. 9, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 129, sec. 1, effective July 15, 1998. -- Created 1994 Ky. Acts ch. 496, sec. 24, effective July 15, 1994.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38767Fetched: 10/20/2026