Credit Life, Health, and Personal Property Insurance

KRS tit. XXV, ch. 304, subtit. 19

in effect

KRS 304.19-010 Scope of KRS 304.19-020 to 304.19-140

304.19-010. Scope of KRS 304.19-020 to 304.19-140 All life insurance and all health insurance in connection with loans or other credit transactions shall be subject to the provisions of KRS 304.19-020 to 304.19-140, except health insurance in connection with a loan or other credit transaction of more than five (5) years' duration or life insurance in connection with a loan or other credit transaction of more than ten (10) years' duration; nor shall insurance be subject to KRS 304.19-020 to 304.19-140, where the issuance of such insurance is an isolated transaction on the part of the insurer not related to an agreement or a plan for insuring debtors of the creditor. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 16, sec. 19, effective July 15, 2026. -- Amended 1980 Ky. Acts ch. 363, sec. 1, effective July 15, 1980. -- Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 1, effective June 18, 1970.

KRS 304.19-020 Definitions for KRS 304.19-020 to 304.19-140

304.19-020. Definitions for KRS 304.19-020 to 304.19-140 For the purpose of KRS 304.19-020 to 304.19-140: (1) "Credit health insurance" means insurance on a debtor to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy; (2) "Credit life insurance" means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction; (3) "Creditor" means the lender of money or vendor or lessor of goods, services, or property, rights or privileges, for which payment is arranged through a credit transaction, or any successor to the right, title or interest of any such lender, vendor, or lessor, and an affiliate, associate or subsidiary of any of them, or any director, officer or employee of any of them, or any other person in any way associated with any of them; (4) "Debtor" means a borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction; (5) "Indebtedness" means the total amount payable by a debtor to a creditor in connection with a loan or other credit transaction; and (6) "Joint credit life or credit health" shall mean insurance on the life of the debtor and the spouse of the debtor, partners, or any other legal cosigner. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 16, sec. 20, effective July 15, 2026. -- Amended 1980 Ky. Acts ch. 363, sec. 2, effective July 15, 1980. -- Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 2, effective June 18, 1970. Legislative Research Commission Note (7/15/2026). Under the authority of KRS 7.136, the reviser of statutes has renumbered the subsections in this statute during codification to place the terms in alphabetical order. The words in the text were not changed.

KRS 304.19-030 Forms of credit life insurance and credit health insurance

304.19-030. Forms of credit life insurance and credit health insurance Credit life insurance and credit health insurance shall be issued only in the following forms: (1) Individual policies of life insurance issued to debtors on the term plan; (2) Individual policies of health insurance issued to debtors on a term plan or disability benefit provisions in individual policies of credit life insurance; (3) Group policies of life insurance issued to creditors providing insurance upon the lives of debtors on the term plan; or (4) Group policies of health insurance issued to creditors on a term plan insuring debtors or disability benefit provisions in group credit life insurance policies to provide such coverage. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 19, sec.3, effective June 18, 1970.

KRS 304.19-040 Amounts of credit life insurance

304.19-040. Amounts of credit life insurance (1) The initial amount of credit life insurance shall not exceed the total amount repayable under the contract of indebtedness and, where an indebtedness is repayable in substantially equal installments, the amount of insurance shall at no time exceed the scheduled or actual amount of unpaid indebtedness, whichever is greater, provided that in the case of a group policy the amount of insurance may be reduced annually or at more frequent intervals, by a level percentage. (2) Notwithstanding subsection (1) of this section, insurance on agricultural credit transaction commitments not exceeding one (1) year in duration may be written up to the amount of the loan commitment, on a nondecreasing or level term plan. (3) Notwithstanding subsection (1) of this section, insurance on educational credit transaction commitments may be written for the amount of the portion of such commitment that has not been advanced by the creditor. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 4, effective June 18, 1970.

KRS 304.19-050 Amounts of credit health insurance

304.19-050. Amounts of credit health insurance The total amount of indemnity payable by credit health insurance in the event of disability, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of the indebtedness; and the amount of each periodic indemnity payment shall not exceed the original indebtedness divided by the number of periodic installments. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 5, effective June 18, 1970.

KRS 304.19-060 Term of insurance

304.19-060. Term of insurance (1) The term of any credit life insurance or credit health insurance shall, subject to acceptance by the insurer, commence on the date when the debtor becomes obligated to the creditor; except, that where a group policy provides coverage with respect to existing obligations, the insurance on a debtor with respect to such indebtedness shall commence on the effective date of the policy. (2) Where evidence of insurability is required and such evidence is furnished more than thirty (30) days after the date when the debtor becomes obligated to the creditor, the term of the insurance may commence on the date on which the insurer determines the evidence to be satisfactory, and in such event there shall be an appropriate refund or adjustment of any charge to the debtor for insurance. (3) The term of such insurance shall not extend more than fifteen (15) days beyond the original or revised scheduled maturity date of the indebtedness except when extended without additional cost to the debtor. (4) If the indebtedness is discharged due to renewal or refinancing prior to the scheduled maturity date, the insurance in force shall be terminated before any new insurance may be issued in connection with the renewed or refinanced indebtedness. In all cases of termination prior to scheduled maturity, a refund shall be paid or credited as provided in KRS 304.19-090. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 6, effective June 18, 1970.

KRS 304.19-070 Provisions of policies and certificates of insurance -- Disclosure to debtors

304.19-070. Provisions of policies and certificates of insurance -- Disclosure to debtors (1) All credit life insurance and credit health insurance shall be evidenced by an individual policy, or in the case of group insurance by a certificate of insurance, which individual policy or group certificate shall be delivered to the debtor. (2) Each individual policy or group certificate of credit life insurance and credit health insurance shall, in addition to other requirements of law: (a) Set forth the name and principal office address of the insurer, and the identity of the person or persons insured, by name in the case of individual policies; (b) Set forth the rate or amount of payment, if any, by the debtor separately for credit life insurance and credit health insurance, a description of the amount, term and coverage including any exceptions, limitations and restrictions; and (c) State that the benefits shall be paid to the creditor to reduce or extinguish the unpaid indebtedness and, wherever the amount of insurance may exceed the unpaid indebtedness, that any such excess shall be payable to a beneficiary, other than the creditor, named by the debtor or to his estate. (3) The individual policy or group certificate of insurance shall be delivered to the insured debtor at the time the indebtedness is incurred except as provided in this section. (4) If a debtor makes a separate payment for credit life or credit health insurance and an individual policy or group certificate of insurance is not delivered to the debtor at the time the indebtedness is incurred, a copy of the application for such policy or a notice of proposed insurance shall be delivered at such time to the debtor. The copy of the application or a notice of proposed insurance shall: (a) Set forth the identity by name or otherwise of the person or persons insured; (b) Set forth the rate or amount of payment by the debtor, if any, separately for credit life insurance and credit health insurance; (c) Contain a statement that within thirty (30) days, if the insurance is accepted by the insurer, there will be delivered to the debtor an individual policy or group certificate of insurance containing the name and principal office address of the insurer, a description of the amount, term and coverage including any exceptions, limitations and restrictions; and (d) Refer exclusively to insurance coverage, and be separate and apart from the loan, sale or other credit statement of account, instrument or agreement, unless the information required by this subsection is prominently set forth therein. (5) Upon acceptance of the insurance by the insurer and within thirty (30) days of the date upon which the indebtedness is incurred, the insurer shall cause the individual policy or group certificate of insurance to be delivered to the debtor. Such application or notice of proposed insurance shall state that upon acceptance by the insurer, the insurance shall become effective as provided in KRS 304.19-060. (6) If the named insurer does not accept the risk, then the debtor shall receive a refund of premium. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 7, effective June 18, 1970.

KRS 304.19-080 Filing -- Effectiveness and withdrawal

304.19-080. Filing -- Effectiveness and withdrawal (1) All such policies, certificates of insurance, notices of proposed insurance, applications for insurance, indorsements and riders delivered or issued for delivery in this state and the schedule of premium rates pertaining thereto shall be filed with the commissioner. (2) All life insurance and all health insurance in connection with loans or other credit transactions shall be subject to KRS 304.19 -020 to 304.19-140, except health insurance in connection with a loan or other credit transaction of more than fi ve (5) years' duration or life insurance in connection with a loan or other credit transaction of more than ten (10) years' duration; nor shall insurance be subject to KRS 304.19 - 020 to 304.19-140 where the issuance of such insurance is an isolated transac tion on the part of the insurer not relating to an agreement or a plan for insuring debtors of the creditor; nor shall insurance issued for an amount in excess of forty thousand dollars ($40,000) be subject to KRS 304.19 -020 to 304.19-140. (3) (a) Credit life insurance. The premium rates set forth hereunder, or actuarially equivalent, shall not exceed: 1. For decreasing term credit life insurance, a single premium of sixty cents ($0.60) per annum per one hundred dollars ($100) of scheduled indebtedness, or sixty-five cents ($0.65) per annum per one hundred dollars ($100) of scheduled indebtedness if dismemberment benefits are included in the policy; 2. Single premium rates for indebtedness repayable in monthly installments other than twelve (12) in number sh all not exceed one- twelfth (1/12) of the above premium rate multiplied by the number of full months in the scheduled period; 3. A premium payable monthly at the rate of ninety -two cents ($0.92) per one thousand dollars ($1,000) of outstanding unpaid insure d indebtedness or one dollar ($1) per one thousand dollars ($1,000) of outstanding unpaid insured indebtedness if dismemberment benefits are included in the policy, will be deemed the actuarial equivalent of the foregoing rates; and 4. For level term credit life insurance, a single premium of one dollar and twenty cents ($1.20) per annum per one hundred dollars ($100) of indebtedness or one dollar and thirty cents ($1.30) per one hundred dollars ($100) of indebtedness if dismemberment benefits are included in the policy. (b) 1. The standards set forth above are applicable to a plan of death benefits with or without requirements for evidence of insurability which contain no exclusions except for suicide; other exclusions must receive the approval of the commissioner. 2. Coverage shall be offered to all debtors regardless of age; or to all debtors not older than the applicable age limit which shall be not less than sixty-five (65) at the inception of the indebtedness or sixty-six (66) at the scheduled maturity date of the transaction, provided that each company's right to underwrite risks on an individual basis shall not be restricted by this subparagraph. Appropriate adjustments may be made with the approval of the commissioner if premium rates are determined according to the age of the insured debtor or by age brackets. 3. Rates for use with forms which are more restrictive in any material respect shall reflect such variations in lower rates. Similarly, forms providing more extensive benefits than set forth above may carry appropriately higher charges. 4. The standards set forth above shall be applicable to contracts which may contain a provision excluding or denying a claim for death, resulting from pre-existing illness, disease or physical condition for which the debtor received medical advice, consultation or treatment during the twelve (12) month period immediately preceding the effective date of the debtor's coverage and which would ordinarily be expected to affect materially the debtor's health during the period of coverage; provided, however, that after such coverage has been in force for six (6) months (twelve (12) months for contracts of more than three (3) years), this pre- existing exclusion clause shall not operate to deny coverage for any death thereafter. The contract shall contain no other provision which excludes or restricts liability in the event of death caused in a certain specified manner, except provisions excluding or restricting coverage in the event of intentionally self-inflicted injuries, foreign travel or residence, flight in nonscheduled aircraft, war or military service. (4) (a) Credit health insurance. The following premium rates, or actuarially equivalent rates, shall be charged for the coverages set forth hereunder: Single Premium Per $100 of Initial Indebtedness --------------------------------------------------------------------------------------------------------- Nonretroactive Basis Retroactive Basis Number of Monthly 14-Day 30-Day 14-Day 30-Day Installments Wait Wait Wait Wait --------------------------------------------------------------------------------------------------------- 1-6 months $ 1.51 $ .69 $2.02 $ .92 7-12 months 2.02 .91 2.69 1.22 13-19 months 2.50 1.56 3.33 2.08 20-24 months 2.93 1.84 3.91 2.45 25-30 months 3.28 2.34 4.37 3.12 31-36 months 3.85 2.77 5.14 3.70 37-48 months 4.77 3.67 6.36 4.89 49-60 months 5.68 4.58 7.58 6.11 -------------------------------------------------------------------------------------------------------- (b) 1. The standards set forth above shall be applicable to contracts which may contain a provision excluding or denying a claim for disability, resulting from pre-existing illness, disease or physical condition for which the debtor received medical advice, consultation or treatment during the twelve (12) month period immediately preceding the effective date of the debtor's coverage and which would ordinarily be expected to affect materially the debtor's health during the period of coverage; provided, however, that after such coverage has been in force for six (6) months (twelve (12) months for contracts of more than three (3) years), this pre- existing exclusion clause shall not operate to deny coverage for any disability commencing thereafter. The contract shall contain no other provision which excludes or restricts liability in the event of disability caused in a certain specified manner, except provisions excluding or restricting coverage in the event of pregnancy, intentionally self- inflicted injuries, foreign travel or residence, flight in nonscheduled aircraft, war or military service. 2. Coverage shall be offered to all debtors regardless of age, or to all debtors not older than the applicable age limit which shall be not less than sixty-five (65) at the inception of the indebtedness or sixty-six (66) at the scheduled maturity date of the transaction, provided that each company's right to underwrite risks on an individual basis shall not be restricted by this subparagraph. Appropriate adjustments may be made with the approval of the commissioner if premium rates are determined according to the age of the insured debtor or by age brackets. 3. Rates for use with forms which are more restrictive in any material respect shall reflect such variations in lower rates. Similarly, forms providing more extensive benefits than set forth above may carry appropriately higher charges. (5) Statistical reporting. Each insurer writing credit life or credit health insurance within this state shall keep and maintain statistical data of its experience on these kinds of insurance. The insurer shall, on or before May 1 of each year, file with the commissioner its statistical experience data for the year ending December 31 immediately preceding. Such experience shall be reported on forms conforming to those now or hereafter from time to time adopted by the National Association of Insurance Commissioners. (6) If a group policy has been delivered in this state before June 18, 1980, or has been or is delivered in another state before or on or after June 18, 1980, the insurer shall be required to file only the group certificate and notice of proposed insurance delivered or issued for delivery in this state as specified in subsections (2) and (4) of KRS 304.19-070, and such forms shall be approved by the commissioner if they conform with the requirements specified in such subsections and if the schedules of premium rates applicable to the insurance evidenced by such certificate or notice are not in excess of the insurer's schedules of premium rates filed with the commissioner. The premium rate in effect on existing group policies may be continued until the first policy anniversary date following June 18, 1980. After June 18, 1980, no borrower shall be added to an existing group policy at rates higher than those set forth in subsections (3) and (4) of this section. (7) The foregoing rates and procedures are deemed to be legislative prerogatives and shall not be subject to administrative or executive change or modification. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 16, sec. 21, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1302, effective July 15, 2010. -- Amended 1984 Ky. Acts ch. 204, sec. 1, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 339, sec. 1, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 363, sec. 3, effective July 15, 1980. -- Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 8, effective June 18, 1970.

KRS 304.19-082 Rates for credit health insurance coverage to credit union borrowers when coverage is not a loan condition

304.19-082. Rates for credit health insurance coverage to credit union borrowers when coverage is not a loan condition (1) Notwithstanding KRS 304.19-080, an insurer issuing credit health insurance coverage to credit union borrowers, when the coverage is not required as a condition of the loan, may use higher credit health insurance premium rates for specific credit unions if the rates for those credit unions have been filed with the commissioner, and within thirty (30) days of the filing the commissioner has not disapproved the rate as excessive in relation to the benefits provided. (2) In determining whether to disapprove any rate, the commissioner shall give due consideration to the morbidity costs with respect to the insurance, a reasonable margin for underwriting expenses, profits, contingencies and other reasonable costs and expenses attributable to the insurer, and costs and compensation to the creditor for providing and servicing the insurance, plus the premium taxes payable on the insurance. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1303, effective July 15, 2010. -- Created 1996 Ky. Acts ch. 25, sec. 1, effective July 15, 1996.

KRS 304.19-090 Premiums and refunds

304.19-090. Premiums and refunds (1) Any insurer may revise its schedules of premium rates from time to time, and shall file such revised schedules with the commissioner. No insurer shall issue any credit life insurance or credit health insurance policy for which the premium rate exceeds that determined by the schedules of such insurer as then on file with the commissioner. (2) Each individual policy or group certificate shall provide that in the event of termination of the insurance prior to the scheduled maturity date of the indebtedness, any refund of an amount paid by the debtor for insurance shall be paid or credited promptly to the person entitled thereto. The commissioner shall prescribe a minimum refund and no refund which would be less than such minimum need be made. The formula to be used in computing such refund shall be filed with and approved by the commissioner. Nothing contained in this section shall require the debtor to surrender any policy or group certificate for cancellation or termination solely because the indebtedness has been paid in full prior to the scheduled maturity date nor require the insurer to return any premiums. (3) When a debtor purchases credit life insurance or credit health insurance and an individual policy or group certificate of insurance is not issued, the creditor shall immediately give written notice to such debtor and shall promptly make an appropriate credit to the account. (4) The amount charged to a debtor for any credit life insurance or credit health insurance shall not exceed the premiums charged by the insurer, as computed at the time the charge to the debtor is determined. (5) Nothing in KRS 304.19-020 to 304.19-140 shall be construed to authorize any payments for insurance now prohibited under any statute, or rule thereunder, governing credit transactions. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 16, sec. 22, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1304, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 9, effective June 18, 1970.

KRS 304.19-100 Issuance of policies

304.19-100. Issuance of policies All policies of credit life insurance and credit health insurance shall be delivered or issued for delivery in this state only by an insurer authorized to do an insurance business herein, and shall be issued only through holders of licenses, or authorization issued by the commissioner. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1305, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 10, effective June 18, 1970.

KRS 304.19-110 Claims

304.19-110. Claims (1) All claims shall be promptly reported to the insurer or its designated claim representative, and the insurer shall maintain adequate claim files. All claims shall be settled as soon as possible and in accordance with the terms of the insurance contract. (2) All claims shall be paid either by draft drawn upon the insurer or by check of the insurer to the order of the claimant to whom payment of the claim is due pursuant to the policy provisions, or upon direction of such claimant to one specified. (3) No plan or arrangement shall be used whereby any person, firm or corporation other than the insurer or its designated claim representative shall be authorized to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in adjusting claims; provided, that a group policyholder may, by arrangement with the group insurer, draw drafts or checks in payment of claims due to the group policyholder subject to audit and review by the insurer. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 11, effective June 18, 1970.

KRS 304.19-120 Choice of insurer

304.19-120. Choice of insurer When credit life insurance or credit health insurance is required as additional security for any indebtedness, the debtor shall, upon request to the creditor, have the option of furnishing the required amount of insurance through existing policies of insurance owned or controlled by him or of procuring and furnishing the required coverage through any insurer authorized to transact an insurance business within this state. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 12, effective June 18, 1970.

KRS 304.19-130 Administrative hearing

304.19-130. Administrative hearing Whenever the commissioner finds that there has been a violation of KRS 304.19-020 to 304.19-140 or any administrative regulations promulgated pursuant thereto, the commissioner shall conduct a hearing in accordance with this chapter and KRS Chapter 13B. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 16, sec. 23, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1306, effective July 15, 2010. -- Amended 1996 Ky. Acts ch. 318, sec. 238, effective July 15, 1996. -- Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 13, effective June 18, 1970.

KRS 304.19-140 Suicide clause

304.19-140. Suicide clause A credit life insurance policy may include a provision excluding or denying a claim for death in the event of suicide within six (6) months (twelve (12) months for contracts of more than three (3) years) after purchase of the policy. Effective: July 15, 1980 History: Created 1980 Ky. Acts ch. 363, sec. 4, effective July 15, 1980.

KRS 304.19-200 Definitions for KRS 304.19-200 to 304.19-215

304.19-200. Definitions for KRS 304.19-200 to 304.19-215 As used in KRS 304.19-200 to 304.19-215: (1) "Collateral" means any personal property, including but not limited to a motor vehicle, pledged as security or in which a purchase money security interest is retained, for the satisfaction of a debt; (2) "Credit personal property insurance" means a policy, endorsement, rider, binder, certificate, or other instrument or evidence of insurance that: (a) Is offered in connection with a credit transaction; (b) Covers perils to the personal property purchased through, or used as collateral for, a credit transaction; and (c) Concerns a creditor's interest in the purchased personal property or pledged collateral, in whole or in part; (3) "Credit transaction": (a) Means any transaction in which the: 1. Repayment of money loaned, or a credit commitment, is made; or 2. Payment of goods, services, property, rights, or privileges sold or leased, is to be made at a future date or dates; and (b) Includes a retail installment transaction; (4) "Creditor" means: (a) A lender of money; (b) A vendor or lessor of goods, services, property, rights, or privileges for which payment is arranged through a credit transaction; (c) Any successor to the right, title, or interest of a lender, vendor, or lessor; (d) Any director, officer, or employee of any person referenced under paragraph (a), (b), or (c) of this subsection; (e) Any affiliate, association, or subsidiary of any person referenced under paragraph (a), (b), or (c) of this subsection; or (f) Any person associated in any way with a person referenced under paragraph (a), (b), or (c) of this subsection; (5) "Debtor" means: (a) Any or all borrowers of money; or (b) A purchaser or lessee of goods, services, property, rights, or privileges for which payment is arranged through a credit transaction; and (6) "Finance charge": (a) Means any charge payable, directly or indirectly, as an incident to, or a condition of, the extension of credit, including but not limited to: 1. Interest; 2. Time price differentials; 3. Amounts payable under a discount system of additional charges; 4. Service, transaction, or carrying charges; 5. Loan fees; 6. Points or similar charges; 7. Appraisal fees; or 8. Charges incurred for investigating the credit worthiness of the consumer; and (b) Does not include charges as a result of: 1. Default; 2. Taxes; 3. License fees; 4. Delinquency charges; or 5. Filing fees. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 16, sec. 11, effective July 15, 2026. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 16, sec. 25, provides that this statute shall apply to contracts issued or renewed on or after July 15, 2026.

KRS 304.19-202 Applicability of KRS 304.19-200 to 304.19-215 -- Exemptions

304.19-202. Applicability of KRS 304.19-200 to 304.19-215 -- Exemptions (1) Except as provided in subsection (2) of this section, all credit personal property insurance written in connection with credit transactions for personal, family, or household purposes shall be subject to KRS 304.19 -200 to 304.19-215. (2) The following shall not be subject to KRS 304.19 -200 to 304.19-215: (a) Transactions involving extensions of credit primarily for business or commercial purposes; (b) Insurance that is not classified and filed as credit insurance; (c) Insurance written in connection with a credit transaction that is secured by a real estate mortgage or deed of trust; (d) Title insurance; (e) Non-filing insurance; (f) Insurance purchased by a creditor after: 1. Repossession; or 2. A similar event where the creditor gains possession of the property; (g) Insurance for which no identifiable charge is made to, or collected from, the debtor; (h) Blanket vendor single interest (VSI); or (i) Vehicle financial protection products as defined in KRS 367.702. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 16, sec. 12, effective July 15, 2026. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 16, sec. 25, provides that this statute shall apply to contracts issued or renewed on or after July 15, 2026.

KRS 304.19-204 Definition of gross debt -- Credit personal property insurance -- Restrictions and requirements

304.19-204. Definition of gross debt -- Credit personal property insurance -- Restrictions and requirements (1) As used in this section, "gross debt" means the sum of the remaining payments owed to a creditor by a debtor. (2) For credit personal property insurance sold in conjunction with a closed -end credit transaction, an insurer shall not issue the insurance: (a) In an amount that exceeds the gross debt of the underlying credit transaction; or (b) With a term that exceeds the scheduled term of the underlying credit transaction. (3) Credit personal property insurance shall cover a substantial risk of loss of, or damage to, the collateral pledged or secured in the credit transaction. (4) An insurer shall not: (a) Require the bundling of other credit insurance coverages with the purchase of credit personal property insurance; or (b) Use gross debt in determining credit personal property insurance premiums. (5) A debtor shall have the choice to purchase credit personal property insurance separate from other credit insurance coverage. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 16, sec. 13, effective July 15, 2026. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 16, sec. 25, provides that this statute shall apply to contracts issued or renewed on or after July 15, 2026.

KRS 304.19-206 Disclosure requirements

304.19-206. Disclosure requirements When credit personal property insurance is written pursuant to KRS 304.19-200 to 304.19-215, the creditor shall deliver, or cause to be delivered, a policy, certificate, memorandum, or other disclosure which discloses the coverage and costs to the debtor within thirty (30) days after the date of the loan. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 16, sec. 14, effective July 15, 2026. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 16, sec. 25, provides that this statute shall apply to contracts issued or renewed on or after July 15, 2026.

KRS 304.19-208 Required filings with commissioner

304.19-208. Required filings with commissioner With respect to credit personal property insurance delivered or issued for delivery in this state, all of the following shall be filed with the commissioner: (1) All policies, certificates, plans, and contracts, including endorsements and riders; (2) Group and individual applications for insurance; (3) Enrollment forms; and (4) Schedules of premiums rates. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 16, sec. 15, effective July 15, 2026. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 16, sec. 25, provides that this statute shall apply to contracts issued or renewed on or after July 15, 2026.

KRS 304.19-210 Refund or credit of unearned premiums upon cancellation -- Calculation of unearned premiums

304.19-210. Refund or credit of unearned premiums upon cancellation -- Calculation of unearned premiums (1) Upon cancellation of credit personal property insurance for any reason prior to the scheduled maturity date of the indebtedness, the insurer s hall promptly refund or credit the debtor any unearned premium in accordance with subsection (2) of this section, except an insurer shall not be required to refund or credit an amount of less than five dollars ($5). (2) (a) Except as provided in paragraph (b) of this subsection, the method of calculating unearned premium due under subsection (1) of this section shall be the method in the credit personal property insurance policy, certificate, plan, or contract as filed with the commissioner before or after July 15, 2026. (b) If a method for calculating unearned premium due under subsection (1) of this section is not set forth in the credit personal property insurance policy, certificate, plan, or contract, the method shall be the method set forth in the underlying credit transaction for the refund of finance charges. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 16, sec. 16, effective July 15, 2026. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 16, sec. 25, provides that this statute shall apply to contracts issued or renewed on or after July 15, 2026.

KRS 304.19-212 Claims to be promptly reported -- Methods of payment -- Persons authorized to settle or adjust claims -- Applicability of Subtitle 12 of KRS Chapter 304

304.19-212. Claims to be promptly reported -- Methods of payment -- Persons authorized to settle or adjust claims -- Applicability of Subtitle 12 of KRS Chapter 304 (1) (a) Any claim under a credit personal property insurance policy, certificate, pla n, or contract shall be promptly reported to the insurer or its designated claim representative. (b) An insurer shall maintain adequate claims files for claims reported under paragraph (a) of this subsection. (2) A claim under credit personal property insurance shall be paid by draft drawn upon the insurer, by electronic funds transfer, or by check of the insurer to the order of: (a) Except as provided in paragraph (b) of this subsection, the claimant to whom payment of the claim is due pursuant to the poli cy provisions; or (b) Upon direction of the claimant, to a person other than the claimant. (3) (a) A firm, corporation, or other person, other than the insurer or its designated claim representative, shall not be authorized to settle or adjust claims under credit personal property insurance. (b) 1. Except as provided in subparagraph 2. of this paragraph, a creditor shall not be designated as a claim representative for the insurer in adjusting claims. 2. When the amount of a claim is determined, a group policyholder may, by arrangement with the insurer and subject to audit and review by the insurer, draw drafts or checks or make electronic transfers, in payment of claims due to the group policyholder. (4) All claims for credit personal property insurance shall be subject to Subtitle 12 of this chapter to the extent applicable and not in conflict with KRS 304.19 -200 to 304.19-215. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 16, sec. 17, effec tive July 15, 2026. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 16, sec. 25, provides that this statute shall apply to contracts issued or renewed on or after July 15, 2026.

KRS 304.19-215 Administrative hearings -- Applicability of penalty provisions

304.19-215. Administrative hearings -- Applicability of penalty provisions (1) Unless a remedy is otherwise specifically provided, any person aggrieved by a final decision of the commissioner issued pursuant to KRS 304.19 -200 to 304.19-215 may, within twenty (20) days of service of the notice of the decision, request an administrative hearing which shall be conducted in accordance with KRS Chapter 13B. (2) An insurer that violates any provision of KRS 304.19 -200 to 304.19-215 shall be subject to the penalty provisions of Subtitle 99 of this chapter. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 16, sec. 18, effective July 15, 2026. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 16, sec. 25, provides that this statute shall apply to contracts issued or renewed on or after July 15, 2026.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38729Fetched: 10/20/2026