Agents, Consultants, Solicitors and Adjusters

KRS tit. XXV, ch. 304, subtit. 9

in effect

KRS 304.9-010 Application of subtitle

304.9-010. Application of subtitle This subtitle shall relate to all insurers and kinds of insurance. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 143, sec. 1, effective June 20, 2005. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 1, effective June 18, 1970.

KRS 304.9-020 Definitions for subtitle

304.9-020. Definitions for subtitle As used in this subtitle: (1) "Agent" means a person who sells, solicits, or negotiates insurance or annuity contracts; (2) "Appointment" means a notification filed with the insurance department that an insurer has established an agency relationship with a producer; (3) "Appointment renewal" means continuation of an insurer's existing appointment based on payment of the required fee without submission of an appointment form; (4) "Apprentice adjuster" means an individual who meets the qualification requirements to hold a license as an independent, staff, or public adjuster, except for the experience, education, and training requirements; (5) "Business entity" means a corporation, association, partnership, limited liability company, limited liability partnership, employer group, professional employer organization, or other legal entity; (6) "Catastrophe" means an event that results in a declaration of emergency by the Governor pursuant to KRS 39A.100 and: (a) A large number of deaths or injuries; (b) Extensive damage or destruction of facilities that provide and sustain human needs; (c) An overwhelming demand on state and local response resources and mechanisms; (d) A severe long-term effect on general economic activity; or (e) A severe effect on state, local, and private sector capabilities to begin and sustain response activities; (7) "Crop insurance" means insurance providing protection against damage to crops from unfavorable weather conditions, fire or lightning, flood, hail, insect infestation, disease, or other yield-reducing conditions or perils provided by the private insurance market or that is subsidized by the Federal Crop Insurance Corporation, including multi-peril crop insurance; (8) "Home state" means the District of Columbia and any state or territory of the United States in which a licensee maintains his or her principal place of residence or principal place of business and is licensed by that state; (9) "Independent adjuster" means a person who: (a) Is an independent contractor, an employee of an independent contractor, or for tax purposes is treated as an independent contractor under Subtitle C of the Internal Revenue Code, 26 U.S.C. sec. 3101 et seq.; (b) Is compensated by an insurer or self-insurer; and (c) Investigates, negotiates, or settles property, casualty, or workers' compensation claims for insurers or self-insurers; (10) "Insurance producer": (a) Means an individual or business entity required to be licensed under the laws of Kentucky to sell, solicit, or negotiate insurance or annuity contracts; and (b) Includes an agent, managing general agent, surplus lines broker, reinsurance intermediary broker and manager, rental vehicle agent and rental vehicle agent managing employee, and consultant; (11) "Limited line credit insurance" includes credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed automobile protection insurance, and any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing that credit obligation that the commissioner determines should be designated a form of limited line credit insurance; (12) "Limited line credit insurance agent" means an individual or business entity who sells, solicits, or negotiates one (1) or more forms of limited line credit insurance coverage to individuals through a master, corporate, group, or individual policy; (13) "Limited lines insurance" means: (a) The lines of insurance defined in subsections (7), (11), (23), (27), and (29) of this section; and (b) Any other line of insurance that the commissioner identifies in accordance with KRS 304.9-230(1)(g) or recognizes for the purpose of complying with KRS 304.9-140(5); (14) "Negotiate": (a) Means the act of conferring directly with, or offering advice directly to, a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers; and (b) Unless the context requires otherwise, does not include negotiating a claims settlement; (15) "Pharmacy benefit manager" means an entity that, on behalf of a health benefit plan, state agency, insurer, managed care organization providing services under KRS Chapter 205, or other third-party payor: (a) Contracts directly or indirectly with pharmacies to provide prescription drugs to individuals; (b) Administers a prescription drug benefit; (c) Processes or pays pharmacy claims; (d) Creates or updates prescription drug formularies; (e) Makes or assists in making prior authorization determinations on prescription drugs; (f) Administers rebates on prescription drugs; or (g) Establishes a pharmacy network; (16) "Portable electronics" means electronic devices that are portable and the accessories and services related to the use of the device; (17) "Portable electronics insurance": (a) Means insurance providing coverage for the repair or replacement of portable electronics for any one (1) or more of the following: 1. Loss; 2. Theft; 3. Inoperability due to mechanical failure; 4. Malfunction; 5. Damage; or 6. Other similar causes of loss; and (b) Does not include: 1. A service contract governed by KRS 304.5-070; 2. A policy of insurance covering a seller's or manufacturer's obligations under a warranty; or 3. A homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar policy; (18) "Portable electronics insurance supervising entity" means a business entity that is a licensed insurer or insurance agent that is appointed by an insurer to supervise the administration of a portable electronics insurance program; (19) "Portable electronics retailer" means a licensed business entity that offers and sells portable electronic devices and offers and disseminates portable electronics insurance on behalf and under the direction of a portable electronics insurance supervising entity; (20) "Public adjuster": (a) Means any person who: 1. For compensation or reward paid by or on behalf of an insured, renders advice or assistance to the insured in a first-party claim for loss or damages under any policy, certificate, or contract of insurance covering real or personal property; or 2. Advertises, solicits business, or holds itself out to the public as an adjuster described in subparagraph 1. of this paragraph; and (b) Does not include: 1. An attorney licensed to practice law in Kentucky, when acting in his or her professional capacity as an attorney; or 2. A person employed only for the purpose of obtaining facts surrounding a loss or furnishing technical assistance to a licensed public adjuster, including photographers, estimators, private investigators, engineers, and handwriting experts; (21) "Rental vehicle agent" means a business entity with a rental vehicle agent managing employee that is licensed to sell, solicit, or negotiate insurance offered, sold, or solicited in connection with, and incidental to, the rental of rental vehicles, whether at the rental office or by preselection of coverage in master, corporate, or group agreements that: (a) Are nontransferable; (b) Apply only to the rental vehicle that is the subject of the rental agreement; and (c) Are limited to the following kinds of insurance: 1. Personal accident insurance for renters and other rental vehicle occupants for accidental death or dismemberment and for medical expenses resulting from an accident that occurs with the rental vehicle during the rental period; 2. Liability insurance that provides protection to the renters and other authorized drivers of a rental vehicle for liability arising from the operation or use of the rental vehicle during the rental period; 3. Personal effects insurance that provides coverage to renters and other vehicle occupants for loss of or damage to personal effects in the rental vehicle during the rental period; 4. Roadside assistance insurance; 5. Emergency sickness protection insurance; or 6. Any other coverage designated by the commissioner; (22) "Rental vehicle agent managing employee" means an individual who: (a) Is a salaried full-time employee of a licensed rental vehicle agent business entity that holds a license under KRS 304.9-505; and (b) Is responsible for the supervision of the other employees engaged in the placement of insurance; (23) "Rental vehicle insurance" means insurance underwritten by an insurer authorized to transact business in Kentucky that is sold in connection with, and incidental to, a rental vehicle agreement; (24) "Sell" means to exchange a contract of insurance by any means, for money or other valuable consideration, on behalf of an insurer; (25) "Solicit" means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular insurer; (26) "Staff adjuster" means an individual who is an employee of an insurer who investigates, negotiates, or settles property, casualty, or workers' compensation claims on behalf of his or her employer; (27) "Surety" means insurance or bond that covers obligation to pay the debts of, or answer for the default of another, including faithlessness in a position of public or private trust. Surety also includes surety insurance as defined in KRS 304.5-060; (28) "Terminate" means the cancellation of the relationship between an insurance producer and the insurer or the termination of an insurance producer's authority to transact insurance; (29) "Travel insurance" has the same meaning as in KRS 304.52-010; (30) "Uniform business entity application" means the current version of the uniform business entity application for resident and nonresident business entities; and (31) "Uniform individual application" means the current version of the uniform individual application for resident and nonresident individuals. Effective: April 13, 2026 History: Amended 2026 Ky. Acts ch. 141, sec. 1, effective April 13, 2026. -- Amended 2021 Ky. Acts ch. 36, sec. 10, effective June 29, 2021. -- Amended 2016 Ky. Acts ch. 79, sec. 1, effective July 15, 2016. -- Amended 2013 Ky. Acts ch. 123, sec. 1, effective June 25, 2013. -- Amended 2012 Ky. Acts ch. 92, sec. 1, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 1041, effective July 15, 2010; and ch. 83, sec. 1, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 2, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 4, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 341, sec. 43, effective July 15, 1998. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 2, effective June 18, 1970. Legislative Research Commission Note (4/13/2026). 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. Legislative Research Commission Note (7/15/2014). Under the authority of KRS 7.136(1)(e), a reference to "304.9-230(1)(f)" in subsection (13) of this statute has been changed to "304.9-230(1)(g)" by the Reviser of Statutes following the enactment of 2014 Ky. Acts ch. 59, sec. 1 which inserted a new paragraph in KRS 304.9-230(1), but did not amend this statute to conform. Legislative Research Commission Note (7/15/2010). A reference to the "executive director" of insurance in subsection (16) of this section, as amended by 2010 Ky. Acts ch. 83, 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.

KRS 304.9-030 Available insurance agent licenses

304.9-030. Available insurance agent licenses (1) Unless denied a license according to KRS 304.9-440, applicants who have met the requirements for the license in accordance with this subtitle, shall be issued the applicable license. (2) An insurance agent may receive qualification for a license in one (1) or more of the following applicable lines of authority: (a) Life -- insurance coverage on human lives including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident, benefits for disability incom e, and benefits for paid family leave; (b) Health -- insurance coverage for sickness, bodily injury, or accidental death and may include benefits for disability income and benefits for paid family leave; (c) Property -- insurance coverage for the direct or consequential loss or damage to property of every kind; (d) Casualty -- insurance coverage against legal liability, including that for death, injury, or disability, or damage to real or personal property; (e) Variable life and variable annuity products -- insurance coverage provided under variable life insurance contracts and variable annuities; (f) Limited line insurance as identified in KRS 304.9 -230; (g) Personal lines -- property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes; and (h) Any other line of insurance authorized by Kentucky law and deemed by the commissioner appropriate to be issued as a separate line of authority. (3) A resident applicant for a variable life and variable annuities line of authority shall hold an active life line of authority. Effective: April 5, 2024 History: Amended 2024 Ky. Acts ch. 99, sec. 4, effective April 5, 2024. -- Amended 2010 Ky. Acts ch. 24, sec. 1042, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 3, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 5, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 2, effective July 14, 2000. -- Amended 1986 Ky. Acts ch. 437, sec. 11, effective July 15, 1986. -- Amended 1982 Ky. Acts ch. 123, sec. 1, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 3, effective June 18, 1970.

KRS 304.9-035 Insurer liable for acts of its agents and adjusters

304.9-035. Insurer liable for acts of its agents and adjusters (1) Any insurer shall be liable for the acts of its agents and adjusters when the agents or adjusters are acting: (a) In their capacity as representatives of the insurer; and (b) Within the scope of their authority. (2) Licensed individuals designated by a business entity to exercise the business entity's: (a) Agent license shall be deemed agents of an insurer if the business entity holds an appointment from the insurer; and (b) Adjuster license on behalf of an insurer shall be deemed an adjuster of the insurer. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 8, effective July 15, 2026. -- Amended 2002 Ky. Acts ch. 273, sec. 6, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 3, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 400, sec. 2, effective July 15, 1982.

KRS 304.9-040 "Consultant" defined

304.9-040. "Consultant" defined (1) A "consultant" is a person, who as an independent contractor in relation to a client, for fee or compensation other than from an insurer, in any manner advises or purports to advise, any person actually or prospectively insured, or named or to be named as beneficiary, or having or to have any interest in or insured under, an insurance contract or annuity contract, existing or proposed, relative to coverage, advisability, rights, or interests under such contract, or relative to the retention, exchange, surrender, or exercise of rights thereunder. This subsection shall not apply as to an attorney while acting under a license to practice law in this state. (2) A "property and casualty consultant" is a person licensed as a consultant as to property insurance contracts, casualty insurance contracts, health insurance contracts issued by property or casualty insurers, and surety contracts. (3) A "life and health consultant" is a person licensed as a consultant as to life insurance contracts, annuity contracts, and health insurance contracts. Effective: July 12, 2006 History: Amended 2006 Ky. Acts ch. 254, sec. 1, effective July 12, 2006. -- Amended 2002 Ky. Acts ch. 273, sec. 7, effective July 15, 2002. -- Amended 1982 Ky. Acts ch. 171, sec. 1, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 4, effective June 18, 1970.

KRS 304.9-050 Repealed, 2000

304.9-050. Repealed, 2000 Catchline at repeal: "Solicitor" defined. History: Repealed 2000 Ky. Acts ch. 393, sec. 48, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 5, effective June 18, 1970.

KRS 304.9-051 Definitions for KRS 304.9-052 and 304.9-371 to 304.9-377

304.9-051. Definitions for KRS 304.9-052 and 304.9-371 to 304.9-377 As used in KRS 304.9-052 and 304.9-371 to 304.9-377: (1) (a) An "administrator" is an individual or business entity that collects charges or premiums from, or that adjusts or settles claims on, residents of this state in connection with life insurance, health insurance, annuities, nonprofit hospital, medical-surgical, dental, and health service corporation contracts, health maintenance organization contracts, or other life, health, or annuity benefit plans. (b) The following are not considered to be acting as an administrator: 1. An employer acting on behalf of its employees or the employees of one (1) or more subsidiary or affiliated corporations of the employer; 2. A union on behalf of its members; 3. An insurer, which is acting as the insurer with respect to the contract if the insurer is authorized or permitted to transact business in Kentucky or if the contract is lawfully delivered or issued for delivery by it in and pursuant to the laws of a state in which it was authorized or permitted to do business; 4. A life or health insurance agent licensed in Kentucky whose activities are limited exclusively to the sale of insurance; 5. A creditor on behalf of its debtors with respect to insurance covering a debt between the creditor and its debtors; 6. A trust, its trustees, agents, and employees acting thereunder, established in conformity with 29 U.S.C. sec. 186; 7. A trust exempt from taxation under 26 U.S.C. sec. 501(a), its trustees, and employees acting thereunder, or a custodian, its agents, and employees acting pursuant to a custodian account which meets the requirements of 26 U.S.C. sec. 401(f); 8. A bank, credit union, or other financial institution which is subject to supervision or examination by federal or state banking authorities; 9. A credit card issuing company which advances for and collects premiums or charges from its credit card holders who have authorized it to do so, if the company does not adjust or settle claims; 10. An individual who: a. Adjusts or settles claims in the normal course of practice or employment as an attorney -at-law; and b. Does not collect charges or premiums in connection with coverages issued by insurers; or 11. An individual working for a business entity that is licensed as an administrator to the extent that the individual's job responsibilities are subject to the supervision and control of the business entity. (2) An "insured" is a person covered under an in surance contract, nonprofit hospital, medical-surgical, dental, and health service corporation contract, health maintenance organization contract, or other source of benefits. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 9, effective July 15, 2026. -- Amended 2002 Ky. Acts ch. 273, sec. 8, effective July 15, 2002. -- Created 1986 Ky. Acts ch. 162, sec. 2, effective July 15, 1986.

KRS 304.9-052 Administrator -- License requirements -- Service of process

304.9-052. Administrator -- License requirements -- Service of process (1) No individual or business entity shall in this state be, act as, or hold himself or herself out to be an administrator unless then licensed as an administrator by the commissioner. (2) For the protection of the people of this state, the commissioner shall not issue, continue, or permit to exist any administrator license for any person unless such person demonstrates to the satisfaction of the commissioner that the following standards are met: (a) If an individual, the applicant has attained the age of twenty-one (21) years; (b) The applicant is competent, trustworthy, reliable, and of good reputation; (c) If an individual, the applicant has attained an educational level acceptable to the commissioner; (d) The applicant is financially responsible; (e) The applicant has not had any license issued by the commissioner, or application therefor, terminated for cause; (f) The applicant is a resident of Kentucky or is currently licensed and in good standing in his or her home state; (g) The applicant has paid the fee prescribed in KRS 304.4-010; (h) If a business entity, each individual authorized to act for the business entity under its administrator license shall be designated with the commissioner in accordance with KRS 304.9-133; and (i) Administrator licenses shall be renewed in accordance with KRS 304.9-260. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1043, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 4, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 9, effective July 15, 2002. -- Created 1986 Ky. Acts ch. 162, sec. 3, effective July 15, 1986.

KRS 304.9-053 Licensure of pharmacy benefit managers

304.9-053. Licensure of pharmacy benefit managers (1) (a) In order to conduct business in this state, a pharmacy benefit manager shall first obtain a license from the commissioner. The license shall be in lieu of an administrator's license as required by KRS 304.9-052. (b) A licensed pharmacy benefit manager performing utilization review, as defined in KRS 304.17A-600, shall be registered as a private review agent in accordance with KRS 304.17A-607. (2) (a) A person seeking a pharmacy benefit manager license shall apply to the commissioner in writing on a form provided by the department. (b) The application shall include: 1. The name, address, official position, and professional qualifications of each individual responsible for the conduct of affairs of the pharmacy benefit manager, including all members of the board of directors, board of trustees, executive committee, other governing board or committee, the principal officers in the case of a corporation, the partners or members in the case of a partnership or association, and any other person who exercises control or influence over the affairs of the pharmacy benefit manager; and 2. The name and address of the applicant's agent for service of process in this state. (3) Each application for a license, and subsequent renewal for a license, shall be accompanied by: (a) A nonrefundable fee of one thousand dollars ($1,000); (b) Evidence of financial responsibility in an amount of one million dollars ($1,000,000); and (c) Any methodologies utilized, or to be utilized, by the pharmacy benefit manager in connection with reimbursement, which shall: 1. Comply with KRS 304.17A-595(2)(c); and 2. Be used in determining all appeals under KRS 304.17A-162. (4) (a) All licenses issued under this section shall be renewed annually in accordance with KRS 304.9-260. (b) If the renewal fee required by subsection (3) of this section is paid after the renewal date, a penalty fee of five hundred dollars ($500) shall be paid. Effective: January 1, 2025 History: Amended 2024 Ky. Acts ch. 104, sec. 7, effective January 1, 2025. -- Created 2016 Ky. Acts ch. 79, sec. 2, effective July 15, 2016.

KRS 304.9-054 Pharmacy benefit manager license application review and license issuance -- Disciplinary actions concerning license -- Administrative regulations -- Fees

304.9-054. Pharmacy benefit manager license application review and license issuance -- Disciplinary actions concerning license -- Administrative regulations -- Fees (1) (a) Upon receipt of a completed application, fee, and other documentation and information required under KRS 304.9-053, the commissioner shall make a review of each applicant for a pharmacy benefit manager license. (b) The commissioner shall issue a license if: 1. The applicant is qualified in accordance with this section and K RS 304.9-053; and 2. The commissioner determines, after reasonable investigation, that the applicant, upon licensure, is likely to be in compliance with KRS 304.17A-591 to 304.17A-599. (c) The commissioner may require and obtain additional information or submissions from applicants, as reasonably necessary to comply with this section and verify the information contained in the application. (2) (a) The commissioner may suspend, revoke, or refuse to issue or renew any pharmacy benefit manager license in accor dance with KRS 304.9-440, except that a license shall not be renewed if the licensee is not in compliance with KRS 304.17A-591 to 304.17A-599. (b) The commissioner may make determinations on the length of suspension for a license, not to exceed twenty-four (24) months. (c) In lieu of serving part or all of the days of any suspension period determined under paragraph (b) of this subsection, the commissioner may permit a licensee to pay a sum of one thousand dollars ($1,000) per day not to exceed two hundred fifty thousand dollars ($250,000). (d) If a pharmacy benefit manager license is denied or revoked, the previous applicant or licensee may make a new application not earlier than one (1) full year after the date on which the denial or revocation became final. (3) The commissioner shall promulgate administrative regulations in accordance with KRS Chapter 13A that specify the contents and format of: (a) The application submitted under KRS 304.9-053(2); and (b) Any other form, disclosure, or report required or permitted under this section or KRS 304.9-053 or 304.17A-593. (4) (a) The department may impose a fee upon pharmacy benefit managers, in addition to a license fee, to cover the costs of implementation and enforcement of KRS 205.647 and any provision of this chapter applicable to pharmacy benefit managers, including but not limited to this section and KRS 304.9-053, 304.9-055, and 304.17A-162. (b) The fees permitted under paragraph (a) of this subsection shall include fees to cover the cost of: 1. Salaries and benefits paid to the personnel of the department eng aged in the enforcement; 2. Reasonable technology costs related to the enforcement process. Technology costs shall include the actual cost of software and hardware utilized in the enforcement process and the cost of training personnel in the proper use of the software or hardware; and 3. Reasonable education and training costs incurred by the state to maintain the proficiency and competence of the enforcing personnel. Effective: January 1, 2025 History: Amended 2024 Ky. Acts ch. 104, sec. 8, effective January 1, 2025. -- Created 2016 Ky. Acts ch. 79, sec. 3, effective July 15, 2016.

KRS 304.9-055 Pharmacy benefit managers subject to specified subtitles of KRS Chapter 304 -- Administrative regulations

304.9-055. Pharmacy benefit managers subject to specified subtitles of KRS Chapter 304 -- Administrative regulations (1) Pharmacy benefit managers shall be subject to this subtitle and to the provisions of Subtitles 1, 2, 3, 4, 12, 14, 17, 17 A, 17C, 18, 25, 32, 38, 47, and 99 of KRS Chapter 304 to the extent applicable and not in conflict with the expressed provisions of this subtitle. (2) The commissioner shall promulgate any administrative regulations in accordance with KRS Chapter 13A that are necessary to implement, enforce, or aid in the effectuation of any provision of this chapter applicable to pharmacy benefit managers, including but not limited to administrative regulations that establish: (a) Prohibited practices, including market conduct practices, of pharmacy benefit managers; (b) Data reporting requirements; and (c) Specifications for the sharing of information with pharmacy affiliates. Effective: January 1, 2025 History: Amended 2024 Ky. Acts ch. 104, sec. 9, effective January 1, 2 025. -- Created 2016 Ky. Acts ch. 79, sec. 4, effective July 15, 2016.

KRS 304.9-060 Repealed, 2000

304.9-060. Repealed, 2000 Catchline at repeal: "Service representative" defined -- General requirements. History: Repealed 2000 Ky. Acts ch. 393, sec. 48, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 6.

KRS 304.9-070 Repealed, 2010

304.9-070. Repealed, 2010 Catchline at repeal: "Adjuster" defined. History: Repealed 2010 Ky. Acts ch. 83, sec. 21, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 5, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 10, effective July 15, 2002. -- Amended 1984 Ky. Acts ch. 262, sec. 1, effective April 1, 1985. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 7, effective June 18, 1970.

KRS 304.9-080 Licensure requirements -- Forms

304.9-080. Licensure requirements -- Forms (1) Except as provided in KRS 304.52-030, an individual or business entity shall not sell, solicit, or negotiate insurance in this state unless duly licensed as the appropriate insurance producer for that line of authority in accordance with this subtitle or Subtitle 10 of this chapter. (2) Except as provided in KRS 304.9-430, no individual or business entity shall in this state be, act as, or hold himself, herself, or itself out as an adjuster unless then licensed as an adjuster. (3) No individual or business entity shall in this state be, act as, or hold himself, herself, or itself out as a consultant unless then licensed as a consultant. No consultant shall act as a consultant with respect to any kind of insurance unless duly licensed as a consultant for that line of authority. (4) Except as provided in KRS 304.9-410 and 304.9-270(4), no agent shall place, and no insurer shall accept, any insurance with any insurer as to which the agent does not then hold a license and appointment as agent under this subtitle. (5) A rental vehicle agent or rental vehicle managing employee shall not place, and an insurer shall not accept, any insurance with any insurer as to which the licensee does not then hold a license and appointment under this subtitle. (6) A travel retailer, its employee, or its representative shall not offer and disseminate travel insurance, on behalf or under the direction of, and an insurer shall not accept any travel insurance from, a limited lines travel insurance producer except in accordance with KRS 304.52-030. (7) No person shall act as a travel retailer that offers and disseminates travel insurance unless that person is registered in accordance with KRS 304.52-030(3). (8) The commissioner shall prescribe and furnish all forms required under this subtitle as to licenses and appointments. Effective: June 29, 2021 History: Amended 2021 Ky. Acts ch. 36, sec. 11, effective June 29, 2021. -- Amended 2019 Ky. Acts ch. 8, sec. 1, effective June 27, 2019. -- Amended 2012 Ky. Acts ch. 92, sec. 3, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 1044, effective July 15, 2010. -- Amended 2006 Ky. Acts ch. 254, sec. 2, effective July 12, 2006. -- Amended 2005 Ky. Acts ch. 143, sec. 21, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 11, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 57, sec. 2, effective July 14, 2000; and ch. 393, sec. 4, effective July 14, 2000. -- Amended 1986 Ky. Acts ch. 307, sec. 3, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 262, sec. 2, effective April 1, 1985. -- Amended 1982 Ky. Acts ch. 171, sec. 2, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 8, effective June 18, 1970.

KRS 304.9-085 "Managing general agent" defined -- License -- Duties

304.9-085. "Managing general agent" defined -- License -- Duties (1) A "managing general agent" is an individual or business entity appointed by an insurer to solicit applications from agents for insurance contracts or to negotiate insurance contracts on behalf of an insurer and, if authorized to do so by an insurer, to effectuate and countersign insurance contracts. (2) (a) An individual or business entity in this state shall not be, act as, or hold himself, herself, or itself out as a managing gener al agent unless then licensed as a managing general agent. In order to qualify for a managing general agent license, an individual shall: 1. Hold an agent license with property and casualty lines of authority and be appointed by each authorized insurer the licensee holds the contract to represent; 2. If a nonresident, hold a nonresident agent license with property and casualty lines of authority and be appointed by each authorized insurer the licensee holds a contract to represent in Kentucky; and 3. Hold a surplus lines broker license if any unauthorized insurers are represented or used. (b) In order for a business entity to qualify for a managing general agent license, all individuals acting on behalf of the business entity under its license shall be: 1. Licensed agents with property and casualty lines of authority; and 2. Designated with the commissioner as to the license in accordance with all provisions of KRS 304.9-133. (3) As used in this chapter, "agent" includes managing general agent unless the context requires otherwise. (4) (a) A managing general agent is a representative of the insurers which the managing general agent holds a contract to represent. (b) Each insurer is liable for the acts of the managing general agent in representing that insurer. (5) The commissioner shall renew managing general agent licenses in accordance with KRS 304.9-260. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 10, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1045, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 12, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 5, effective July 14, 2000. -- Created 1986 Ky. Acts ch. 307, sec. 2, effective July 15, 1986.

KRS 304.9-090 Exceptions to licensure requirements

304.9-090. Exceptions to licensure requirements (1) Nothing in this subtitle shall be construed to require an insurer to obtain a license as an insurance producer. As used in this section, the term "insurer" does not include an insurer's officers, directors, employees, subsidiaries, or affiliates. (2) A license as an insurance producer shall not be required of the following: (a) An officer, director, or employee of an insurer or of an insurance producer, provided that the officer, director, or employee does not receive any commission or other valuable consideration on policies written or sold to insure risks residing, located, or to be performed in this state, and: 1. The officer, director, or employee's activities are devoted to functions that are executive, administrative, managerial, clerical, or a combination of these, and are only indirectly related to the sale, solicitation, or negotiation of insurance; or 2. The officer, director, or employee's function relates to underwriting, loss control, inspection, or the processing, adjusting, investigating, or settling of a claim on a contract of insurance; or 3. The officer, director, or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the officer's, director's, or employee's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation, or negotiation of insurance; (b) The individual secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, group or blanket accident and health insurance, or for the purpose of enrolling individuals under plans, issuing certificates under plans, or otherwise assisting in administering plans; or performs administrative services related to a mass marketed property and casualty insurance, where no commission is paid to the individual for the service; (c) An employer or association or its officers, directors, employees, or the trustees of an employee trust plan, to the extent that the employers, officers, employees, directors, or trustees are engaged in the administration or operation of a program of employee benefits for the employer's or association's own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as the employers, associations, officers, directors, employees, or trustees are not in any manner compensated, directly or indirectly, by the insurer issuing the contracts; (d) Employees of insurers or organizations employed by insurers who are engaging in the inspection, rating, or classification of risks, or in the supervision of the training of insurance producers who are not individually engaged in the sale, solicitation, or negotiation of insurance; (e) An individual or business entity whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state, provided that the individual or business entity does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in this state; (f) An individual or business entity who is not a resident of this state who sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one (1) state insured under that contract, provided that the individual or business entity is otherwise licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state; or (g) A salaried full-time employee who counsels or advises his or her employer relative to the insurance interest of the employer or of the subsidiaries or business affiliates of the employer, provided that the employee does not sell, solicit, or negotiate insurance or receive a commission. Effective: July 15, 2002 History: Amended 2002 Ky. Acts ch. 273, sec. 13, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 6, effective July 14, 2000. -- Amended 1986 Ky. Acts ch. 307, sec. 4, effective July 15, 1986. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 9, effective June 18, 1970.

KRS 304.9-100 Purpose of license -- "Controlled business" -- Exceptions

304.9-100. Purpose of license -- "Controlled business" -- Exceptions (1) The purpose of a license issued under this subtitle to an insurance producer is to authorize and enable the licensee actively and in good faith to engage in the business of insurance with respect to the general public, and to facilitate the public supervision of such activities in the public interest; and not for the purpose of enabling the licensee to receive a rebate of premium in the form of "commission" or other compensation upon his or her own interest or upon those of other persons with whom he or she is closely associated in capacities other than as an insurance producer. (2) The commissioner shall not grant, renew, continue, or permit to exist any license of an insurance producer as to any applicant therefor or licensee thereunder if he or she finds that the license has been or is being or will probably be used by the applicant or licensee principally for the purpose of writing "controlled business," that is: (a) Insurance on his or her own interest or those of his or her family or of his or her employer; or (b) Insurance or annuity contracts covering himself, herself, or members of his or her family, or the officers, directors, stockholders, partners, employees, or debtors of a partnership, association, or corporation of which he or she, or a member of his or her family, is an officer, director, stockholder, partner, associate, or employee. (3) Such a license shall be deemed to have been, or intended to be, used principally for the purpose of writing controlled business if the commissioner finds that during any twelve (12) months' period the aggregate premiums accruing or to accrue from controlled business have exceeded or probably will exceed the aggregate premiums accruing or to accrue on other business written or probably to be written by the applicant or licensee during the same period. (4) This section shall not apply as to: (a) Insurance of the interest of a motor vehicle sales or financing agent in a motor vehicle sold or financed by it; (b) Insurance of the interest of real property mortgagee in the mortgaged property, except title insurance; (c) Limited line credit insurance; and (d) Rental vehicle insurance. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1046, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 14, effective July 15, 2002. -- Amended 1988 Ky. Acts ch. 64, sec. 3, effective July 15, 1988. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 10, effective June 18, 1970.

KRS 304.9-105 General qualifications for agent license

304.9-105. General qualifications for agent license (1) An individual applying for an agent license shall make application to the commissioner on the uniform individual application or other application prescribed by the commissioner. Before approving the application, the commissioner shall find that the applicant: (a) Is at least eighteen (18) years of age; (b) Has fulfilled the residence requirements as set forth in KRS 304.9-120 or is a nonresident who is not eligible to be issued a license in accordance with KRS 304.9-140; (c) Has not committed any act that is a ground for denial, suspension, or revocation set forth in KRS 304.9-440; (d) Is trustworthy, reliable, and of good reputation, evidence of which shall be determined through an investigation by the commissioner; (e) 1. Is competent to exercise the license and has: a. Except for variable life and variable annuities line of authority and limited lines of authority identified in KRS 304.9 -230: i. Completed a prelicensing course of study consisting of forty (40) hours for life and health, forty (40) hours for property and casualty, or twenty (20) hours for each line of authority, as applicable, for which the individual has applied; and ii. Successfully passed the examinations required by the commissioner for the lines of authority for which the individual has applied; and b. Paid the fees set forth in KRS 304.4-010. 2. The commissioner shall promulgate administrative regulations in accordance with KRS Chapter 13A to implement this paragraph; and (f) Is financially responsible to exercise the license and has maintained in effect while so licensed: 1. The certificate of an insurer, which states that the insurer has and will keep in effect on behalf of the person a policy of insurance covering the legal liability of the licensed person as the result of erroneous acts or failure to act in his or her capacity as an insurance agent, and enuring to the benefit of any aggrieved party as the result of any single occurrence in the sum of not less than twenty thousand dollars ($20,000) and one hundred thousand dollars ($100,000) in the aggregate for all occurrences within one (1) year; 2. A cash surety bond executed by an insurer, in the sum of twenty thousand dollars ($20,000), which shall be subject to lawful levy of execution by any party to whom the licensee has been found to be legally liable as the result of erroneous acts or failure to act in his or her capacity as an agent; or 3. An agreement by an insurer or group of affiliated insurers for which he or she is or is to become an exclusive agent whereby the insurer or group of affiliated insurers agrees to assume responsibility, to the benefit of any aggrieved party, for legal liability of the licensed person as the result of erroneous acts or failure to act in his or her capacity as an insurance agent on behalf of the insurer or group of affiliated insurers in the sum of twenty thousand dollars ($20,000) for any single occurrence and that the agreement shall not be terminated until the insurer appointment is terminated. (2) The commissioner may: (a) Require additional information or submissions from applicants; and (b) Obtain any documents or information reasonably necessary to verify the information contained in an application. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 11, effective July 15, 2026. -- Amended 2019 Ky. Acts ch. 166, sec. 1, effective June 27, 2019. -- Amended 2012 Ky. Acts ch. 74, sec. 2, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 1047, effective July 15, 2010; and ch. 83, sec. 2, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 6, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 15, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 7, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 483, sec. 9, effective July 15, 1998. -- Amended 1986 Ky. Acts ch. 437, sec. 12, effective July 15, 1986. -- Created 1978 Ky. Acts ch. 161, sec. 1, effective June 17, 1978.

KRS 304.9-107 Persons exempt from provisions of KRS 304.9-105(1)(e)1. -- Administrative regulations

304.9-107. Persons exempt from provisions of KRS 304.9-105(1)(e)1. -- Administrative regulations (1) The following persons shall be exempt from the prelicensing course of study requirements for specific lines of authority of KRS 304.9 -105(1)(e)1.: (a) Persons holding a Chartered Life Underwriter (CLU) designation for a life line of authority; (b) Persons holding a Chartered Property and Casualty Underwriter (CPCU) designation for property, personal lines, and casualty lines of authority; (c) Persons holding a Certified Insurance Counselor (CIC) designation for life, health, property, personal lines, and casualty lines of authority; (d) Persons holding a designation as a Certified Employee Benefit Specialist (CEBS), Chartered Financial Consultant (ChFC), Certified Financial Planner (CFP), Fellow of the Life Management Institute (FLMI), or Life Underwriter Training Council Fellow (LUTCF) for a life line of authority; (e) Persons holding a designation as a Registered Health Underwriter (RHU), Certified Employee Benefit Specialist (CEBS), Registered Employee Benefit Consultant (REBC), or Health Insurance Advisor (HIA) for a health line of authority; (f) Persons holding a designation as an Accredited Advisor in Insurance (AAI) or Associate in Risk Management (ARM) for property, personal lines, and casualty lines of authority; and (g) Persons holding an insurance degree from an accredited college or university for all lines of authority. (2) The commissioner may promulgate administrative regulations to specify addi tional designations and degrees for exemption from a prelicensing course of study for specified lines of authority to comply with NAIC uniformity standards. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1048, effective July 15, 2010. -- Amended 2006 Ky. Acts ch. 254, sec. 4, effective July 12, 2006. -- Amended 2005 Ky. Acts ch. 143, sec. 7, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 393, sec. 8, effective July 14, 2000. -- Created 1980 Ky. Acts ch. 189, sec. 1, effective July 15, 1980.

KRS 304.9-110 Repealed, 1978

304.9-110. Repealed, 1978 Catchline at repeal: General qualifications for agent, solicitor, licenses. History: Repealed 1978 Ky. Acts ch. 161, sec. 7, effective June 17, 1978. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 11, effective June 18, 1970.

KRS 304.9-120 Licensure of residents as agents -- Exception to residency requirement

304.9-120. Licensure of residents as agents -- Exception to residency requirement (1) Each applicant for license as a resident licensee shall be qualified to designate and shall designate Kentucky as the applicant's home state at the date of application for the license and shall maintain that eligibility throughout the duration of the license. (2) Except as provided in subsection (3) of this section, in determining the good faith of an applicant's claim that Kentucky is the applicant's principal place of residence, the commissioner may give due consideration to the following: (a) The amount of time actually spent by the applicant within this state during the claimed residence period; (b) The circumstances of the applicant's residence, that is, whether in a single or multiple family-type dwelling, or leased apartment, or permanent residential type; or in hotel, resort, motel, mobile home, or other temporary or transient type of dwelling or accommodation; (c) The circumstances of the applicant, his or her past history and activities, and the probability that he or she will continue as a resident of this state indefinitely into the future if the license were to be issued; and (d) All other pertinent factors. (3) (a) An applicant for a license under KRS 304.9-230(1)(b) shall be qualified to designate Kentucky as the applicant's home state for the purpose of obtaining that license if: 1. The applicant has a home state that does not issue a license to sell, solicit, and negotiate travel insurance; and 2. The applicant has otherwise met the requirements for the license in accordance with this subtitle. (b) For purposes of this subsection: 1. The commissioner shall offer the applicant an opportunity to complete any prelicensing courses of instruction and examination required under KRS 304.9-230(2) online; and 2. The applicant shall not hold resident licenses for two (2) or more states. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 166, sec. 2, effective June 27, 2019. -- Amended 2010 Ky. Acts ch. 24, sec. 1049, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 393, sec. 9, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 103, sec. 2, effective July 15, 1998. -- Amended 1982 Ky. Acts ch. 319, sec. 3, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 12, effective June 18, 1970.

KRS 304.9-130 Licensing of business entities as agents

304.9-130. Licensing of business entities as agents (1) A business entity acting as an agent is required to obtain an agent license. Application shall be made using the uniform business entity application or other application prescribed by the commissioner. Before approving the application of a business entity as a resident or as a nonresident which is not eligible to be issued a license in accordance with KRS 304.9-140, the commissioner shall find that: (a) The business entity has paid the fees set forth in KRS 304.4-010; (b) Each officer, director, and member of the business entity who is acting as an agent has obtained an agent's license; (c) The business entity has disclosed to the Department of Insurance the identity of all officers and directors and whether or not they are licensed as agents; and (d) The business entity has designated a licensed agent responsible for the business entity's compliance with the insurance laws and regulations of this state. (2) Within thirty (30) days of the change, the licensee shall notify the commissioner of all changes among its members, directors, officers, and other individuals designated in or registered as to the license. (3) Each agent authorized to act for the business entity shall be designated with the commissioner as to the license in accordance with KRS 304.9-133. (4) The commissioner may require additional information or submissions from applicants and may obtain any documents or information reasonably necessary to verify the information contained in an application. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1050, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 16, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 10, effective July 14, 2000. -- Amended 1982 Ky. Acts ch. 123, sec. 2, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 13, effective June 18, 1970.

KRS 304.9-133 Individuals designated to act under business entity license -- Filing of designation notice -- Exercise of license -- Responsibility of insurer for acts of designated individuals

304.9-133. Individuals designated to act under business entity license -- Filing of designation notice -- Exercise of license -- Responsibility of insurer for acts of designated individuals (1) As used in this section, "licensed business entity" means a business entity issued a: (a) License under this subtitle; or (b) Life settlement broker, life settlement provider, or surplus lines broker license. (2) (a) Except as provided in this subsection: 1. A licensed business entity shall designate individuals to act under the business entity license; and 2. Each individual designated to act under the license of a business entity referenced in subparagraph 1. of this paragraph shall hold the same kind of license as the business entity. (b) A portable electronics retailer issued a license shall designate a business entity to act under the license. (c) A managing general agent issued a license shall designate individuals licensed as agents with property and casualty lines of authority to act under the license. (d) A pharmacy benefit manager issued a license shall designate individuals licensed as administrators to act under the license. (3) (a) The first individual designated by a licensed business entity to act under the business entity license shall have one (1) or more of the same lines of authority as the business entity. (b) An individual designated to act under the business entity license who is in addition to the first designee referenced in paragraph (a) of this subsection shall have at least one (1) appointment with an insurer. (4) A licensed business entity shall file with the commissioner: (a) Notice of the designation of an individual within thirty (30) days of the designation; and (b) Notice of termination of designation of an individual within thirty (30) days of the termination of designation. (5) (a) Except as provided in subsection (2)(b) of this section, a licensed business entity shall exercise its license only through one (1) or more designated individual licensees. (b) 1. The business entity shall have for each of its licenses and active lines of authority at least one (1) licensed individual designated with the commissioner at all times. 2. If the business entity fails to have at least one (1) licensed individual designated with the commissioner for a line of authority, that line of authority shall become inactive. 3. If the business entity fails to have at least one (1) licensed individual designated with the commissioner, the business entity license shall terminate. (6) An insurer that has appointed the business entity licensee shall be responsible for the acts of each designated individual performed under the business entity's license as if the insurer had appointed the individual licensee. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 12, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1051, effective July 15, 2010; and ch. 83, sec. 3, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 32, sec. 13, effective July 15, 2008. -- Amended 2005 Ky. Acts ch. 143, sec. 8, effective June 20, 2005. -- Created 2002 Ky. Acts ch. 273, sec. 24, effective July 15, 2002. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 83. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 83, which was last enacted by the General Assembly, prevails under KRS 446.250.

KRS 304.9-135 Requirements for financial institutions engaging in insurance agency activities -- Administrative regulations -- Activities of officers or employees of financial institution

304.9-135. Requirements for financial institutions engaging in insurance agency activities -- Administrative regulations -- Activities of officers or employees of financial institution (1) As used in this section: (a) "Financial institution" means: 1. A bank or bank holding company, as defined in the Bank Holding Company Act of 1956, codified at 12 U.S.C. sec. 1841, as amended; 2. A savings bank, savings and loan association, trust company, or any depository institution as defined in the Federal Depos it Insurance Act, codified at 12 U.S.C. sec. 1813(c)(1), as amended; and 3. Any other individual, corporation, partnership, or association authorized to take deposits and make loans in this Commonwealth, and any affiliate or subsidiary of any of the above; (b) "Insurance agency activities" means any activity relating to insurance, other than title insurance, for which a license as agent, reinsurance intermediary broker or manager, surplus lines broker, or consultant is required under this chapter; and (c) "Insurance information" means any information concerning premiums, terms, and conditions of insurance coverage, including: 1. Expiration dates and rates; and 2. Claims maintained in the records of the financial institution or affiliate. (2) A financial institution authorized by law to engage in insurance agency activities in this state shall, in addition to any other applicable requirements, comply with the following requirements: (a) The financial institution or officer, agent, representative, or employee thereof shall qualify for licensure under all applicable provisions of this chapter and abide by all applicable provisions of this chapter and applicable adminis trative regulations; (b) A financial institution shall provide a written statement to a consumer regarding the consumer's free choice of agent and insurer according to KRS 304.12-150, when the consumer's application for a loan or other extension of credit from the financial institution is pending and when insurance is offered to the consumer, sold to the consumer, or required in connection with the loan or extension of credit by the financial institution or affiliate; (c) A financial institution shall not release a consumer's insurance information to any person or entity for the solicitation or selling of insurance, other than an officer, director, employee, agent, or affiliate of a financial institution, without prior disclosure to the consumer and the oppo rtunity for the consumer to prevent the disclosure; (d) A financial institution shall not release or use health information obtained from the insurance records of a consumer for any purpose, other than activities of a licensed agent, administrator, reinsur ance intermediary broker or manager, surplus lines broker, or consultant, without the written consent of the consumer; (e) A financial institution licensed by the department to engage in insurance agency activities shall: 1. Not violate the anti-tying provisions of the Bank Holding Company Act Amendments of 1970, codified at 12 U.S.C. sec. 1971 et seq., in effect as of December 31, 1997; and 2. Notify the department in writing within ten (10) days of any final judgment or any final administrative action, by a federal agency authorized to enforce the anti-tying provision, that finds that the financial institution or any of its employees committed a violation of the Bank Holding Company Act. Any such final and unappealable judgment or final and unappealable administrative action shall be deemed a violation of this chapter; (f) Prior to the sale of any policy of insurance to a consumer, a financial institution shall, when practicable, provide to the consumer a written statement that: 1. The insurance offered by the financial institution is not a deposit; 2. The insurance offered by the financial institution is not insured by the Federal Deposit Insurance Corporation or other government agency that insures deposits; 3. The insurance offered by the financial instit ution is not guaranteed by the financial institution or any affiliate; 4. The insurance may involve investment risk, including potential loss of principal; and (g) The commissioner shall promulgate administrative regulations in accordance with KRS Chapter 13A that specify the disclosure forms required by paragraphs (b), (c), and (f) of this subsection. (3) An officer or employee of a financial institution shall not directly or indirectly delay or impede the completion of a loan transaction or any other tran saction with a financial institution for the purpose of influencing a consumer's selection or purchase of any insurance. (4) A financial institution shall not use any advertisement or promotional material causing a reasonable person to mistakenly believe t hat: (a) The federal government or any state guarantees the insurance sales activities of financial institutions or guarantees the credit of the financial institution; or (b) Any state or federal government guarantees any return on insurance products or is a source of payment on any insurance product sold by the financial institution. (5) A financial institution shall use separate documentation for all credit and insurance transactions when a consumer obtains insurance and credit, other than credit insurance, from a financial institution or any individual or business entity soliciting or selling insurance on the premises of a financial institution. (6) A financial institution shall not include an expense of insurance premiums in a credit transaction when a consumer obtains insurance and credit, other than credit insurance, from a financial institution or any individual or business entity soliciting or selling insurance on the premises of a financial institution, without the written consent of the consumer. (7) (a) A financial institution shall maintain separate and distinct books and records relating to insurance transactions conducted through the financial institution, including files relating to consumer complaints. (b) The books, records, and files shall be made available to the commissioner for inspection in accordance with KRS 304.2 -220. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 13, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1052, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 17, effective July 15, 2002. -- Created 1998 Ky. Acts ch. 312, sec. 2, effective July 15, 1998.

KRS 304.9-136 Repealed, 2002

304.9-136. Repealed, 2002 Catchline at repeal: Compensation for referral of consumers by employees of a general agency -- Conditions. History: Repealed 2002 Ky. Acts ch. 273, sec. 55, effective July 15, 2002. -- Created 1998 Ky. Acts ch. 312, sec. 3, effective July 15, 1998.

KRS 304.9-140 Licensure of nonresidents as agents

304.9-140. Licensure of nonresidents as agents (1) A nonresident individual or business entity shall receive the applicable insurance producer license if: (a) The applicant is currently licensed as a resident and in good standing in his or her home state; (b) The applicant has submitted the proper request for license and has paid the fees required by KRS 304.4-010 and administrative regulations; (c) The applicant has submitted or transmitted to the commissioner the application for a license that the applicant submitted to his or her home state or a completed uniform individual application or uniform business entity application; (d) The applicant's home state awards nonresident licenses to residents of this state on the same basis; and (e) The applicant is not denied a license in accordance with KRS 304.9-440. (2) The commissioner may verify the applicant's license status through the database maintained by the National Association of Insurance Commissioners, its affiliates, or subsidiaries. (3) A nonresident licensee who changes his or her home state to a state other than Kentucky shall file a change of address and provide certification from the new home state within thirty (30) days of the change of home state. No fee or license application is required. (4) Notwithstanding any other provisions of this chapter, an individual licensed as a surplus lines broker in his or her home state shall receive a nonresident surplus lines broker license by meeting the requirements of subsection (1) of this section. Except as provided in subsection (1) of this section, nothing in this section otherwise amends or supersedes any provision of Subtitle 10 of this chapter. (5) Notwithstanding any other provision of this subtitle, an individual licensed as a limited lines agent in his or her home state shall receive a nonresident limited lines agent license in accordance with subsection (1) of this section, granting the same scope of authority as granted under the license issued by the agent's home state. (6) Notwithstanding any other provision of this subtitle, an individual licensed as an agent with a limited line of authority in his or her home state shall: (a) Receive a nonresident major line of authority in accordance with subsection (1) of this section if the limited line of authority in the individual's home state is not offered in this state; and (b) Only have authority to place business under the nonresident license with a major line of authority in this state to the extent permitted, and as limited, for an individual agent in the individual's home state with the limited line of authority. (7) The commissioner shall waive any requirements for a nonresident insurance producer license applicant with a valid license from his or her home state, except the requirements imposed by subsection (1) of this section, if the applicant's home state awards nonresident insurance producer licenses to residents of Kentucky on the same basis. (8) (a) As a condition to or in connection with the continuation of an insurance producer license issued under this section, the licensee must maintain the applicable license in his or her home state. (b) The insurance producer license issued under this section shall terminate if and when the licensee's applicable home state license terminates for any reason. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 14, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1053, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 18, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 11, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 103, sec. 1, effective July 15, 1998. -- Amended 1984 Ky. Acts ch. 322, sec. 5, effective July 13, 1984. -- Amended 1980 Ky. Acts ch. 188, sec. 245, effective July 15, 1980. -- Amended 1974 Ky. Acts ch. 208, sec. 1, effective June 21, 1974. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 14, effective June 18, 1970.

KRS 304.9-142 Repealed, 2002

304.9-142. Repealed, 2002 Catchline at repeal: Fees charged to out-of-state individuals or business entities. History: Repealed 2002 Ky. Acts ch. 273, sec. 55, effective July 15, 2002. -- Created 2000 Ky. Acts ch. 393, sec. 37, effective July 14, 2000.

KRS 304.9-150 Application for license issued under this subtitle, surplus lines broker license, life settlement broker license, or life settlement provider license

304.9-150. Application for license issued under this subtitle, surplus lines broker license, life settlement broker license, or life settlement provider license (1) Application for a license issued under this subtitle, surplus lines broker license, life settlement broker license, or life settlement provider license shall be made by the applicant. Applications under this subsection shall be certified by the applicant as true, correct, and complete to the best of the applicant's knowledge and belief under penalty of perjury and under penalty of refusal, suspension, or revocation of the license. (2) The form of application shall require full answers to any questions as may be reasonably necessary to determine the applicant's identity, residence, personal history, business record, financial responsibility, experience in insurance, purpose for which the license is to be used, and other facts as required by the commissioner to determine whether the applicant meets the applicable qualifications for the license applied for. (3) The application shall state the kinds of insurance and any applicable lines of authority proposed to be transacted. (4) The application of a resident individual shall show whether the applicant is a citizen of the United States. If the applicant is not a citizen of the United States, the applicant shall attach to the application a copy of his or her legal work authorization document. (5) The application shall also show whether the applicant was ever convicted of or is currently charged with committing a crime; whether the applicant was ever involved in an administrative proceeding regarding any professional or occupational license; whether the applicant has a history of not being financially responsible; whether the applicant has any delinquent tax obligation that is not the subject of a repayment agreement; whether the applicant is currently charged with or has ever been found liable of fraud, misappropriation, conversion of funds, misrepresentation, or breach of fiduciary duty; whether the applicant has child support obligations in arrearage or is subject to a child support-related subpoena or warrant; and whether the applicant has ever had a business relationship with an insurer terminated for any alleged misconduct, and the facts thereof. (6) The commissioner may require additional information or submissions from applicants and may obtain any documents or information reasonably necessary to verify the information contained in an application. (7) All applications shall be accompanied by: (a) The applicable license fee and examination fee, in the respective amounts stated in KRS 304.4-010; and (b) Documentation supporting affirmative answers to the questions posed in the background section. (8) An individual designating Kentucky as his or her home state shall submit to the commissioner the applicant's criminal background report from the Kentucky Administrative Office of the Courts. (9) No applicant for any license shall willfully misrepresent or withhold any fact or information called for in the application form or in connection therewith. (10) If the licensee is a business entity, the licensee shall notify the commissioner of all changes among its members, directors, officers and other individuals designated in or registered as to the license, within thirty (30) days of such change. (11) A business entity applicant or licensee shall not be authorized to transact insurance in Kentucky if that applicant or licensee has or uses a name which is the same as, or deceptively similar to, that of another business entity licensee already so authorized. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1054, effective July 15, 2010; and ch. 83, sec. 4, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 32, sec. 14, effective July 15, 2008. -- Amended 2005 Ky. Acts ch. 58, sec. 3, effective June 20, 2005; and ch. 143, sec. 9, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 19, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 12, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 483, sec. 10, effective July 15, 1998. -- Amended 1974 Ky. Acts ch. 386, sec. 58, effective June 21, 1974. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 15, effective June 18, 1970. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 83, which do not appear to be in conflict and have been codified together.

KRS 304.9-160 Examination for license -- Application for examination

304.9-160. Examination for license -- Application for examination (1) An individual applying for any license under this subtitle requiring an examination shall pass a written examination unless exempt under KRS 304.9-170. Examinations required by this section shall be developed and conducted in accordance with administrative regulations promulgated by the commissioner. (2) The commissioner may make arrangements, including contracting with an outside testing service, for administering examinations and collecting the nonrefundable fee set forth in KRS 304.4-010. (3) Each individual applying for an examination shall remit a nonrefundable fee as prescribed by the commissioner as set forth in KRS 304.4-010. (4) An individual who fails to appear for the examination as scheduled or fails to pass the examination, shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1055, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 393, sec. 13, effective July 14, 2000. -- Amended 1984 Ky. Acts ch. 322, sec. 6, effective July 13, 1984. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 16, effective June 18, 1970.

KRS 304.9-170 Exemptions from prelicensing education or examination

304.9-170. Exemptions from prelicensing education or examination Prelicensing education or examination shall not be required of: (1) (a) An individual licensee who allows his or her license to lapse if the license renewal fee is paid within twelve (12) months from the due date of the license renewal fee, except a penalty in the amount of double the unpaid renewal fee shall be imposed. (b) The department shall issue a license with the same lines of authority as the lapsed license; (2) Any applicant for a license covering any line of authority to which the applicant was licensed under a similar license in Kentucky, other than a temporary license, within the twelve (12) months next preceding the date of application, except the applicant is not eligible for this exemption if the previous license was revoked or suspended by the commissioner for reasons other than failure to meet continuing education requirements as required by KRS 304.9-295; (3) A licensed insurance agent operating as a life settlement broker pursuant to KRS 304.15-700(2)(b); (4) (a) An individual who applies for an insurance producer license in Kentucky who was previously licensed for the same lines of authority in another state. (b) This exemption is only available if: 1. The applicant is currently licensed in the other state; or 2. a. The application is received within ninety (90) days of the cancellation of the applicant's previous license; and b. The prior state issues a certification that, at the time of cancellation: i. The applicant was in good standing in that state; or ii. The state's database records, maintained by the National Association of Insurance Commissioners, its affiliates, or subsidiaries, indicate that the insurance producer is or was licensed in good standing for the line of authority requested; (5) Except as otherwise established by the commissioner in an administrative regulation, an individual who: (a) Was licensed as a resident insurance producer in another state within the last twelve (12) months; (b) Moves to Kentucky; and (c) Makes an application within ninety (90) days of establishing legal residence in Kentucky to become a resident licensee in accordance with KRS 304.9-105 for any line of authority previously held in the prior home state within the last twelve (12) months; (6) An applicant for an insurance producer's license who is currently licensed in Kentucky as a consultant as to the same line of authority, or has been so licensed within twelve (12) months next preceding the date of application for the license, unless the previous license was revoked or suspended or continuation thereof refused by the commissioner for reasons other than failure to maintain financial responsibility as required by KRS 304.9-330; or (7) Any applicant for a license covering the same line of authority as to which that applicant held a valid license issued in accordance with this subtitle or other applicable Kentucky law which was surrendered, in accordance with KRS 304.2- 080 or other applicable law, in order to accept employment with the Department of Insurance, except the applicant shall apply for relicensing within twelve (12) months of the date of termination of his or her employment with the Department of Insurance. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 15, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1056, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 32, sec. 15, effective July 15, 2008. -- Amended 2005 Ky. Acts ch. 58, sec. 4, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 20, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 14, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 483, sec. 11, effective July 15, 1998. -- Amended 1988 Ky. Acts ch. 64, sec. 2, effective July 15, 1988. -- Amended 1984 Ky. Acts ch. 322, sec. 7, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 123, sec. 3, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 378, sec. 1, effective July 15, 1980. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 17, effective June 18, 1970.

KRS 304.9-180 Scope of examination -- Reference material

304.9-180. Scope of examination -- Reference material (1) The examination shall test the knowledge or relevant skills and abilities of the individual concerning the lines of authority for which application is made, the duties and responsibilities of a licensee, and the pertinent insurance laws and administrative regulations of this state. (2) The commissioner shall make available to applicants for license, printed information as to the general scope of, and principal subjects to be covered by, the examination for a particular license, together with information as to published books and other reference sources which may be studied by the applicant to prepare for the examination; but the commissioner shall not furnish lists of examination questions and examination questions shall not be selected from lists known to the commissioner to have been furnished applicants. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1057, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 393, sec. 15, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 18, effective June 18, 1970.

KRS 304.9-190 Conduct of examinations

304.9-190. Conduct of examinations (1) The commissioner shall provide a reasonable opportunity to all applicants to take the examinations required by this subtitle. Examinations shall be held at least monthly at places in this state designated by the commissioner reasonably accessible to applicants, and at least weekly at Frankfort. (2) The commissioner shall give, conduct, and grade all examinations in a fair and impartial manner and without unfair discrimination as between individuals examined. (3) The commissioner may require a reasonable waiting period before reexamination of an applicant who has failed to pass a previous examination covering the same line of authority. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1058, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 393, sec. 16, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 19, effective June 18, 1970.

KRS 304.9-200 Contents of license -- Change of address -- Refundability of fees

304.9-200. Contents of license -- Change of address -- Refundability of fees For licenses issued under this subtitle or to a surplus lines broker, life settlement broker, or life settlement provider: (1) The license shall contain the licensee's name, city and state of principal place of business address, personal identification number, and the date of issuance, the lines of authority, and any other information the commissioner deems necessary; (2) The licensee shall inform the commissioner in writing in a format acceptable to the commissioner of a change of address or change of legal name within thirty (30) days of the change; (3) (a) After completion of application for a license, completion of any prelicensing education required under this chapter, payment of applicable fees, and the taking and passing of any examination required under this chapter, the commissioner shall promptly consider the application. (b) If the commissioner finds that the applicant has fully met the requirements for licensure, the commissioner shall promptly issue the license to the applicant; otherwise, the commissioner shall refuse to issue the license and promptly notify the applicant of the refusal, stating the grounds thereof; (4) All application and examination fees shall be deemed earned when paid and shall not be refundable if a license is refused; and (5) In order to assist in the performance of the commissioner's duties, the commissioner may contract with nongovernmental entities, including the National Association of Insurance Commissioners or its affiliate or subsidiary, to perform ministerial functions, including the collection of fees or data related to licensing. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 16, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1059, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 32, sec. 16, effective July 15, 2008. -- Amended 2002 Ky. Acts ch. 273, sec. 21, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 17, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 20, effective June 18, 1970. Legislative Research Commission Note (7/15/2010). A reference to the "executive director" of insurance in subsection (4) of this section, as amended by 2010 Ky. Acts ch. 24, sec. 1059, 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.

KRS 304.9-210 Specific contents of agent's and consultant's licenses

304.9-210. Specific contents of agent's and consultant's licenses (1) The license of an agent shall not specify the name of any particular insurer by which the licensee is appointed as agent and the licensee may represent as an agent under the one (1) license as many insurers as may appoint the agent in accordance with this subtitle. (2) The license of a consultant shall show whether the license is for a "property and casualty consultant" or a "life and health consultant." Effective: July 15, 2002 History: Amended 2002 Ky. Acts ch. 273, sec. 22, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 18, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 21, effective June 18, 1970.

KRS 304.9-220 Repealed, 2000

304.9-220. Repealed, 2000 Catchline at repeal: Multiple licensing, life agents. History: Repealed 2000 Ky. Acts ch. 393, sec. 48, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 483, sec. 12, effective July 15, 1998. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 22, effective June 18, 1970.

KRS 304.9-230 Limited line licenses -- Prelicensing requirements

304.9-230. Limited line licenses -- Prelicensing requirements (1) The commissioner may issue, in accordance with KRS 304.9 -080, an agent's license with the limited line of authority as follows: (a) Preneed funeral; (b) Travel; (c) Limited line credit; (d) Crop; (e) Rental vehicle; (f) Self-service storage space; or (g) Other limited lines, as specified by the commissioner through the promulgation of administrative regulations. (2) The commissioner shall promulgate administrative regulations to establish the requirements, if any, for prelicensing courses of instruction and examination for each limited line of authority. (3) The commissioner shall not issue an agent license with a limited line of authority for motor vehicle physical damage or for mechanical breakdown insurance. However, an agent license with a limited line o f authority for motor vehicle physical damage or for mechanical breakdown insurance in effect on July 15, 2002, shall continue in effect until surrendered or otherwise terminated in accordance with this subtitle. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 17, effective July 15, 2026. -- Amended 2014 Ky. Acts ch. 59, sec. 1, effective July 15, 2014. -- Amended 2010 Ky. Acts ch. 24, sec. 1060, effective July 15, 2010; and ch. 83, sec. 5, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 10, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 23, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 19, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 483, sec. 13, effective July 15, 1998. -- Amended 1988 Ky. Acts ch. 64, sec. 1, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 437, sec. 13, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 322, sec. 8, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 123, sec. 4, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 405, sec. 1, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 161, sec. 2, effective June 17, 1978. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 23, effective June 18, 1970.

KRS 304.9-240 Insurance vending machines

304.9-240. Insurance vending machines (1) A licensed agent may solicit for and issue personal travel accident insurance policies by means of mechanical vending machines supervised by the agent and placed at airports and similar places of convenience to the traveling public, if the commissioner finds that: (a) The policy provides reasonable coverage and benefits, is suitable for sale and issuance by vending machine, and that use of such a machine in a proposed location would be of material convenience to the public; (b) The type of machine proposed to be used is reasonably suitable for the purpose; (c) Reasonable means are provided for informing prospective purchasers of policy coverages and restrictions; (d) Reasonable means are provided for the refund of money inserted in defective machines and for which insurance so paid for is not received; and (e) The cost of maintaining such a machine at a particular location is reasonable in amount. (2) For each machine to be used, the commissioner shall issue to the agent upon his or her application a special vending machine license. The license shall specify the name and address of the insurer and agent, the name of the policy to be sold, the serial number and operating location of the machine. The license shall be subject to annual continuation, to expiration, suspension or revocation coincidentally with that of the agent. The commissioner shall also revoke the license of any machine as to which he or she finds that the license qualifications no longer exist. The license fee shall be the same as specified in KRS 304.4-010, for an agent, for each license year or part thereof for each respective machine. Proof of the existence of a subsisting license shall be displayed on or about each machine in use, in such manner as the commissioner reasonably requires. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1061, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 54, effective July 15, 2002. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 24, effective June 18, 1970.

KRS 304.9-250 Authority under license -- Assignability

304.9-250. Authority under license -- Assignability (1) Every license under this subtitle shall by virtue of such license have the right to transact business as authorized by the license throughout the Commonwealth of Kentucky. (2) No such license, or registration under a firm or corporation license as provided by KRS 304.9-130 shall be assignable or transferable to another. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 25, effective June 18, 1970.

KRS 304.9-260 Continuation and expiration of license -- Receipt of renewal fees -- Continuing education documentation

304.9-260. Continuation and expiration of license -- Receipt of renewal fees -- Continuing education documentation (1) (a) As used in this subsection, "license" means a: 1. License issued under this subtitle; 2. Surplus lines broker license; 3. Life settlement broker license; or 4. Life settlement provider license. (b) Each license shall continue in force until expired, suspended, revoked, or otherwise terminated. (c) License renewal fees shall be received on or before the applicable due date for the license as stated in KRS 304.4-010. (d) A request for license renewal shall be on a form or in a format prescribed by the commissioner. (e) At least thirty (30) days before the license renewal request and fees are due from each respective licensee, the department shall make available to the licensee a list of his or her licenses to be renewed during that calendar year. (f) In conjunction with license renewal, the following individuals shall show proof of compliance with continuing education requirements established in KRS 304.9-295: 1. Resident: a. Agents; b. Independent adjusters; c. Public adjusters; and d. Life settlement brokers; and 2. Nonresident: a. Independent adjusters; and b. Public adjusters; that designate Kentucky as their home state. (g) 1. An individual licensee whose birth date is in an even -numbered year shall submit the license renewal request, continuing education course completion documentation pursuant to KRS 304.9 -295, and fees to the commissioner by the last day of the licensee's birth month in the next even-numbered year after the date the license is issued, and each subsequent even-numbered year thereafter; 2. An individual licensee whose birth date is in an odd -numbered year shall submit the license renewal request, continuing education course completion documentation pursuant to KRS 304.9 -295, and fees to the commissioner by the last day of the licensee's birth month in the next odd-numbered year after the date the license is issued, and each subsequent odd-numbered year thereafter; 3. A business entity that is issued a license in an even -numbered year shall submit the license renewal request and fees to the commissioner by March 31 of the next even-numbered year, and each subsequent even- numbered year thereafter; and 4. A business entity that is issued a license in an odd-numbered year shall submit the license renewal request and fees to the commissioner by March 31 of the next odd-numbered year, and each subsequent odd- numbered year thereafter. (2) (a) Any license referred to in subsection (1) of this section for which the request for renewal, any required continuing education course completion documentation, if applicable, and fee are not received by the commissioner shall be deemed to have expired at midnight on the last day of the birth month for individuals and on March 31 for business entities. (b) Any renewal request and fees received by the commissioner within sixty (60) days after the date of expiration may be accepted with no interruption in license if accompanied by a penalty as provided in KRS 304.99-100. (c) 1. Completion of the required continuing education course, if applicable, shall be on or before the expiration date, which is deemed as the last day of the birth month of the licensee during the applicable odd or even year on a biennial basis. 2. Proof of compliance shall be received by the commissioner within sixty (60) days after the expiration date. (3) A licensee who is unable to comply with the license renewal procedures of this section due to military service, long-term medical disability, or some other extenuating circumstance may make a written request for a waiver of those procedures. The licensee may also make a written request for a waiver of any examination requirement, fine, or other sanction imposed for failure to comply with these renewal procedures. (4) As a condition to or in connection with the continuation of any insurance producer license, the commissioner may require the licensee to file with him or her information relative to use made of the license during the next preceding calendar year and especially as to whether the license has been used principally for the writing of controlled business, as defined in KRS 304.9-100. (5) As a condition to or in connection with the continuation of any license referred to in subsection (1) of this section, the commissioner shall require continuous demonstration of continuing education course completion to sustain the license, and any license shall terminate if and when the demonstration becomes impaired. (6) This section does not apply to temporary licenses issued under KRS 304.9-300, and licensees not licensed for one (1) full year prior to the end of the applicable biennial renewal year. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 18, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1062, effective July 15, 2010; and ch. 83, sec. 6, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 32, sec. 17, effective July 15, 2008. -- Amended 2005 Ky. Acts ch. 143, sec. 11, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 25, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 20, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 485, sec. 1, effective July 15, 1998. -- Amended 1982 Ky. Acts ch. 320, sec. 13, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 161, sec. 4, effective June 17, 1978. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 26, effective June 18, 1970. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 83. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 83, which was last enacted by the General Assembly, prevails under KRS 446.250. Legislative Research Commission Note (7/15/2010). A reference to the "office" of insurance in subsection (1)(a) of this section, as amended by 2010 Ky. Acts ch. 24, sec. 1062, has been changed in codification to the "department" 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.

KRS 304.9-270 Appointment of agents -- Criminal background check -- Continuation -- Permitted and prohibited actions by agents and insurers

304.9-270. Appointment of agents -- Criminal background check -- Continuation -- Permitted and prohibited actions by agents and insurers (1) (a) Each insurer appointing an agent in this state shall obtain approval of the appointment from the commissioner by: 1. Filing with the commissioner the notice of appointment, specifying the lines of authority to be transacted by the agent for the insurer; and 2. Submitting the appointment fee, as specified in KRS 304.4 -010. (b) Each insurer shall notify the commissioner of additional lines of authority for which an agent is deemed authorized to transact business, after the initial appointment, in a format prescribed by the commissioner. (2) Prior to appointment of an agent, the insurer shall satisfy itself thro ugh investigation that the named applicant has not been convicted of any felony offense involving dishonesty or a breach of trust and has not been convicted of a fraudulent insurance act under Subtitle 47 of this chapter, unless the named applicant has received written consent from the commissioner that specifically refers to KRS 304.47-025(3). (3) No agent shall claim to be an agent or representative of, or in any way imply a contractual relationship with, a particular insurer, or place applications for insurance with an insurer unless: (a) The agent becomes an appointed agent of the insurer; and (b) The agent's appointment has been approved by the commissioner. (4) (a) An agent may act as a representative of and place insurance with an insurer without first obtaining approval of the appointment by the commissioner for a period of fifteen (15) days from the date the first insurance application is executed by the agent. (b) If the agent does not obtain confirmation that the agent's appointment has been approved by the commissioner within fifteen (15) days from the date the first insurance application is executed, the agent shall immediately discontinue acting as an agent on behalf of the insurer until confirmation is received. (5) (a) The insurer shall, no later than fifteen (15) days from the date the agent contract is executed or the first insurance application is submitted by an agent, whichever is earlier, file with the commissioner a notice of appointment on a form or in a format prescribed by the commissioner. (b) If there is no executed agent contract, the insurer shall also mail to the agent, within the same fifteen (15) day period specified in paragraph (a) of this subsection, a copy of the notice of appointment form filed with the commissioner. (6) (a) Within fifteen (15) days of receipt of the notice of appointment of an agent, the commissioner shall determine and notify the insurer whether the agent is eligible for appointment. (b) If the agent's license is in good standing and no other grounds exist to deny the appointment, the commissioner shall approve the appointment. (7) Subject to renewal by the insurer as provided in subsection (8) of this section, each appointment of an agent shall remain in effect until the earliest of the following: (a) The commissioner revokes or otherwise terminates the agent's license; (b) The commissioner suspends, revokes, or otherwise terminates the appointment; or (c) The insurer terminates the appointment as provided in KRS 304.9-280. (8) (a) Biennially, before January 31, the department shall distribute to each insurer a listing of the names and individual identification numbers of that insurer's agents whose appointments were in effect during the preceding calendar year and who were not terminated on or prior to December 31 of that calendar year. (b) Any appointment not expressly terminated shall remain in effect as to the lines of authority thereof for which the respective agents are currently appointed, and subject to the fees specified under KRS 304.4-010. (c) On or before March 31, each insurer shall submit the renewal of appointment fee as specified in KRS 304.4-010 for each appointment not terminated on or prior to December 31 of the preceding calendar year. (9) (a) Any appointment as to which the request for renewal and fees are not received by the commissioner by March 31 shall be deemed to have expired at midnight on March 31. (b) Any appointment renewal request and fees received by the commissioner after March 31 and prior to the next following June 30 may be accepted by the commissioner, in his or her discretion, and the expired appointment may be reinstated as of March 31 if the late request and fees are accompanied by a penalty as provided in KRS 304.99-100. (10) As used in this section, "agent" includes a managing general agent, a rental vehicle agent, and a rental vehicle agent managing employee. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 19, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1063, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 12, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 26, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 57, sec. 1, effective July 14, 2000; and ch. 393, sec. 21, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 483, sec. 14, effective July 15, 1998; and ch. 485, sec. 2, effective July 15, 1998. -- Amended 1982 Ky. Acts ch. 123, sec. 5, effective July 1 5, 1982; and ch. 320, sec. 14, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 27, effective June 18, 1970. Legislative Research Commission Note (7/15/2002). Although 2002 Ky. Acts ch. 273, sec. 26, contained a citation to "Section 54 of this Act" (codified as KRS 304.9-240) in subsection (8), it is clear from the context that Section 53 (codified as KRS 304.99-100) was intended, and this manifest clerical or typographical error was corrected in codification under the authority of KRS 7.136.

KRS 304.9-280 Termination of licensee's appointment -- Notice requirements -- Civil immunity -- Confidential and privileged information -- Commissioner's use of information

304.9-280. Termination of licensee's appointment -- Notice requirements -- Civil immunity -- Confidential and privileged information -- Commissioner's use of information (1) Subject to the agent contract rights of a rental vehicle agent, rental vehicle managing employee, managing general agent, or agent, if any, an insurer may terminate an appointment at any time. However, if any appointment is not terminated on or prior to December 31, then on January 1 the fees designated shall be due for submission as provided in KRS 304.9-270. (2) An insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with a licensee shall notify the commissioner within thirty (30) days following the effective date of the termination, using a form or a format prescribed by the commissioner, if the reason for termination is one (1) of the reasons set forth in KRS 304.9-440 or if the insurer has knowledge the licensee was found by a court, government body, or self-regulatory organization authorized by law to have engaged in any of the activities in KRS 304.9-440. Termination under this subsection shall be deemed termination for cause. Upon the written request of the commissioner the insurer shall provide additional information, documents, records, or other data pertaining to the termination or activity of the licensee. (3) An insurer or authorized representative of the insurer that terminates the appointment of a licensee for any reason not set forth in subsection (2) of this section, shall notify the commissioner within thirty (30) days following the effective date of the termination, using a form or a format prescribed by the commissioner. Termination under this subsection shall be deemed termination without cause. Upon written request of the commissioner, the insurer shall provide additional information, documents, records, or other data pertaining to the termination. (4) The insurer or the authorized representative of the insurer shall promptly notify the commissioner in a form or a format acceptable to the commissioner if, upon further review or investigation, the insurer discovers additional information that would have been reportable to the commissioner in accordance with subsection (2) of this section had the insurer known of its existence. (5) (a) Within fifteen (15) days after making the notification required for termination without cause, the insurer shall mail a notice of the termination to the licensee at his or her last known address by first-class mail. The notice of termination shall include and indicate the reasons for termination provided to the commissioner. (b) Within fifteen (15) days after making the notification required for termination for cause, the insurer shall provide a copy of the form to the licensee at his or her last known address by certified mail, return receipt requested, postage prepaid, or by overnight delivery using a nationally recognized carrier. (c) Within thirty (30) days after the licensee has received a copy of the form, the licensee may file written comments concerning the substance of the notification with the commissioner. The licensee shall, by the same means, simultaneously send a copy of the comments to the reporting insurer, and the comments shall become a part of the commissioner's file and accompany every copy of a report distributed or disclosed for any reason about the licensee as permitted under subsection (7)(c) of this section. (6) (a) 1. In the absence of actual malice, an insurer, the authorized representative of the insurer, a licensee, the commissioner, or their respective representatives or employees, or an organization of which the commissioner is a member and that compiles the information and makes it available to other insurance commissioners or regulatory or law enforcement agencies, shall not be subject to civil liability, and a civil cause of action of any nature shall not arise against these individuals, entities, or their respective representatives or employees as a result of: a. Any statement or information required by or provided in accordance with this section; b. Any information relating to any statement that may be requested in writing from an insurer or licensee by the commissioner; or c. A statement by a terminating insurer or licensee to an insurer or licensee that is limited solely and exclusively to whether a termination for cause under subsection (2) of this section was reported to the commissioner. 2. The propriety of any termination for cause under subsection (2) of this section shall be certified in writing by an officer or authorized representative of the insurer or licensee terminating the relationship. (b) In any action brought against an individual, business entity, or organization that may have immunity under paragraph (a) of this subsection for making any statement required by this section or providing any information relating to any statement that may be requested by the commissioner, the party bringing the action shall plead specifically in any allegation that paragraph (a) of this subsection does not apply because the individual, business entity, or organization making the statement, or providing the information did so with actual malice. (c) Paragraph (a) or (b) of this subsection shall not abrogate or modify any existing statutory or common law privileges or immunities. (7) (a) 1. Any document, material, or other information in the control or possession of the department that is furnished by an insurer, licensee, or an employee or representative acting on behalf of the insurer or licensee, or obtained by the commissioner in an investigation in accordance with this section: a. Shall be confidential by law and privileged; b. Shall not be subject to subpoena; or c. Shall not be subject to discovery or admissible in evidence in any private civil action. Notwithstanding subdivisions a., b., and c. of this subparagraph, any document, material, or other information that is furnished by an insurer, licensee, or an employee or representative acting on behalf of the insurer or licensee, or obtained by the commissioner in an investigation in accordance with this section, that is used in a formal administrative proceeding or enforcement action in accordance with KRS Chapter 13B shall be subject to the Kentucky Open Records Act. 2. However, the commissioner is authorized to use the documents, materials, or other information referred to in paragraph (a)1. of this subsection in the furtherance of any regulatory or legal action brought to carry out the commissioner's duties. (b) Neither the commissioner nor any individual 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 paragraph (a) of this subsection. (c) In order to assist in the performance of the commissioner's duties, as set forth in KRS 304.2-100, the commissioner: 1. May share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to paragraph (a) of this subsection, with other state, federal, and international regulatory agencies, with the National Association of Insurance Commissioners, its affiliates, or subsidiaries, and with state, federal, and international law enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the documents, materials, or other information; 2. May receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the National Association of Insurance Commissioners, its affiliates or subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any documents, materials, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the documents, materials, or information; and 3. May enter into agreements governing sharing and use of information consistent with this subsection. (d) 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 or of sharing as authorized in this subsection. (e) The commissioner shall release only final, adjudicated actions, including for- cause terminations that are open to public inspection in accordance with the Kentucky Open Records Act, KRS 61.870 to 61.884. (f) As part of the nonresident license certification process, the department shall release only final adjudicated actions on licensees identified in subsection (1) of this section. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1064, effective July 15, 2010; and ch. 83, sec. 7, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 13, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 393, sec. 22, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 485, sec. 3, effective July 15, 1998. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 28, effective June 18, 1970. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 83, which do not appear to be in conflict and have been codified together.

KRS 304.9-290 Rights of agent following termination of appointment

304.9-290. Rights of agent following termination of appointment Following termination of an appointment and subject to the terms of any agreement between the agent and the insurer, the agent may continue to service, and receive from the insurer commissions or other compensation relative to, business written by him or her for the insurer during the existence of the appointment, so long as the agent continues to be licensed as to the kinds of insurance involved. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 393, sec. 23, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 29, effective June 18, 1970.

KRS 304.9-295 Biennial continuing education requirements for licensed agents and independent and public adjusters -- Exceptions -- Courses -- Number of hours -- Failure to complete -- Penalty

304.9-295. Biennial continuing education requirements for licensed agents and independent and public adjusters -- Exceptions -- Courses -- Number of hours -- Failure to complete -- Penalty (1) This section shall apply to individuals who hold licenses or lines of authority requiring continuing education each biennium. (2) The continuing education biennial compliance date for an individual resident licensee shall be as follows: (a) A licensee whose birth date is in an even-numbered year shall satisfy continuing education requirements on or before the last day of the licensee's birth month in the even-numbered year. A licensee shall show proof of compliance to the commissioner within sixty (60) days after the continuing education biennial compliance date. If the licensee has not held the license for one (1) year, the compliance date is adjusted to the next even -numbered year and each subsequent even -numbered year thereafter. If the license becomes inactive and reissued within a twelve (12) month period, th e compliance date shall remain the same; and (b) A licensee whose birth date is in an odd -numbered year shall satisfy continuing education requirements and show proof of compliance to the commissioner on or before the last day of the licensee's birth month in the odd-numbered year. A licensee shall show proof of compliance to the commissioner within sixty (60) days after the continuing education biennial compliance date. If the licensee has not held the license for one (1) year, the compliance date is adjus ted to the next odd-numbered year and each subsequent odd-numbered year thereafter. If the license becomes inactive and reissued within a twelve (12) month period, the compliance date shall remain the same. (3) This section shall not apply to: (a) Limited lines of authority under agent licenses, as exempted by the commissioner in accordance with KRS 304.9 -230; (b) Licensees not licensed for one (1) full year prior to the end of the applicable continuing education biennium; (c) Licensees holding nonresident licenses who have met the continuing education requirements of their home state and whose home state gives credit to Kentucky resident licensees on the same basis; or (d) Licensees maintaining their licenses for the sole purpose of receiving renewals or deferred commissions and providing the department with a supporting affidavit. (4) A licensee, who holds an agent license and who is not exempt under subsection (3) of this section, shall satisfactorily complete a minimum of twenty -four (24) hours of continuing education courses, of which three (3) hours shall have a course concentration in ethics, during each continuing education biennium. (5) (a) An individual who holds an independent or public adjuster license, including a nonresident independent or public adjuster that designates Kentucky as his or her home state, and who is not exempt under KRS 304.9 -430(10), shall satisfactorily complete a minimum of twenty-four (24) hours of continuing education courses, of which three (3) hours shall have a course concentration in ethics in accordance with subsection (4) of this section. (b) Continuing education hours shall be reported to the commissioner on a biennial basis in conjunction with the licensee's renewal in accordance with subsection (10) of this section. (6) (a) Only continuing education courses approved by the commissioner shall be used to satisfy the continuing education requirements of this section and any other continuing education requirement of this chapter. (b) The continuing education courses which meet the commissioner's standards for continuing education requirements are: 1. Any part of the Life Underwriter Training Council life course curriculum; 2. Any part of the Health Underwriter Training Council health course curriculum; 3. Any part of the American College Chartered Life Underwriter diploma curriculum; 4. Any part of the American Institute for Property and Liability Underwriters' chartered property and casualty underwriter profession designation program; 5. Any part of the Insurance Institute of America's programs; 6. Any part of the certified insurance counselor program; 7. Any insurance related course taught at an accredited college or university, if the course is approved by the commissioner; 8. Any course of instruction or seminar developed or sponsored by any authorized insurer, recognized agent association, recognized insurance trade association, or any independent program of instruction, if approved by the commissioner; 9. Any correspondence course approved by the commissioner; and 10. Any course in accordance with provisions of reciprocal agreements the commissioner enters with other states. (c) 1. The commissioner shall prescribe the number of hours of continuing education credit for each continuing education course approved in accordance with this subsection. 2. Continuing education courses submitted in accordance with a reciprocal agreement shall be approved according to the provisions of the reciprocal agreement. (d) If a continuing education course requires successful completion of a written examination, no continuing education credit shall be given to licensees who do not successfully complete the written examination. (e) The fee for filing continuing education courses for approval by the commissioner shall be as specified in Subtitle 4 of KRS Chapter 304. (f) For continuing education courses of reciprocal states, continuing education providers shall be approved in accordance with the provisions of the reciprocal agreements. (7) An individual teaching any continuing education course approved by the commissioner shall qualify for the same number of hours of continuing education credit as would be granted to a licensee taking and satisfactorily completing the course. (8) Excess credit hours accumulated during any continuing education biennium may be carried forward. The commissioner may, by administrative regulation, limit the number of hours carried forward. (9) (a) For good cause shown, the commissioner may grant an extension of time during which the continuing education requirement of subsection (2) of this section may be completed, but the extension of time shall not exceed two (2) years. (b) What constitutes good cause for the extension of time rests within the discretion of the commissioner. (10) (a) Every licensee subject to this section shall furnish to the commissioner written certification as to the continuing education courses satisfactorily completed by the licensee. (b) The certification shall: 1. Be signed by or on behalf of the provider sponsoring the continuing education course; and 2. Contain an attestation signed by the licensee. (c) The certification shall be on a form prescribed by the commissioner. (d) A licensee is responsible for ensuring that a certification submitted by the licensee under this subsection: 1. Contains the correct license identification number; and 2. Is applied to the licensee's license record. (11) (a) The provider shall furnish to the commissioner certification as to the continuing education courses satisfactorily completed by each licensee. (b) The certification shall be signed or authenticated by or on behalf of the provider sponsoring the continuing education course. (c) The certification shall be on a form or in a format prescribed by the commissioner. (12) The license or line of authority requiring continuing education shall expire if the individual holding the license or line of authority: (a) Fails to comply with the continuing education requirement; and (b) Has not been granted an extension of time to comply in accordance with subsection (9) of this section. (13) If an individual submits to the commissioner a false or fraudulent certification of compliance with a continuing education requirement, the commissioner shall, in accordance with KRS 304.9-440, suspend or revoke the license of the individual, impose a civil penalty, or both. (14) (a) The commissioner may withdraw approval of a continuing education provider, course, or instructor for good and just cause. (b) In addition to or in lieu of withdrawal of approval, the commissioner may impose a civil penalty of not more than one thousand dollars ($1,000) per violation of this chapter by a provider or an instructor. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 45, sec. 20, effective July 15, 2026; and ch. 141, sec. 11, effective April 13, 2026. -- Amended 2017 Ky. Acts ch. 34, sec. 5, effective June 29, 2017. -- Amended 2010 Ky. Acts ch. 24, sec. 1065, effective July 15, 2010; and ch. 83, sec. 8, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 14, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 27, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 24, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 378, sec. 1, effective July 15, 1998. -- Amended 1988 Ky. Acts ch. 408, sec. 2, effective July 15, 1988. -- Created 1986 Ky. Acts ch. 438, sec. 1, effective July 1, 1987. Legislative Research Commission Note (7/15/2026). This statute was amended by 2026 Ky. Acts chs. 45 and 141, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (7/15/2010). A reference to the "executive director" of insurance in subsection (5) of this section, as amended by 2010 Ky. Acts ch. 83, sec. 8, 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.

KRS 304.9-300 Temporary license as agent -- Conditions -- Sponsor may be required

304.9-300. Temporary license as agent -- Conditions -- Sponsor may be required (1) The commissioner may issue a temporary license for a period not to exceed one hundred eighty (180) days without requiring an examination or prelicensing course of study if the commissioner deems that a temporary license is necessary for the servicing of an insurance business in the following cases: (a) To the surviving spouse or court-appointed personal representative of a licensed agent who dies or becomes mentally or physically disabled, to allow adequate time for the: 1. Sale of the insurance business owned by the agent; 2. Recovery or return of the agent to the business; or 3. Training and licensing of new personnel to operate the agent's business; (b) To a member or employee of a business entity licensed as an agent, upon the death or disability of the sole individual designated in the business entity application or the license; (c) To the designee of a licensed agent entering upon active service in the Armed Forces of the United States; and (d) In any other circumstance where the commissioner deems that the public interest will best be served by the issuance of this license. (2) In addition to the restrictions on temporary licenses set forth in KRS 304.9-310, the commissioner may, by order, limit the authority of any temporary licensee in any way deemed necessary to protect insureds and the public. The commissioner may require the temporary licensee to have a suitable sponsor who is a licensed agent or insurer and who assumes responsibility for all acts of the temporary licensee, and may impose other similar requirements designed to protect insureds and the public. The commissioner may, by order, revoke a temporary license if the interests of insureds or the public are endangered. A temporary license shall not continue after the owner or the personal representative disposes of the business. (3) Application for a temporary license shall be filed with the commissioner in the form and containing the information as the commissioner may reasonably require, and be accompanied by the application fee as specified in KRS 304.4-010. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1066, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 393, sec. 25, effective July 14, 2000. -- Amended 1978 Ky. Acts ch. 161, sec. 3, effective June 17, 1978. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 30, effective June 18, 1970.

KRS 304.9-310 Temporary licenses -- Rights and limitations

304.9-310. Temporary licenses -- Rights and limitations (1) The temporary license may cover only the same kinds of insurance for which the agent thereby being replaced was licensed. (2) The temporary licensee may represent under the license all insurers last represented by the replaced agent, and without the necessity of new appointments of the licensee; but the licensee shall not be appointed as to any additional insurer of additional kind of insurance under a temporary license. This provision shall not be deemed to prohibit termination of its appointment by any insurer. (3) A temporary license shall have the same license powers and duties as under a permanent license but shall not be obtained for the sole production of controlled business as defined in KRS 304.9-100, and no sale of insurance of any kind shall be made upon the licensee's own life or the lives of any relative by blood or marriage. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 393, sec. 26, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 31, effective June 18, 1970.

KRS 304.9-320 Qualifications for license as consultant -- Coverage of consultant license

304.9-320. Qualifications for license as consultant -- Coverage of consultant license For the protection of the people of this Commonwealth the commissioner shall not issue, continue, or permit to exist any license as consultant except in compliance with this subtitle, or as to any person not qualified therefor as follows: (1) If an individual, the applicant: (a) Must be eighteen (18) or more years of age; (b) Must have had not less than five (5) years of actual experience as a licensed agent with respect to the kinds of insurance and contracts to be covered by the license; (c) Must have a thorough knowledge of insurance and annuity contracts of the kinds proposed to be covered under the license; (d) Must satisfy the commissioner by written examination; and (e) Must be competent, trustworthy under highest fiduciary standards, financially responsible, and of good personal and business reputation. (2) If a business entity, the applicant: (a) Must complete and submit a National Association of Insurance Commissioners uniform license application; (b) Must pay applicable fees as set forth in KRS 304.4-010; (c) Must be competent, trustworthy under the highest fiduciary standards, financially responsible, and of good business reputation; and (d) Must designate each individual authorized to act for the business entity under its consultant license in accordance with KRS 304.9-133. (3) A consultant license shall cover either or both of the following categories, as selected by the licensee: (a) Property and casualty; or (b) Life and health. A consultant licensed in both categories shall qualify separately for, and be licensed in, each category. Effective: July 12, 2012 History: Amended 2012 Ky. Acts ch. 74, sec. 3, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 1067, effective July 15, 2010. -- Amended 2006 Ky. Acts ch. 254, sec. 3, effective July 12, 2006. -- Amended 2005 Ky. Acts ch. 143, sec. 15, effective June 20, 2005. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 32, effective June 18, 1970.

KRS 304.9-330 Consultant to file proof of liability insurance -- Consultant's deposit of cash or bond

304.9-330. Consultant to file proof of liability insurance -- Consultant's deposit of cash or bond (1) To the extent the Gramm-Leach-Bliley Act, 15 U.S.C. sec. 6751(f), provides that evidence of financial responsibility may be required for licensing, every licensed consultant shall maintain in effect while so licensed: (a) The certificate of an insurer authorized to write legal liability insurance in this state, that the insurer has and will keep in effect on behalf of the consultant a policy of insurance covering the legal liability of the consultant as the result of erroneous acts or failure to act in his or her capacity as an insurance consultant, and inuring to the benefit of any aggrieved party as the result of any single occurrence in the sum of not less than twenty thousand dollars ($20,000) and one hundred thousand dollars ($100,000) in the aggregate for all occurrences within one (1) year; or (b) A cash surety bond executed by an insurer authorized to write this business in this Commonwealth, in the sum of twenty thousand dollars ($20,000) which shall be subject to lawful levy of execution by any party to whom the consultant has been found to be legally liable as the result of erroneous acts or failure to act in his or her capacity as a consultant. (2) The bond shall indemnify any person damaged by any fraudulent or unlawful act or conduct of the licensee in transactions under the license, and shall likewise be conditioned upon faithful accounting and application of all moneys coming into the licensee's possession in connection with his or her activities as the licensee. (3) The bond shall remain in force until canceled by the surety. Without prejudice to any liability previously incurred thereunder, the surety may cancel the bond upon thirty (30) days advance written notice to the licensee. Effective: July 12, 2012 History: Amended 2012 Ky. Acts ch. 74, sec. 4, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 1068, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 28, effective July 15, 2002. -- Amended 1982 Ky. Acts ch. 171, sec. 3, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 33, effective June 18, 1970.

KRS 304.9-340 Repealed, effective July 15, 1982

304.9-340. Repealed, effective July 15, 1982 Catchline at repeal: Combined licensing prohibited. History: Repealed 1982 Ky. Acts ch. 171, sec. 8, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 34, effective June 18, 1970.

KRS 304.9-350 Compensation of agent operating under a disclosure agreement -- Requirements

304.9-350. Compensation of agent operating under a disclosure agreement -- Requirements (1) A consultant who is also licensed as an agent shall not, directly or indirectly, receive or share in both a fee and other compensation paid, directly or indirectly, from an insured or any insurer with respect to any insurance or annuity contract procured, renewed, continued, modified, terminated, or otherwise disposed of pursuant to any recommendation given or transaction engaged in by the licensee under this license or any license issued under this code. (2) (a) If the licensee has received or is to receive any fee, commission, or compensation from the insured or proposed insured, or from any other person other than the insurer, directly or indirectly, with respect to any insurance transaction or proposed insurance transaction, or with respect to any insurance or annuity contract existing or proposed, it shall conclusively be presumed that the licensee was acting as a consultant with respect to such transaction or contract. (b) An individual or business entity dually licensed as a consultant and an agent shall not sell, solicit, or negotiate insurance, or otherwise act as an agent, either directly or indirectly, with respect to the insurance risk of the insured or prospective insured that was the subject of a written consulting contract required by subsection (4) of this section: 1. During the term of the written consulting contract; or 2. Within twelve (12) months after the expiration of the consulting contract, but no less than twenty-four (24) months from the inception of the contract. (c) An agent who has a financial or business ownership interest or affiliation with the consultant acting as such pursuant to a written consulting contract required by subsection (4) of this section shall not sell, solicit, or negotiate insurance, either directly or indirectly, with respect to the insurance risk of the insured or prospective insured that was the subject of a consulting contract: 1. During the term of the written consulting contract; or 2. Within twelve (12) months after the expiration of the consulting contract, but no less than twenty-four (24) months from the inception of the contract. (d) Consulting fees paid to a consultant pursuant to a written contract in compliance with subsection (4) of this section may be shared between a business entity licensed as a consultant and an individual who is licensed as a consultant and is an owner, officer, partner, member, or employee of the business entity. (3) No person licensed as a consultant under this section may receive any fee, commission or thing of value for examining, appraising, reviewing or evaluating any insurance policy, bond, annuity or pension or profit-sharing contract, plan or program or for making recommendation or giving advice with regard to any of the above, unless such compensation is based upon a prior written contract as provided in subsection (4) of this section. (4) Prior to the provision of consultant's services, a person licensed as a consultant under this section shall disclose the following in a written contract signed by the party to be charged: (a) The services to be provided by the consultant to the insured and prospective insured; (b) The beginning and ending date of the agreement; (c) Any insurance to which the contract for consultant's services applies; (d) The arrangement for compensation of the consultant, whether by a flat rate, hourly rate, or otherwise; (e) Whether the consultant is dually licensed as an agent; and (f) Whether the consultant has a financial or business ownership interest in or affiliation with, or controls in whole or in part, any business entity or insurer. A copy of every contract shall be retained by the consultant for not less than five (5) years after expiration of the contract. (5) No person licensed as a consultant may receive any compensation, direct or indirect, as a result of: (a) The sale of insurance or annuities to; or (b) The use of securities or trusts in connection with pensions for any person to whom any such licensee has performed any related consulting service for which he has received a fee or contracted to receive a fee within the preceding twelve (12) months unless such compensation is provided for in the written contract required by subsection (4) of this section. (6) No person licensed as an insurance consultant under this section may be an executive in, or employee of, or own stock which gives him a majority interest, direct or indirect, in any authorized insurer. No consultant may recommend or encourage the purchase of insurance, annuities, or securities from any authorized insurer in which any member of his immediate family holds an executive position or holds a majority interest. (7) A person dually licensed as a consultant and an agent shall not act as both a consultant and an agent with regards to any risk which is the subject of a contract required by subsection (4) of this section. (8) Nothing in this section shall prohibit an agent who holds some form of formal financial planning certification or designation recognized in administrative regulation promulgated by the department from receiving a fee for services provided under that certification or designation and from receiving a commission for the sale, solicitation, or negotiation of life insurance or annuities if: (a) Prior to providing financial planning services, the agent discloses the following in a written contract signed by the party to be charged: 1. The financial planning services for which the fee is to be charged; 2. The amount of the fee to be charged, including a description of how the fee will be determined or calculated; and 3. That the party to be charged is under no obligation to purchase any insurance product through the agent; and (b) Prior to the execution of the written agreement provided for in paragraph (a) of this subsection, or solicitation of the sale of a product or service, the agent discloses that: 1. He or she is an agent; and 2. A commission for the sale, solicitation, or negotiation of insurance will be received in addition to a fee for financial planning, if applicable. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1069, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 31, sec. 1, effective July 15, 2008. -- Amended 1982 Ky. Acts ch. 171, sec. 4, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 35, effective June 18, 1970.

KRS 304.9-360 Obligation to serve interest of client

304.9-360. Obligation to serve interest of client A consultant is obligated, under his license, to serve with objectivity and complete loyalty the interests of his client alone; and to render his client such information, counsel and service, as within the knowledge, understanding and opinion in good faith of the licensee, as will best serve the client's insurance or annuity needs and interests. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 36, effective June 18, 1970.

KRS 304.9-370 Service of process against nonresident licensee under this subtitle or surplus lines broker

304.9-370. Service of process against nonresident licensee under this subtitle or surplus lines broker (1) Application for and acceptance of a license issued under this subtitle or as a surplus lines broker by a nonresident of Kentucky shall be deemed to constitute irrevocable appointment of the Secretary of State as the attorney of the licensee for the acceptance of service of process issued in this state in any action or proceeding against the licensee arising out of the licensing or out of transactions under the license. (2) Service of process against any nonresident licensee may be made in any action by service upon the Secretary of State as provided in KRS 304.3-230. Effective: July 15, 2002 History: Amended 2002 Ky. Acts ch. 273, sec. 29, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 27, effective July 14, 2000. -- Amended 1982 Ky. Acts ch. 319, sec. 4, effective July 15, 1982; and ch. 320, sec. 15, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 114, sec. 70, effective July 15, 1980. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 37, effective June 18, 1970.

KRS 304.9-371 Written agreement of administrator

304.9-371. Written agreement of administrator (1) No administrator shall act as such without a written agreement between the administrator and the insurer. Such written agreement shall be retained as part of the official records of both parties to the transaction for the duration of the agreement and at least five (5) years thereafter. Such written agreement shall contain provisions which include the requirements of KRS 304.9-372 to 304.9-377, except insofar as those requirements do not apply to the functions performed by the administrator. (2) Where a contract is issued to a trustee or trustees, a copy of the trust agreement and any amendments thereto shall be furnished to the insurer by the administrator and shall be retained as part of the official records of both parties for the duration of the contract and at least five (5) years thereafter. Effective: July 15, 1986 History: Created 1986 Ky. Acts ch. 162, sec. 4, effective July 15, 1986.

KRS 304.9-372 Payments to administrator

304.9-372. Payments to administrator When an insurer utilizes the services of an administrator under the terms of a written contract as required in KRS 304.9-371, the payment to the administrator of any premiums or charges for insurance by or on behalf of the insured shall be deemed to have been received by the insurer. However, in the payment of return premiums or claims by the insurer to the administrator, payment shall not be deemed payment to the insured until such payments are received by the insured. Nothing herein shall limit the right of the insurer against the administrator resulting from the administrator's failure to make payments to the insurer or any insured. Effective: July 15, 1986 History: Created 1986 Ky. Acts ch. 162, sec. 5, effective July 15, 1986.

KRS 304.9-373 Books and records maintained by administrator -- Access by commissioner

304.9-373. Books and records maintained by administrator -- Access by commissioner Every administrator shall maintain at its administrative office, for the duration of the written agreement referred to in KRS 304.9-371 and at least five (5) years thereafter, adequate books and records of all transactions between it, insurers, and insureds. Such books and records shall be maintained in accordance with prudent standards of insurance industry recordkeeping. The commissioner shall have access to such books and records for the purpose of examination, audit, and inspection. Any trade secrets contained therein, including but not limited to the identity and addresses of insureds, shall be confidential except the commissioner may use such information in any proceedings instituted against the administrator. An insurer shall retain the right to continuing access to such books and records of the administrator sufficient to permit the insurer to fulfill all of its contractual obligations to insureds subject to any restrictions in the written agreement between the insurer and administrator on the proprietary rights of the parties in such books and records. Any examination or any part of the examination of any administrator shall be made by the commissioner or by examiners designated by the commissioner and shall be at the expense of the administrator examined as specified in Subtitle 2 of this chapter. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1070, effective July 15, 2010. -- Amended 1986 Ky. Acts ch. 162, sec. 6, effective July 15, 1986.

KRS 304.9-374 Administrator's use of advertising

304.9-374. Administrator's use of advertising An administrator may use only such advertising pertaining to its business underwritten by an insurer as has been approved by such insurer in advance of its use. Effective: July 15, 1986 History: Created 1986 Ky. Acts ch. 162, sec. 7, effective July 15, 1986.

KRS 304.9-375 Fiduciary accounts

304.9-375. Fiduciary accounts All charges or premiums collected by an administrator on behalf of or for an insurer and return premiums or charges received from such insurer shall be held by the administrator in a fiduciary capacity. Such funds shall be immediately remitted to the person or persons entitled thereto, or shall be deposited promptly in a fiduciary bank account established and maintained by the administrator. If charges or premiums so deposited have been collected on behalf of or for more than one (1) insurer, the administrator shall cause the bank in which such fiduciary account is maintained to keep records clearly recording the deposits and withdrawals from such account on behalf of or for each insurer. The administrator shall promptly obtain and keep copies of all such records and, upon request of an insurer, shall furnish such insurer with copies of such records pertaining to deposits and withdrawals on behalf of or for such insurer. The administrator shall not pay any claim by withdrawals from such fiduciary account. Withdrawals from such fiduciary account shall be made, as provided in the written agreement between the administrator and the insurer, for: (1) Remittance to an insurer entitled thereto; (2) Deposit in an account maintained in the name of such insurer; (3) Transfer to and deposit in a claims paying account with claims to be paid as provided in KRS 304.9-376; (4) Payment to a group policyholder for remittance to the insurer entitled thereto; (5) Payment to the administrator of its commission, fees, or charges; or (6) Remittance of return premium or charges to any person entitled thereto. Effective: July 15, 1986 History: Created 1986 Ky. Acts ch. 162, sec. 8, effective July 15, 1986.

KRS 304.9-376 Claims paid on behalf of insurer -- Compensation of administrator

304.9-376. Claims paid on behalf of insurer -- Compensation of administrator (1) All claims paid by the administrator from funds collected on behalf of the insurer shall be paid only on drafts of and as authorized by such insurer. (2) With respect to any contracts where an administrator adjusts or settles claims, the compensation to the administrator with regard to such policies shall in no way be contingent on claim experience. This subsection shall not prevent the compensation of an administrator from being based on premiums or charges collected or number of claims paid or processed. Effective: July 15, 1986 History: Created 1986 Ky. Acts ch. 162, sec. 9, effective July 15, 1986.

KRS 304.9-377 Written notice to insureds when administrator's services utilized

304.9-377. Written notice to insureds when administrator's services utilized Where the services of an administrator are utilized, the administrator shall provide a written notice approved by the insurer to insureds advising them of the identity of and the relationship among the administrator, the group contract holder, and the insurer. Where an administrator collects funds, it must identify and state separately in writing to the person paying to the administrator any charge or premium for coverage the amount of any such charge or premium specified by the insurer for such coverage. Effective: July 15, 1986 History: Created 1986 Ky. Acts ch. 162, sec. 10, effective July 15, 1986.

KRS 304.9-380 Repealed, 2000

304.9-380. Repealed, 2000 Catchline at repeal: Solicitors -- Special requirements. History: Repealed 2000 Ky. Acts ch. 393, sec. 48, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 38, effective June 18, 1970.

KRS 304.9-390 Place of agent's business -- Display of licenses -- Records

304.9-390. Place of agent's business -- Display of licenses -- Records (1) Every individual and business entity issued a license with Kentucky as its home state shall have and maintain in this state a place of business accessible to the public, and wherein the licensee principally conducts transactions under his or her license. This provision shall not be deemed to prohibit maintenance of this place of business in the office of an insurer, office of the employer, or in the residence of the licensee. (2) The licenses of the licensee shall be conspicuously displayed in each of the places of business in a part customarily open to the public. (3) The licensee shall keep at his or her place of business complete records of transactions under the license. (a) The records shall be kept available for inspection by the commissioner for a period of at least five (5) years after completion of the respective transactions. (b) For an insurance producer, the record shall show, as to each insurance policy or contract placed by or through the licensee, the names of the insurer and insured, the number and expiration date of, and premium payable as to, the policy or contract, and any other information as the commissioner may reasonably require. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1071, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 30, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 28, effective July 14, 2000. -- Amended 1986 Ky. Acts ch. 437, sec. 14, effective July 15, 1986. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 39, effective June 18, 1970.

KRS 304.9-400 Reporting and accounting for premiums

304.9-400. Reporting and accounting for premiums That portion of all premiums or moneys which an insurance producer collects from an insured and which is to be paid to an insurer, its agents, its managing general agents or his or her principal because of the assumption of liability through the issuance of policies or contracts for insurance, shall be held by the insurance producer in a fiduciary capacity and shall not be misappropriated or converted to his or her own use or illegally withheld by the insurance producer. Effective: July 15, 2002 History: Amended 2002 Ky. Acts ch. 273, sec. 31, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 29, effective July 14, 2000. -- Amended 1986 Ky. Acts ch. 307, sec. 6, effective July 15, 1986. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 40, effective June 18, 1970.

KRS 304.9-410 Exchange of business -- Excess or rejected risks -- Regulation of volume of business by commissioner

304.9-410. Exchange of business -- Excess or rejected risks -- Regulation of volume of business by commissioner (1) An agent with a line of authority for property, casualty, or limited line surety insurance may: (a) Occasionally place an insurance coverage with an insurer as to which he or she is not then appointed as an agent, and such insurer may accept such business only when placed through an appointed agent of the insurer. Both agents involved in this exchange of business must be then licensed as to all of the kinds of insurance represented by the coverage; and (b) Without limitation, place insurance coverage with an insurer as to which he or she is not then appointed as agent, and such insurer may accept such business only if placed through a licensed managing general agent. (2) An agent with a line of authority for life or health insurance may, occasionally, place with another insurer as to which he or she is not appointed as agent, a particular risk or portion thereof which has been rejected by the insurers as to which the agent is appointed or is known to the agent to be unacceptable to such insurers, and without then being appointed as to the other insurer. (3) The commissioner shall, by regulation, establish the amount or volume of business that constitutes the occasional placement of business permitted by subsections (1) and (2) of this section. Such regulations may be based on a percentage or ratio of the agent's business or any other appropriate standard. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1072, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 32, effective July 15, 2002. -- Amended 1986 Ky. Acts ch. 307, sec. 5, effective July 15, 1986. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 41, effective June 18, 1970.

KRS 304.9-420 Repealed, effective July 13, 1984

304.9-420. Repealed, effective July 13, 1984 Catchline at repeal: Sharing of commissions. History: Repealed 1984 Ky. Acts ch. 322, sec. 20, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 171, sec. 5, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 42, effective June 18, 1970.

KRS 304.9-421 Sharing of commissions

304.9-421. Sharing of commissions Except as otherwise provided in KRS 304.52-030, no agent, consultant, adjuster, or surplus lines broker shall directly or indirectly share his or her commission or other compensation received or to be received on account of a transaction under his or her license with any individual or business entity not also licensed as agent, consultant, adjuster, or surplus lines broker under this subtitle as to the kinds of insurance involved in the transaction. This provision shall not affect personal use of the commissions or compensation, override commission, payment of the regular salaries due employees of the agent, consultant, adjuster, or surplus lines broker, or distribution in the regular course of business of compensation and profits among members, employees, or stockholders of licensee business entities. Effective: June 29, 2021 History: Amended 2021 Ky. Acts ch. 36, sec. 12, effective June 29, 2021. -- Amended 2010 Ky. Acts ch. 83, sec. 9, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 393, sec. 30, effective July 14, 2000. -- Created 1984 Ky. Acts ch. 322, sec. 9, effective July 13, 1984.

KRS 304.9-425 Payment or acceptance of commission, brokerage, or other valuable consideration -- Exception

304.9-425. Payment or acceptance of commission, brokerage, or other valuable consideration -- Exception (1) No insurer, financial institution, agent, surplus lines broker, adjuster, administrator, reinsurance intermediary broker or manager, rental vehicle agent or managing employee, life settlement broker or provider, or consultant shall pay, directly or indirectly, any commission, brokerage, or other valuable consideration to any individual or business entity for services as an agent, surplus lines broker, adjuster, administrator, reinsurance intermediary broker or manager, rental vehicle agent or managing employee, life settlement broker or provider, or consultant within this state, unless the individual or business entity held at the time the services were performed a valid license for that line of insurance as required by the laws of this state for the services. (2) No individual or business entity, other than an individual or business entity duly licensed by this state as an agent, surplus lines broker, adjuster, administrator, reinsurance intermediary broker or manager, rental vehicle agent or managing employee, life settlement broker or provider, or consultant at the time the services were performed, shall accept any commission, brokerage, or other valuable consideration for those services, unless the individual or business entity is licensed at the time the services were performed, if a license is required by law. (3) This section shall not prevent payment or receipt of renewal or other deferred commissions to or by any individual or business entity entitled under this section. (4) Services as an agent, surplus lines broker, adjuster, administrator, reinsurance intermediary broker or manager, rental vehicle agent or managing employee, or consultant within this state shall not include a referral by an unlicensed person of a consumer to a licensed agent, surplus lines broker, adjuster, administrator, reinsurance intermediary broker or manager, rental vehicle agent or managing employee, or consultant that does not include a discussion of specific insurance policy terms and conditions. (5) An insurer, financial institution, agent, surplus lines broker, adjuster, administrator, reinsurance intermediary broker or manager, rental vehicle agent or managing employee, or consultant may pay any compensation, fee, or other consideration to an individual not licensed to sell insurance for the referral of a consumer to a licensed individual, only if the consideration is paid regardless of whether the insurance coverage is sold to the consumer. Effective: June 25, 2013 History: Amended 2013 Ky. Acts ch. 123, sec. 2, effective June 25, 2013. -- Amended 2010 Ky. Acts ch. 83, sec. 10, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 32, sec. 18, effective July 15, 2008. -- Amended 2002 Ky. Acts ch. 273, sec. 33, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 31, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 171, sec. 6, effective July 15, 1982. Legislative Research Commission Note (7/15/2008). 2008 Ky. Acts ch. 32 intended to change all existing references in the KRS from "viatical settlements" to "life settlements." One reference to "viatical settlement" in this section was overlooked during the bill drafting process. The Reviser of Statutes has made this change upon the authority of KRS 7.136(1)(h).

KRS 304.9-430 Independent, staff, or public adjuster's license -- Limitation for two years beginning on April 13, 2026 -- Application by individual or business entity -- Qualifications -- Evidence of financial responsibility -- Exceptions to license requirement -- Temporary emergency registration following catastrophe -- Nonresident license

304.9-430. Independent, staff, or public adjuster's license -- Limitation for two years beginning on April 13, 2026 -- Application by individual or business entity -- Qualifications -- Evidence of financial responsibility -- Exceptions to license requirement -- Temporary emergency registration following catastrophe -- Nonresident license (1) (a) Except as provided in this section and KRS 304.52-060, no person shall in this state act as or hold himself, herself, or itself out to be an independent, staff, or public adjuster unless then licensed by the department as an independent, staff, or public adjuster. (b) Except as provided in paragraph (c) of this subsection and for a period of two (2) years beginning on April 13, 2026: 1. An application for a public adjuster license shall not be accepted or approved by the commissioner; and 2. The department shall not issue public adjuster licenses. (c) A person who has a temporary or apprentice adjuster license in effect on April 13, 2026, may apply for and be issued a public adjuster license in accordance with KRS 304.9-432. (d) A public adjuster license in effect on April 13, 2026: 1. May be renewed by the licensee in accordance with the requirements of this subtitle; and 2. Shall continue in force until expired, suspended, revoked, or otherwise terminated. (2) (a) An individual applying for a resident independent, staff, or public adjuster license shall make an application to the commissioner on the appropriate uniform individual application and in a format prescribed by the commissioner. (b) An applicant under paragraph (a) of this subsection shall declare under penalty of suspension, revocation, or refusal of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief. (c) The commissioner shall not approve an application submitted under paragraph (a) of this subsection unless the commissioner finds that the individual to be licensed: 1. Is at least eighteen (18) years of age; 2. Is eligible to designate Kentucky as the individual's home state; 3. Is trustworthy, reliable, and of good reputation, evidence of which shall be determined through an investigation by the commissioner; 4. Has not committed any act that is a ground for probation, suspension, revocation, or refusal of a license as set forth in KRS 304.9-440; 5. Has successfully passed the examination for the adjuster license and the applicable line of authority for which the individual has applied; 6. Has paid the fees established by the commissioner pursuant to KRS 304.4-010; and 7. Is financially responsible to exercise the license. (3) (a) To demonstrate financial responsibility, a person applying for a public adjuster license shall obtain a bond or irrevocable letter of credit prior to issuance of a license and shall maintain the bond or letter of credit for the duration of the license with the following limits: 1. A surety bond executed and issued by an insurer authorized to issue surety bonds in Kentucky, which bond shall: a. Be in the minimum amount of fifty thousand dollars ($50,000); b. Be in favor of the state of Kentucky; c. Specifically authorize recovery of any person in Kentucky who sustained damages as the result of the public adjuster's erroneous acts, failure to act, conviction of fraud, or conviction for unfair trade practices in his or her capacity as a public adjuster; and d. Not be terminated unless written notice is given to the licensee at least thirty (30) days prior to the termination; or 2. An irrevocable letter of credit issued by a qualified financial insti tution, which letter of credit shall: a. Be in the minimum amount of fifty thousand dollars ($50,000); b. Be subject to lawful levy of execution on behalf of any person to whom the public adjuster has been found to be legally liable as the result of erroneous acts, failure to act, conviction of fraud, or conviction for unfair practices in his or her capacity as a public adjuster; and c. Not be terminated unless written notice is given to the licensee at least thirty (30) days prior to the termination. (b) The commissioner may ask for evidence of financial responsibility at any time the commissioner deems relevant. (c) If the evidence of financial responsibility terminates or becomes impaired, the public adjuster license shall: 1. Automatically terminate; and 2. Be promptly surrendered to the commissioner without demand. (4) (a) A business entity applying for a resident independent or public adjuster license shall make an application to the commissioner on the appropriate uniform business entity application an d in a format prescribed by the commissioner. (b) An applicant under paragraph (a) of this subsection shall de clare under penalty of suspension, revocation, or refusal of the license that the statements made in the application are true, correct, and complete to the best of the business entity's knowledge and belief. (c) The commissioner shall not approve an applic ation submitted under paragraph (a) of this subsection unless the commissioner finds that the business entity: 1. Is eligible to designate Kentucky as its home state; 2. Has designated a licensed independent or public adjuster responsible for the business entity's compliance with the insurance laws and administrative regulations of Kentucky; 3. Has not committed an act that is a ground for probation, suspension, revocation, or refusal of an independent or public adjuster's license as set forth in KRS 304.9-440; and 4. Has paid the fees established by the commissioner pursuant to KRS 304.4-010. (5) For applications made under this section, the commissioner may: (a) Require additional information or submissions from applicants; and (b) Obtain any documents or information reasonably necessary to verify the information contained in an application. (6) A person or business entity who has met the applicable requirements of subsections (2) to (5) of this section shall be issued an independent, staff, or public adjuster license unless the person or business entity is denied licensure pursuant to KRS 304.9-440. (7) An independent or staff adjuster may qualify for a license in one (1) or more of the following lines of authority: (a) Property and casualty; (b) Workers' compensation; or (c) Crop. (8) Notwithstanding any other provision of this subtitle, an individual who is employed by an insurer to investigate suspected fraudulent insurance claims, but who does not adjust losses or determine claims payments, shall not be required to be licensed as a staff adjuster. (9) A public adjuster may qualify for a license in one (1) or more of the following lines of authority: (a) Property and casualty; or (b) Crop. (10) Notwithstanding any other provision of this subtitle, a license as an independent adjuster shall not be required of the following: (a) An individual who is sent into Kentucky on behalf of an insurer for the sole purpose of investigating or making adjustment of a particular loss resulting from a catastrophe, or for the adjustment of a series of losses resulting from a catastrophe common to all losses; (b) An attorney licensed to practice law in Kentucky, when acting in his or her professional capacity as an attorney; (c) A person employed solely to obtain facts surrounding a claim or to furnish technical assistance to a licensed independent adjuster; (d) An individual who is employed to investigate suspected fraudulent insurance claims, but who does not adjust losses or determine claims payments; (e) A person who: 1. Solely performs executive, administrative, managerial, or clerical duties, or any combination thereof; and 2. Does not investigate, negotiate, or settle claims with policyholders, claimants, or their legal representatives; (f) A licensed health care provider or its employee who provides managed care services if the services do not include the determination of comp ensability; (g) A health maintenance organization or any of its employees or an employee of any organization providing managed care services if the services do not include the determination of compensability; (h) A person who settles only reinsurance or su brogation claims; (i) An officer, director, manager, or employee of an authorized insurer, surplus lines insurer, or risk retention group, or an attorney -in-fact of a reciprocal insurer; (j) A United States manager of the United States branch of an alien insurer; (k) A person who investigates, negotiates, or settles claims arising under a life, accident and health, or disability insurance policy or annuity contract; (l) An individual employee, under a self-insured arrangement, who adjusts claims on behalf of the individual's employer; (m) A licensed agent, attorney-in-fact of a reciprocal insurer, or managing general agent of the insurer, to whom claim authority has been granted by an insurer; or (n) 1. A person who: a. Is an employee of a licensed independe nt adjuster, is an employee of an affiliate that is a licensed independent adjuster, or is supervised by a licensed independent adjuster, if there are no more than twenty-five (25) persons under the supervision of one (1) licensed individual independent ad juster or licensed agent who is exempt from licensure pursuant to paragraph (m) of this subsection; b. Collects claim information from insureds or claimants; c. Enters data into an automated claims adjudication system; and d. Furnishes claim information to insureds or claimants from the results of the automated claims adjudication system. 2. For purposes of this paragraph, "automated claims adjudication system" means a preprogrammed computer system designed for the collection, data entry, calculation, and system-generated final resolution of consumer electronic products insurance claims that complies with claim settlement practices pursuant to Subtitle 12 of KRS Chapter 304. (11) Notwithstanding any other provision of this subtitle, a license as a staff adju ster shall not be required of an employee or agent of an insurer adjusting claims relating to food spoilage with respect to residential property insurance in which the amount of coverage for the applicable type of loss is contractually limited to one thous and dollars ($1,000) or less. (12) For purposes of this section, except as otherwise provided in subsection (14) of this section, "home state" means any state or territory of the United States or the District of Columbia in which an independent, staff, or public adjuster: (a) Maintains his, her, or its principal place of residence or business; and (b) Is licensed to act as a resident independent, staff, or public adjuster. (13) Temporary registration for emergency independent or staff adjusters shall be issued by the commissioner in the event of a catastrophe declared in Kentucky in the following manner: (a) An insurer shall notify the commissioner by submitting an application for temporary emergency registration of each individual not already licensed in the state where the catastrophe has been declared, who will act as an emergency independent adjuster on behalf of the insurer; (b) A person who is otherwise qualified to adjust claims, but who is not already licensed in the state, may act as an emergency independent or staff adjuster and adjust claims if, within five (5) days of deployment to adjust claims arising from the catastrophe, the insurer notifies the commissioner by providing the following information, in a format prescribed by the commissioner: 1. The name of the individual; 2. The Social Security number of the individual; 3. The name of the insurer that the independent or staff adjuster will represent; 4. The catastrophe or loss control number; 5. The catastrophe event name and date; and 6. Any other information the commissioner deems necessary; and (c) An emergency independent or staff adjuster's registration shall remain in force for a period not to exceed ninety (90) days, unless extended by the commissioner. (14) (a) As used in this subsection, "home state" has the same meaning as in subsection (12) of this section, except that for purposes of this subsection the term includes any state or territory of the United States or the District of Columbia in which an applicant under this subsection is licensed to act as a resident independent, staff, or public adjuster if the state or territory of the applicant's principal place of residence does not issue an independent, staff, or public adjuster license. (b) A nonresident person shall receive a nonresident independent, staff, or public adjuster license if: 1. The person is currently licensed in good standing as an independent, staff, or public adjuster in his, her, or its home state; 2. The person has submitted the proper request for licensure and has paid the fees required by KRS 304.4-010; 3. The person has submitted, in a form or format prescribed by the commissioner, the uniform individual application; 4. The person's designated home state issues nonresident independent, staff, or public adjuster licenses to persons of Kentucky on the same basis; and 5. The person is not denied licensure pursuant to KRS 304.9-440. (c) The commissioner may: 1. Verify an applicant's licensing status through any appropriate database, including the database maintained by the National Association of Insurance Commissioners, its affiliates, or subsidiaries; or 2. Request certification of an applicant's good standing. (d) As a condition to the continuation of a nonresident adjuster license, the licensee shall maintain a resident adjuster license in his, her, or its home state. (e) A nonresident adjuster license issued under this subsection shall terminate and be surrendered immediately to the commissioner if the licensee's resident adjuster license terminates for any reason, unless: 1. The termination is due to the licensee being issued a new resident independent, staff, or public adjuster license in his, her, or its new home state; and 2. The new resident state or territory has reciprocity with Kentucky. Effective: April 13, 2026 History: Amended 2026 Ky. Acts ch. 141, sec. 2, effective April 13, 2026. -- Amended 2023 Ky. Acts ch. 11, sec. 1, effective June 29, 2023. -- Amended 2021 Ky. Acts ch. 36, sec. 13, effective June 29, 2021. -- Amended 2019 Ky. Acts ch. 8, sec. 2, effective June 27, 2019. -- Amended 2017 Ky. Acts ch. 34, sec. 2, effective June 29, 2017. -- Amended 2012 Ky. Acts ch. 74, sec. 5, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 1073, effective July 15, 2010; and ch. 83, sec. 11, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 34, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 32, effective July 14, 2000. -- Amended 1984 Ky. Acts ch. 262, sec. 3, effective April 1,1985. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 43, effective June 18, 1970. Legislative Research Commission Note (7/15/2010). References to the "executive director" of insurance in this section, as amended by 2010 Ky. Acts ch. 83, sec. 11, have 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. These changes were 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 83. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 83, which was last enacted by the General Assembly, prevails under KRS 446.250.

KRS 304.9-432 Apprentice adjuster -- License -- Rights and limitations -- Application -- Qualifications -- Terms and conditions -- Limitation for two years beginning on April 13, 2026

304.9-432. Apprentice adjuster -- License -- Rights and limitations -- Application -- Qualifications -- Terms and conditions -- Limitation for two years beginning on April 13, 2026 (1) In the event that an applicant for an adjuster's license meets the qu alification requirements of KRS 304.9-430 except that he or she has not had experience or special education or training as to the handling of loss claims under insurance contracts of sufficient duration and extent to make him or her reasonably confident to fulfill the responsibilities as an adjuster, he or she shall not be required to take and successfully complete the prescribed written examination and may be issued a temporary license as an apprentice adjuster for a period not to exceed twelve (12) months. (2) A temporary license as an apprentice adjuster shall be subject to the following terms and conditions: (a) An individual holding a temporary license as apprentice adjuster shall have all of the privileges and obligations of an adjuster licensed under the insurance code; (b) An individual holding a temporary license as an apprentice adjuster shall at all times be a full-time salaried employee of an insurer or an adjuster and subject to training, direction, and control by a licensed adjuster acting in the same capacity as that for which the applicant applied; (c) A temporary license as apprentice adjuster shall be subject to suspension, revocation, or conditions in accordance with KRS 304.9-440; and (d) An individual may hold only one (1) temporary license as an apprentice adjuster. (3) An individual applying for a resident apprentice adjuster license shall make application to the commissioner on the appropriate uniform individual application, in a format prescribed by the commissioner, and declare under penalty of suspension, revocation, or refusal of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief. The commissioner shall not approve an application for a resident apprentice adjuster license unless the commissioner determines that the applicant: (a) Is at least eighteen (18) years of age; (b) Is a resident of Kentucky and has designated Kentucky as his or her home state; (c) Has a business or mailing address in the state for acceptance of service of process; (d) Has not committed any act that is a ground for probation or suspension, revocation, or denial of licensure as set forth in KRS 304.9-440; (e) Is trustworthy, reliable, and of good reputation, evidence of which may be determined by the commissioner; (f) Has paid the fees prescribed by administrative regulation promulgated pursuant to KRS 304.4-010; and (g) Has provided an attestation from a licensed independent, staff, or public adjuster with the same line of authority for which the apprentice has applied, attesting that the apprentice adjuster shall be subject to training, direction, and control by the licensed adjuster, and further certifying that the licensed adjuster assumes responsibility for the actions of the apprentice in the apprentice's capacity as an adjuster. (4) The apprentice adjuster license shall be subject to the following terms and conditions: (a) The apprentice adjuster shall only be authorized to adjust claims in the state that has issued the apprentice adjuster license; (b) The apprentice adjuster shall be restricted to participation in the investigation, settlement, and negotiation of claims subject to the review and final determination of the claim by the supervising licensed adjuster; (c) Compensation of an apprentice adjuster shall be on a salaried or hourly basis only; (d) The apprentice adjuster shall not be required to pass the independent or public adjuster examination, as required by KRS 304.9 -430(2), to adjust claims as an apprentice adjuster. At any time during the apprenticeship, the apprentice adjuster may choose to take the examination required by KRS 304.9 -430(2) and, if he or she passes the examination, the apprentice adjuster license shall automatically terminate and an adjuster license shall be issued to that individual in place thereof; and (e) The apprentice adjuster license shall be for a time period not to exceed twelve (12) months and is nonrenewable. (5) The licensed independent, staff, or public adjuster responsible for the apprentice adjuster shall only supervise the activities of t he apprentice adjuster as set forth in this subtitle. (6) Notwithstanding any other provision of this section and for a period of two (2) years beginning on April 13, 2026: (a) An application for a temporary or apprentice adjuster license from a person that would be supervised by a public adjuster shall not be accepted or approved by the commissioner; and (b) The department shall not issue temporary or apprentice adjuster licenses to a person that would be supervised by a public adjuster. Effective: April 13, 2026 History: Amended 2026 Ky. Acts ch. 141, sec. 3, effective April 13, 2026. -- Amended 2010 Ky. Acts ch. 83, sec. 14, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 35, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 33, effective July 14, 2000. -- Created 1984 Ky. Acts ch. 262, sec. 4, effective April 1, 1985. Legislative Research Commission Note (7/15/2010). References to the "executive director" of insurance in subsection (3) of this section, as amended by 2010 Ky. Acts ch. 83, sec. 14, have 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. These changes were made by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.

KRS 304.9-433 Contract between public adjuster and insured -- Requirements -- Contents -- Disclosure statement -- Duties of public adjuster -- Rescission period -- Contract in violation of chapter

304.9-433. Contract between public adjuster and insured -- Requirements -- Contents -- Disclosure statement -- Duties of public adjuster -- Rescission period -- Contract in violation of chapter (1) (a) Except as provided in paragraph (b) of this subsection, a public adjuster shall not provide services to an insured until: 1. A written contract with the insured has been executed on a form that has been prefiled with and approved by the commissioner; and 2. The rescission period required under subsection (8) of this section has concluded. (b) Subject to KRS 304.9-4333(3), the commissioner may approve a form that allows a public adjuster to be compensated for services provided to an insured prior to the: 1. Execution of the written contract; or 2. Conclusion of the rescission period required under subsection (8) of this section; in emergency circumstances. (c) A form prefiled with the commissioner by a public adjuster for approval under paragraph (a) of this subsection shall be subject to disapproval b y the commissioner at any time if the form is found to: 1. Violate any provision of this chapter; 2. Contain or incorporate by reference any inconsistent, ambiguous, or misleading clauses; or 3. Contain any title, heading, or other indication of its provisions which is: a. Misleading; or b. Printed in a size of typeface or manner of reproduction so as to be substantially illegible. (d) A contract between a public adjuster and an insured that was executed on a form that was prefiled with and approved by the commissioner under paragraph (a) of this subsection prior to a disapproval of the form under paragraph (c)2. or 3. of this subsection shall be enforceable to the extent allowed by: 1. Ordinary principles of contract; and 2. Any applicable state or federal laws implicated by the contract. (2) A public adjuster shall ensure that all contracts between the pu blic adjuster and an insured for services are in writing and contain the following: (a) The legible full name of the adjuster signing the contract, as specified in the department's licensing records; (b) The adjuster's permanent home state business address and phone number; (c) The license number issued to the adjuster by the department; (d) A title of "Public Adjuster Contract"; (e) The insured's full name, street address, insurer name, and policy number, if known or upon notification; (f) A description of the loss or damage and its location, if applicable; (g) A description of services to be provided to the insured; (h) The signatures of the adjuster and the insured; (i) The date the contract was signed by: 1. The adjuster; and 2. The insured; (j) Attestation language stating that the adjuster has a letter of credit or a surety bond as required by KRS 304.9 -430(3); (k) The full salary, fee, commission, compensation, or other consideration the adjuster is to receive for services, including but not limited to : 1. If the compensation is based on a percentage of the insurance settlement, the exact percentage, which shall be in accordance with KRS 304.9 - 4333; 2. The initial expenses to be reimbursed to the adjuster from the proceeds of the claim payment, specified by type, with dollar estimates; and 3. Any additional expenses, if first approved by the insured; (l) A statement that the adjuster shall not: 1. Give legal advice; or 2. Act on behalf of or aid any person in negotiating or settling a claim relating to bodily injury, death, or noneconomic damages; (m) The process for rescinding the contract, including the date by which rescission of the contract by the adjuster or the insur ed may occur; (n) A statement that: 1. Clearly states in substance: "Complaints regarding this contract or regarding the public adjuster may be filed with the consumer protection division of the Kentucky Department of Insurance."; and 2. Contains the physical address, email address, and phone number for the department; and (o) A statement that clearly states in substance: "Any legal action arising out of or related to this contract shall be heard only in the courts of, and governed only by the laws of, the Commonwealth of Kentucky." (3) (a) Compensation provisions in a contract between a public adjuster and an insured shall not be redacted in any copy of the contract provided to the commissioner. (b) A redaction prohibited under paragraph (a) of this subsect ion shall constitute an omission of material fact in violation of KRS 304.9 -440 and 304.12-230. (4) A contract between a public adjuster and an insured shall not contain any contract term that: (a) Allows the adjuster's percentage rate to be collected when money is due from an insurer, but not paid; (b) Allows the adjuster to collect the entire fee from the first check issued by an insurer, rather than as a percentage of each check issued by an insurer; (c) Requires an insured to authorize an insurer to issue a check only in the name of the adjuster; (d) Imposes collection costs or late fees; (e) Allows the adjuster's rate of compensation to be increased based on the fact that a claim is litigated; or (f) Precludes the adjuster from pursuing civil remedies. (5) Prior to the signing of a contract with an insured, a public adjuster shall provide the insured with a separate disclosure document regarding the claim process that states the following: "Property insurance policies obligate the insured to present a c laim to his or her insurance company for consideration. Three (3) types of adjusters may be involved in the claim process as follows: 1. "Staff adjuster" means an insurance adjuster who is an employee of an insurance company, who represents the interest of the insurance company, and who is paid by the insurance company. A staff adjuster shall not charge a fee to the insured; 2. "Independent adjuster" means an insurance adjuster who is hired on a contract basis by an insurance company to represent the insura nce company's interest in the settlement of the claims and who is paid by the insurance company. An independent adjuster shall not charge a fee to the insured; and 3. "Public adjuster" means an insurance adjuster who does not work for any insurance company. A public adjuster works for the insured to assist in the preparation, presentation, and settlement of the claim, and the insured hires a public adjuster by signing a contract agreeing to pay him or her a fee or commission based on a percentage of the set tlement or another method of payment. The insured is not required to hire a public adjuster to help the insured meet his or her obligations under the policy, but has the right to hire a public adjuster. The insured has the right to initiate direct communi cations with the insured's attorney, the insurer, the insurer's adjuster, the insurer's attorney, and any other person regarding the settlement of the insured's claim. The public adjuster shall not be a representative or employee of the insurer. The salary , fee, commission, or other consideration paid to the public adjuster is the obligation of the insured, not the insurer." (6) (a) A contract between a public adjuster and an insured shall be executed in duplicate to provide an original physical copy of the contract to: 1. The public adjuster; and 2. The insured. (b) A public adjuster's original contract shall be available at all times for inspection by the commissioner without notice. (7) Within seventy-two (72) hours of entering into a contract with an insured, a public adjuster shall provide the insurer: (a) A notification letter that: 1. Has been signed by the insured; and 2. Authorizes the public adjuster to render advice and assistance to the insured in accordance with this subtitle; and (b) A physical copy of the contract. (8) (a) The insured shall have the right to rescind a contract with a public adjuster within: 1. Except as provided in subparagraph 2. of this paragraph, five (5) business days after the date the physical copy of the contract was provided to the insured; or 2. If the contract was entered into based on events that are the subject of a state of emergency that was declared by the Governor, a local chief executive officer, or a local government under KRS 39A.100 or 39B.070, as applicable, ten (10) days after the contract is executed. (b) A rescission of a public adjuster contract shall be: 1. In writing; 2. Mailed or delivered to the public adjuster at the address in the contract; and 3. Postmarked or received within the applicable rescission period. (9) If an insured exercises the right to rescind a contract under subsection (8) of this section, anything of value given by the insured under the contract to the public adjuster shall be returned to the insured within fifteen (15) business days following receipt by the public adjuster of the rescission notice. (10) Any requirement to provide a physical copy of a contract under this section shall not be satisfied by providing an electronic copy of the contract. (11) A contract between a public adjuster and an insured that is in violation of any provision of this chapter shall not be enforceable. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 141, sec. 4, effective July 15, 2026. -- Amended 2023 Ky. Acts ch. 11, sec. 2, effective June 29, 2023. -- Created 2010 Ky. Acts ch. 83, sec. 12, effective July 15, 2010. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 141, sec. 14, provides that the amendments to this statute in that Act apply to contracts entered into on or after July 15, 2026. Legislative Research Commission Note (7/15/2010). References to the "Office of Insurance" and the "executive director" of insurance in subsections (1) and (7) of this section, as created by 2010 Ky. Acts ch. 83, sec. 12, have been changed in codification to the "Department of Insurance" and the "commissioner" of insurance, respectively, 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. These changes were made by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.

KRS 304.9-434 Repealed, 2000

304.9-434. Repealed, 2000 Catchline at repeal: Exemption from written examination. History: Repealed 2000 Ky. Acts ch. 393, sec. 48, effective July 14, 2000. -- Created 1984 Ky. Acts ch. 262, sec. 5, effective April 1, 1985.

KRS 304.9-435 Records to be maintained by public adjusters

304.9-435. Records to be maintained by public adjusters (1) A public adjuster shall maintain a complete record of each transaction as a public adjuster. The records required by this section shall include the following: (a) The name of the insured; (b) The date, location, and amount of the loss; (c) A copy of the contract between the public adjuster and insured; (d) The name of the insurer and the amount, expiration date, and number of each policy carried with respect to the loss; (e) An itemized statement of the insured's recoveries; (f) An itemized statement of all compensation received by the public adjuster, from any source whatsoever, in connection with the loss; (g) A register of all money received, deposited, disbursed, or insured, including fees transfers and disbursements from a trust account and all transactions concerning all interest-bearing accounts; (h) The name of the public adjuster who executed the contract; (i) The name of the attorney representing the insured, if applicable, and the name of the claims representatives of the insurer; and (j) Evidence of financial responsibility, in a format prescribed by the commissioner. (2) An independent adjuster shall maintain a copy of each contract between the independent adjuster and the insurer or self-insurer and comply with the record retention policy as agreed to in the contract. (3) Records shall be maintained by a public adjuster for at least five (5) years after the termination of a transaction with an insured and shall be open to examination by the commissioner at all times. Effective: July 15, 2010 History: Created 2010 Ky. Acts ch. 83, sec. 13, effective July 15, 2010. Legislative Research Commission Note (7/15/2010). References to the "executive director" of insurance in subsections (1) and (3) of this section, as created by 2010 Ky. Acts ch. 83, sec. 13, have 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. These changes were made by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.

KRS 304.9-436 Authorized insurer prohibited from doing business in Kentucky with an unlicensed person

304.9-436. Authorized insurer prohibited from doing business in Kentucky with an unlicensed person An authorized insurer shall not do business in Kentucky with a person that is unlicensed in violation of this subtitle. Effective: July 15, 2026 History: Repealed and reenacted 2026 Ky. Acts ch. 45, sec. 21, effective July 15, 2026; and amended ch. 141, sec. 10, effective April 13, 2026. -- Amended 2019 Ky. Acts ch. 8, sec. 3, effective June 27, 2019. -- Amended 2017 Ky. Acts ch. 34, sec. 6, effective June 29, 2017. -- Amended 2010 Ky. Acts ch. 83, sec. 15, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 16, effective June 20, 2005. -- Created 1984 Ky. Acts ch. 262, sec. 6, effective April 1, 1985. Legislative Research Commission Note (7/15/2026). This statute was repealed and reenacted with all new language in 2026 Ky. Acts ch. 45, sec. 21 and amended in 2026 Ky. Acts ch.141, sec. 10. The repeal and reenactment prevails over the amendment under KRS 446.260.

KRS 304.9-440 Probation, suspension, revocation, and refusal of license -- Grounds -- Penalty

304.9-440. Probation, suspension, revocation, and refusal of license -- Grounds -- Penalty (1) The commissioner may place on probation, suspend, or may impose conditions upon the continuance of a license for not more than twenty -four (24) months, revoke, or refuse to issue or renew any license issued under this subtitle or any surplus lines broker, life settlement broker, or life settlement provider license, or may levy a civil penalty in accordance with KRS 304.99 -020, or any combination of actions for any one (1) or more of the following causes: (a) Providing incorrect, misleading, incomplete, or materially untrue information in a license application; (b) Violating any insurance laws, or violating any administrative regulations, subpoena, or order of the commissioner or of another state's insurance commissioner; (c) Obtaining or attempting to obtain a license through misrepresentation or fraud; (d) Improperly withholding, misappropriating, or converting any moneys or properties received in the course of doing insurance or the business of life settlements; (e) Intentionally misrepresenting the terms of an actual or proposed insurance contract, life settlement contract, or application for insurance; (f) Having been convicted of or having pled guilty or nolo contendere to any felony; (g) Having admitted or been found to have committed any unfair insurance trade practice, insurance fraud, or fraudulent life settlement act; (h) Using fraudulent, coercive, or dishonest practices; or demonstrating incompetence, untrustworthiness, or financial irresponsibility; or being a source of injury or loss to the public in the conduct of business in this state or elsewhere; (i) Having an insurance license, life settlement license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory; (j) Surrendering or otherwise terminating any license issued by this state or by any other jurisdiction, under threat of disciplinary action, denial, or refusal of the issuance of or renewal of any other license issued by this state or by any other jurisdiction; or revocation or suspension of any other license held by the licensee issued by this state or by any other jurisdiction; (k) Forging another's name to an application for insurance, to any other document related to an insurance transaction, or to any doc ument related to the business of life settlements; (l) Cheating, including improperly using notes or any other reference material to complete an examination for license; (m) Knowingly accepting insurance or life settlement business from an individual or business entity who is not licensed, but who is required to be licensed under this subtitle; (n) Failing to comply with an administrative or court order imposing a child support obligation; (o) Failing to pay state income tax or to comply with any administrative or court order directing payment of state income tax; (p) Having been convicted of a misdemeanor for which restitution is ordered in excess of three hundred dollars ($300), or of any misdemeanor involving dishonesty, breach of trust, or moral turpitude; (q) No longer meeting the requirements for initial licensure; (r) If a life settlement provider, demonstrating a pattern of unreasonable payments to owners or failing to honor contractual obligations set out in a life settlement contract; (s) Entering into any life settlement contract or using any form that has not been approved pursuant to Subtitle 15 of this chapter; (t) If a licensee, having assigned, transferred, or pledged a policy subject to a life settlement contract to a person other than a life settlement provider licensed in this state, an accredited investor or qualified institutional buyer as defined, respectively, in Regulation D, Rule 501 or Rule 144a of the Federal Securities Act of 1933, as amended, a financing entity, a special purpose en tity, or a related provider trust; or (u) Any other cause for which issuance of the license could have been refused, had it then existed and been known to the commissioner. (2) (a) For any public adjuster or apprentice adjuster supervised by a public adjus ter under KRS 304.9-432, the commissioner shall deny, suspend, or revoke the adjuster's or apprentice adjuster's license or impose a fine not to exceed five thousand dollars ($5,000) per act, or both, for any of the following causes: 1. Violating any provision of this chapter; 2. Violating any administrative regulation or order of the commissioner; 3. Receiving payment or anything of value as a result of an unfair or deceptive practice; 4. Receiving or accepting any fee, kickback, or other thing of value pursuant to any agreement or understanding, oral or otherwise, from anyone other than an insured; 5. Entering into a split-fee arrangement with another person who is not a public adjuster; or 6. Being otherwise paid or accepting payment for public adjuster s ervices that have not been performed. (b) The sanctions and penalties under this subsection shall be in addition to any other remedies, penalties, or sanctions available to the commissioner against a public adjuster or an apprentice adjuster supervised by a public adjuster under KRS 304.9-432 under this section or any other law. (3) The license of a business entity may be suspended, revoked, or refused for any cause relating to an individual designated in or registered under the license if the commissioner finds that: (a) An individual licensee's violation was known or should have been known by one (1) or more of the partners, officers, or managers acting on behalf of the business entity; and (b) The violation was not reported to the department nor corrective action taken. (4) (a) The license of a pharmacy benefit manager may, in the discretion of the commissioner, be suspended, revoked, or refused for any cause enumerated in subsection (1) of this section, and for violations of KRS 205.647, 304.9-053, 304.9-054, 304.9-055, and 304.17A-162. (b) The pharmacy benefit manager shall also be subject to the same civil penalties under KRS 304.99-020 as an insurer. (5) The applicant or licensee may make written request for a hearing in accordance with KRS 304.2-310. (6) The commissioner shall retain the authority to enforce the provisions and penalties of this chapter against any individual or business entity who is under investigation for or charged with a violation of this chapter, even if the individual's or business entity's license has been surrendered or has lapsed by operation of law. (7) The commissioner may suspend, revoke, or refuse to renew the license of a licensed insurance agent operating as a life settlement broker, pursuant to KRS 304.15-700, if the commissioner finds that such insurance agent has violated the provisions of KRS 304.15-700 to 304.15-725. (8) If the commissioner denies a license application or suspends, revokes, or refuses to renew the license of a life settlement provider or life settlement broker, or suspends, revokes, or refuses to renew the license of a licensed life insurance agent operating as a life settlement broker pursuant to KRS 304.15-700, the commissioner shall comply with the provisions of this section and KRS Chapter 13B. (9) The sanctions and penalties applicable to licenses and licensees under subsection (1) of this section shall also be applicable to registrations and registrants under KRS 304.52-030(3). Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 141, sec. 8, effective July 15, 2026. -- Amended 2023 Ky. Acts ch. 11, sec. 6, effective June 29, 2023. -- Amended 2021 Ky. Acts ch. 36, sec. 14, effective June 29, 2021. -- Amended 2018 Ky. Acts ch. 157, sec. 2, effective July 1, 2018. -- Amended 2010 Ky. Acts ch. 24, sec. 1074, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 32, sec. 19, effective July 15, 2008. -- Amended 2005 Ky. Acts ch. 58, sec. 5, effective June 20, 2005; and ch. 143, sec. 17, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 36, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 34, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 213, sec. 4, effective July 15, 1998. -- Amended 1982 Ky. Acts ch. 123, sec. 6, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 44, effective June 18, 1970. Legislative Research Commission Note (7/15/2008). 2008 Ky. Acts ch. 32 intended to change all existing references in the KRS from "viatical settlements" to "life settlements" and from "viator" to "owner." References to "viatical settlements" and to "viator" in this section were overlooked during the bill drafting process. The Reviser of Statutes has made these changes upon the authority of KRS 7.136(1)(h).

KRS 304.9-450 Procedure following suspension, revocation, nonrenewal, or denial of license

304.9-450. Procedure following suspension, revocation, nonrenewal, or denial of license (1) Upon suspension or revocation of any license the commissioner shall notify the licensee either in person or by mail addressed to the licensee at his or her address last of record with the commissioner. Notice by mail shall be deemed effectuated when so mailed. The commissioner shall give like notice to the insurer represented by the agent, in the case of an agent's license. (2) The commissioner shall not again issue a license under this code to or as to any individual or business entity whose license has been revoked, until after expiration of one (1) year and thereafter not until the individual or business entity again qualifies in accordance with the applicable provisions of this code. An individual or business entity whose license has been revoked twice shall not again be eligible for any license under this code. (3) If the license of a business entity is suspended or revoked, no member, officer, or director of the business entity shall be licensed or be designated in or as to any license to exercise the powers thereof during the period of the suspension or revocation, unless the commissioner determines upon substantial evidence that the member, officer, or director was not personally at fault and did not acquiesce in the matter on account of which the license was suspended or revoked. (4) In the event that the action by the commissioner is to nonrenew or to deny an application for a license, the commissioner shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the denial or nonrenewal of the applicant's or licensee's license. The applicant or licensee may make written demand upon the commissioner in accordance with KRS 304.2-310. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1075, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 393, sec. 35, effective July 14, 2000. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 45, effective June 18, 1970.

KRS 304.9-455 Repealed, 2000

304.9-455. Repealed, 2000 Catchline at repeal: Licensed person to notify commissioner of licensure disciplinary action. History: Repealed 2000 Ky. Acts ch. 393, sec. 48, effective July 14, 2000; amended 2000 Ky. Acts ch. 393, sec. 36, effective July 14, 2000. -- Created 1998 Ky. Acts ch. 213, sec. 5, effective July 15, 1998. Legislative Research Commission Note (7/14/00). Under KRS 446.260, the repeal of this section in 2000 Ky. Acts ch. 393, sec. 48, prevails over its amendment in 2000 Ky. Acts ch. 393, sec. 36.

KRS 304.9-460 Repealed, 2019

304.9-460. Repealed, 2019 Catchline at repeal: Return of license to commissioner. History: Repealed 2019 Ky. Acts ch. 166, sec. 5, effective June 27, 2019. -- Amended 2010 Ky. Acts ch. 24, sec. 1076, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 46, effective June 18, 1970.

KRS 304.9-465 Denial or suspension of license or appointment -- Conditional license -- Hearing

304.9-465. Denial or suspension of license or appointment -- Conditional license -- Hearing (1) For the protection of the people of Kentucky, the commissioner may by order deny, suspend, or place conditions upon any license subject to the provisions of this subtitle. (2) An order denying a license or appointment shall be based upon the application and any other information pertaining to the applicant available to the department. (3) One (1) or more of the following circumstances shall be considered for an order suspending a license: (a) The licensee's indictment for crime involving dishonesty, breach of trust, a violation of Subtitle 47 of this chapter, or a violation of 18 U.S.C. sec. 1033; (b) Sworn complaints to the department against the licensee showing clear and convincing evidence of a violation of KRS 304.9-400 totaling in the aggregate three hundred dollars ($300) or more; (c) The suspension or revocation of any other professional license held by the licensee in Kentucky or any other jurisdiction. (4) The commissioner may place conditions upon any license for any reason set forth in subsection (3) of this section. (5) Any person aggrieved by an order of the commissioner under this section may file an application for an emergency hearing pursuant to KRS 13B.125 within sixty (60) days of the date of the order. The department shall conduct the hearing within ten (10) working days of the request for a hearing, and within five (5) working days of the completion of the hearing the agency or hearing officer shall render a written decision affirming, modifying, or revoking the emergency order. The emergency order shall be affirmed if there is substantial evidence of a violation of law that constitutes an immediate danger to the public health, safety, or welfare. The commissioner shall participate in an expedited hearing at the applicant's written request. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1077, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 18, effective June 20, 2005. -- Created 2000 Ky. Acts ch. 492, sec. 4, effective July 14, 2000.

KRS 304.9-467 Notification of surrender or termination of license -- Report of administrative action -- Notification of service of complaint or indictment -- Documentation of resolution

304.9-467. Notification of surrender or termination of license -- Report of administrative action -- Notification of service of complaint or indictment -- Documentation of resolution (1) An individual or business entity holding a license issued under this subtitle or holding a license as a surplus lines broker, life settlement broker, or life settlement provider shall notify the commissioner in writing immediately if the licensee's license to conduct insurance, securities, real estate, auctioneer, investment, financial, or financial planning business of any kind in this state or elsewhere is surrendered or terminated under threat of disciplinary action, refused, suspended, revoked, or renewal of continuance is denied. (2) A licensee shall report to the commissioner any administrative action taken against the licensee in another jurisdiction or by another governmental agency in Kentucky within thirty (30) days of the final disposition of the matter. This report shall include: (a) A written statement identifying the type of license and explaining the circumstances of each incident; (b) A copy of the notice of hearing or other document that states the charges and allegations; and (c) A copy of the official document which demonstrates the resolution of the charges or any final judgment. (3) Within thirty (30) days of service upon the licensee of any criminal complaint, information, or indictment in any jurisdiction, the licensee shall submit to the commissioner the following: (a) A written statement explaining the circumstances of each incident; (b) A copy of the charging document; and (c) A copy of the official document which demonstrates the resolution of the charges or any final judgment. (4) If the charges alleged in the criminal complaint, information, or indictment have not been finally resolved within the thirty (30) day period following service of the criminal complaint, information, or indictment, the licensee shall, within thirty (30) days following the resolution of the charges, submit to the commissioner a copy of the official document which demonstrates the resolution of the charges or any final judgment. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1078, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 32, sec. 20, effective July 15, 2008. -- Created 2002 Ky. Acts ch. 273, sec. 37, effective July 15, 2002.

KRS 304.9-470 Prohibited practices in replacement or repair of automobile glass -- Penalties

304.9-470. Prohibited practices in replacement or repair of automobile glass -- Penalties (1) An insurer, its agents, or adjusters shall not: (a) Require any policyholder to use a particular company or location for the provision of automobile glass replacement or glass repair services or glass products which shall be replaced, repaired, or provided in whole or in part under the terms of an insurance policy; (b) Engage in any act or practice of intimidation, coercion, or threat against any policyholder to use a particular company or location to provide automobile glass replacement or repair services or products insured in whole or in part under the terms of an insurance policy. (2) No person selling or engaged in the sale or installation of replacement glass shall advertise, promise to provide, or offer any coupon, credit, or rebate to pay all or part of an insurance deductible under a property and casualty insurance policy. (3) This section shall not be construed to require an insurer to pay more for automobile glass replacement, or glass repair services or glass products than the lowest price available in the market area provided by a qualified, competent glass repair company. (4) Violation of this section shall be subject to penalties as provided in KRS 304.99- 020. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 410, sec. 1, effective July 14, 1992.

KRS 304.9-475 Repealed, 2021

304.9-475. Repealed, 2021 Catchline at repeal: Travel insurance offered by travel retailer on behalf of limited lines travel insurance producer -- Requirements. History: Repealed 2021 Ky. Acts ch. 36, sec. 15, effective June 29, 2021. -- Created 2012 Ky. Acts ch. 92, sec. 2, effective July 12, 2012.

KRS 304.9-480 Repealed, 2005

304.9-480. Repealed, 2005 Catchline at repeal: Definitions for KRS 304.9-480 and 304.9-485. History: Repealed 2005 Ky. Acts ch. 143, sec. 25, effective June 20, 2005. -- Created 2000 Ky. Acts ch. 194, sec. 1, effective July 14, 2000.

KRS 304.9-485 Repealed, 2010

304.9-485. Repealed, 2010 Catchline at repeal: Licensing of specialty credit insurance producers -- Authorization of employees or representatives -- Rights and limitations. History: Amended 2010 Ky. Acts. ch. 24, sec. 1079, effective July 15, 2010; and repealed 2010 Ky. Acts ch. 83, sec. 21, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 194, sec. 2, effective July 14, 2000. Legislative Research Commission Note (7/15/2010). Under KRS 446.260, the repeal of this section in 2010 Ky. Acts ch. 83 prevails over its amendment in 2010 Ky. Acts ch. 24.

KRS 304.9-490 Repealed, 2002

304.9-490. Repealed, 2002 Catchline at repeal: Banks exempt from KRS 304.9-480 and 304.9-485. History: Repealed 2002 Ky. Acts ch. 273, sec. 55, effective July 15, 2002. -- Created 2000 Ky. Acts ch. 194, sec. 3, effective July 14, 2000.

KRS 304.9-495 Definitions for KRS 304.9-495 to 304.9-497

304.9-495. Definitions for KRS 304.9-495 to 304.9-497 For the purposes of KRS 304.9-495 to 304.9-497: (1) "Limited lines self-service storage space insurance producer" means a: (a) Licensed managing general agent, which has the same meaning as "managing general agent" in KRS 304.9-085(1); (b) Licensed agent, which as the same meaning as "agent" in KRS 304.9-020; or (c) Limited lines self-service storage space insurance agent licensed pursuant to KRS 304.9-230; designated by the insurer as the self-service storage space insurance supervising entity; (2) "Occupant" has the same meaning as in KRS 359.200; (3) "Offering and disseminating" means providing general information relating to the self-service storage space insurance offered, including a description of the coverage and price, receiving applications and premiums, and performing other activities permitted by the department which do not require a license; (4) "Operator" has the same meaning as in KRS 359.200; (5) "Personal property" has the same meaning as in KRS 359.200; (6) "Self-service storage facility" has the same meaning as in KRS 359.200; and (7) "Self-service storage space insurance" means insurance that provides primary coverage to an occupant of a self-service storage facility space for the loss of or damage to tangible personal property that is contained in a self-service storage space, but does not include a homeowner's policy, renter's insurance policy, a private passenger motor vehicle insurance policy, or an insurance policy that provides coverage similar to the insurance provided by this subsection. Effective: July 15, 2014 History: Created 2014 Ky. Acts ch. 59, sec. 2, effective July 15, 2014. Legislative Research Commission Note (71/1514). In codification, the Reviser of Statutes has altered the numbering within this statute from the way it appeared in 2014 Ky. Acts ch. 59, sec. 2, under the authority of KRS 7.136(1)(c).

KRS 304.9-496 Operator of self-service storage facility may offer and sell insurance on behalf of a limited lines self-service storage space insurance producer -- Conditions -- Producer is responsible for operator's acts

304.9-496. Operator of self-service storage facility may offer and sell insurance on behalf of a limited lines self-service storage space insurance producer -- Conditions -- Producer is responsible for operator's acts (1) An operator of a self-service storage facility may offer and disseminate insurance for personal property located within a leased space at a self-service storage facility on behalf of and under the control of a limited lines self-service storage space insurance producer only if the limited lines self-service storage space insurance producer complies with the following: (a) The limited lines self-service storage space insurance producer is clearly identified, including the entity's name and contact information, on marketing materials and fulfillment packages distributed by self-service storage facility operators to customers; (b) At the time of licensure, the limited lines self-service storage space insurance producer shall establish and maintain a register on a form prescribed by the commissioner of each facility that offers self-service storage space insurance on the limited lines self-service storage space insurance producer's behalf. The register shall be maintained and updated annually by the limited lines self- service storage space insurance producer and shall include the name, address, contact information, and Federal Employment Identification Number of the operator and the name, address, and contact information of any officer or person employed by the operator who directs or controls the self-service storage facility operations. The limited lines self-service storage space insurance producer shall submit the register upon request from the commissioner. The limited lines self-service storage space insurance producer shall also certify that it complies with 18 U.S.C. sec. 1033; (c) The limited lines self-service storage space insurance producer has designated one (1) of its employees as a licensed individual responsible for the business entity's compliance with KRS 304.9-495 to 304.9-497 and the insurance laws, rules, and administrative regulations of the state; and (d) The limited lines self-service storage space insurance producer requires each employee of the operator whose duties include offering and disseminating insurance to receive a program of instruction or training, which may be subject to review by the commissioner. The training material shall, at a minimum, contain instructions on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers. (2) Notwithstanding KRS 304.9-421 and 304.9-425, a self-service storage facility operator, including its employees, whose activities relating to insurance are limited to offering and disseminating insurance on behalf of and under the direction of a limited lines self-service storage space insurance producer meeting the conditions as set forth in this section, may offer and disseminate insurance. (3) As the insurer's designee, the limited lines self-service storage space insurance producer is responsible for the acts of the self-service storage space operator. Effective: July 15, 2014 History: Created 2014 Ky. Acts ch. 59, sec. 3, effective July 15, 2014.

KRS 304.9-497 Required written consumer protection disclosures relating to self-service storage space insurance

304.9-497. Required written consumer protection disclosures relating to self-service storage space insurance Self-service storage space insurance shall not be transacted under this subtitle at any location unless the following consumer protection disclosures are made in writing that meets the readability standards set forth in KRS 304.14-440 and the administrative regulations promulgated thereunder prior to the sale of self-service storage space insurance: (1) A clear and concise description of the material terms and conditions of the coverage, including a description of exclusions; (2) A description of the process for filing a claim and a toll-free telephone number for reporting a claim; (3) A statement that the coverage offered by the self-service storage space insurance rental agreement may be a duplication of coverage already provided by an occupant's other source of property coverage; (4) A statement that if insurance is required as a condition of an operator's rental agreement with an occupant, the requirement may be satisfied by the customer's: (a) Purchase of self-service storage space insurance that is offered or disseminated by the self-storage facility; or (b) Presentation to the self-storage facility of evidence of other applicable insurance coverage; (5) The name and address of the underwriting insurer; (6) A separate itemization of all costs for the self-service storage space insurance; (7) Confirmation that the insurer underwriting coverage is authorized to transact insurance in Kentucky; and (8) A statement that the self-service storage space insurance is primary coverage over any other coverage which may be made available to the occupant covering the same loss. Effective: July 15, 2014 History: Created 2014 Ky. Acts ch. 59, sec. 4, effective July 15, 2014.

KRS 304.9-501 Repealed, 2010

304.9-501. Repealed, 2010 Catchline at repeal: Definitions for KRS 304.9-501 to 304.9-513. History: Repealed 2010 Ky. Acts ch. 83, sec. 21, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 380, sec. 22, effective July 14, 2000.

KRS 304.9-503 Repealed, 2010

304.9-503. Repealed, 2010 Catchline at repeal: Types of insurance that rental vehicle agent may handle at company office -- Coverage is primary over other coverage. History: Amended 2010 Ky. Acts ch. 24, sec. 1080, effective July 15, 2010; and repealed 2010 Ky. Acts ch. 83, sec. 21, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 380, sec. 23, effective July 14, 2000. Legislative Research Commission Note (7/15/2010). Under KRS 446.260, the repeal of this section in 2010 Ky. Acts ch. 83 prevails over its amendment in 2010 Ky. Acts ch. 24.

KRS 304.9-505 License for business entity to act as rental vehicle agent -- Registration fee and licensed managing employee for each business location -- Application and qualifications for license

304.9-505. License for business entity to act as rental vehicle agent -- Registration fee and licensed managing employee for each business location -- Application and qualifications for license (1) A license issued under this section shall permit rental vehicle insurance sales by the license holder provided the sales are conducted in accordance with the provisions of KRS 304.9-507. (2) A business entity licensee shall register with the commissioner each separate business location where its employees sell, solicit, or negotiate insurance and may pay a location registration fee for each separate location. (3) A rental vehicle agent managing employee with an active license issued by the commissioner shall oversee employees at each assigned location. (4) The commissioner may issue to a business entity qualified under this section a license to act as a rental vehicle agent. (5) For a license to be issued under this section, the business entity shall submit to the commissioner all of the following: (a) A written application, signed by the authorized representative of the business entity, on a form prescribed by the commissioner, that contains the information prescribed by the commissioner; (b) Satisfaction of all general agent licensing requirements as prescribed in KRS 304.9-105(1)(c) and (2); (c) The application fee, appointment fee, and location registration fee as provided in KRS 304.4-010; (d) A business entity applicant shall submit a list of physical locations where activities authorized by the rental vehicle agent license will be conducted; and (e) A business entity applicant shall ensure that each proposed licensed managing employee has successfully completed a prelicensing course of study and successfully passed a rental vehicle examination approved by the commissioner. (6) The commissioner may require any documents reasonably necessary to verify the information contained in the application submitted in accordance with subsection (5) of this section. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1081, effective July 15, 2010; and ch. 83, sec. 16, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 380, sec. 24, effective July 14, 2000. 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. 83, sec. 16, 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 83. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 83, which was last enacted by the General Assembly, prevails under KRS 446.250.

KRS 304.9-507 Conditions under which license authorizes employee or representative to transact business -- Licensee may not hold self out as insurance agent without applicable license

304.9-507. Conditions under which license authorizes employee or representative to transact business -- Licensee may not hold self out as insurance agent without applicable license (1) A license issued to a business entity under KRS 304.9-505 shall authorize an employee or representative of the business entity licensee to sell, solicit, or negotiate rental vehicle insurance without being licensed, registered, or otherwise individually identified, if all of the following are true: (a) The employee, representative, or managing employee operates with permission from the business entity licensee; (b) The business entity licensee assumes responsibility for the insurance activities of its unlicensed employees, representatives, or managing employees; (c) The employee or representative operates under the supervision of a managing employee who is licensed as a rental vehicle agent and who shall be available at all times for consultation for and adequate supervision of the business locations registered with the commissioner during the sale, solicitation, or negotiation of rental vehicle insurance. However, a managing employee need not be present at each business location registered with the commissioner; (d) The business entity maintains an adequate number of managing employees available for consultation and supervision for the employees or representatives offering insurance products; (e) The employee, representative, or managing employee has been instructed by the rental vehicle agent with respect to the consumer disclosures that are required under KRS 304.9-509 prior to the sale of the rental vehicle insurance; (f) The employee or representative is not primarily compensated based on the amount of insurance sold by the employee or representative; and (g) The business location is registered with the commissioner. (2) A licensee shall not advertise, represent, or otherwise hold out the licensee or any employee or representative of the licensee as a licensed insurance agent under another section of this subtitle, unless the entity or individual actually holds the applicable license. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch 24, sec. 1082, effective July 15, 2010; and ch. 83, sec. 17, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 380, sec. 25, effective July 14, 2000. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 83, which do not appear to be in conflict and have been codified together.

KRS 304.9-509 Consumer protection disclosures to be included with rental vehicle agreement

304.9-509. Consumer protection disclosures to be included with rental vehicle agreement Rental vehicle insurance shall not be transacted under this subtitle at any location unless the following consumer protection disclosures are made in writing that meets the readability standards set forth in KRS 304.14-440 and the regulations promulgated thereunder prior to the sale of rental vehicle insurance and are included with the rental vehicle agreement: (1) A clear and concise description of the material terms and conditions of the coverage, including a description of exclusions; (2) A description of the process for filing a claim and a toll-free telephone number for reporting a claim; (3) A statement that the coverage offered by the rental vehicle agent may be a duplication of coverage already provided by the renter's personal automobile insurance policy or by another source of coverage; (4) A statement that the renter is not required to purchase any insurance from the rental vehicle company in order to rent a vehicle. However, the rental vehicle company may refuse to rent a vehicle to an uninsured driver; (5) The name and address of the underwriting insurer; (6) A separate itemization of all costs for the rental vehicle insurance; (7) Confirmation that the insurer underwriting coverage is authorized to transact insurance in Kentucky; and (8) A statement that the rental vehicle insurance is primary coverage over any other coverage which may be available to the renter or authorized driver covering the same loss. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 83, sec. 18, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 380, sec. 26, effective July 14, 2000.

KRS 304.9-511 Rental vehicle agent may not handle insurance that is not sold in conjunction with rental vehicle transaction

304.9-511. Rental vehicle agent may not handle insurance that is not sold in conjunction with rental vehicle transaction A rental vehicle agent who is licensed in accordance with this subtitle shall not sell, solicit, or negotiate insurance that is not sold in conjunction with a rental vehicle transaction. Effective: July 14, 2000 History: Created 2000 Ky. Acts ch. 380, sec. 27, effective July 14, 2000.

KRS 304.9-513 Repealed, 2010

304.9-513. Repealed, 2010 Catchline at repeal: Penalties -- Educational materials to be provided to executive director -- Commissions and other compensation -- Renewal of licenses -- Administrative regulations. History: Amended Ky. Acts ch. 24, sec. 1083, effective July 15, 2010; and repealed 2010 Ky. Acts ch. 83, sec. 21, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 380, sec. 28, effective July 14, 2000. Legislative Research Commission Note (7/15/2010). Under KRS 446.260, the repeal of this section in 2010 Ky. Acts ch. 83 prevails over its amendment in 2010 Ky. Acts ch. 24.

KRS 304.9-700 Definitions for KRS 304.9-700 to 304.9-759

304.9-700. Definitions for KRS 304.9-700 to 304.9-759 As used in KRS 304.9-700 to 304.9-759, unless the context requires otherwise: (1) "Actuary" means a person who is a member in good standing of the American Academy of Actuaries; (2) "Controlling person" means any person, firm, association, or corporation who directly or indirectly has the power to direct or cause to be directed the management, control, or activities of the reinsurance intermediary; (3) "Insurer" means any person, firm, association, or corporation duly authorized by the commissioner pursuant to the applicable provisions of this chapter as an insurer; (4) "Licensed producer" means an agent, surplus lines broker, or reinsurance intermediary licensed pursuant to the applicable provisions of this chapter; (5) "Reinsurance intermediary" means a reinsurance intermediary broker or a reinsurance intermediary manager as defined in subsections (6) and (7) of this section; (6) "Reinsurance intermediary broker" means any person, other than an officer or employee of the ceding insurer, firm, association, or corporation who solicits, negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of the insurer; (7) "Reinsurance intermediary manager" means any person, firm, association, or corporation who has authority to bind or manages all or part of the assumed reinsurance business of a reinsurer (including the management of a separate division, department, or underwriting office) and acts as an agent for a reinsurer whether known as a reinsurance intermediary manager, manager, or by other similar term. However, the following persons shall not be considered a reinsurance intermediary manager with respect to the reinsurer for the purposes of KRS 304.9- 700 to 304.9-759: (a) An employee of the reinsurer; (b) A United States manager of the United States branch of an alien reinsurer; (c) An underwriting manager which, pursuant to contract, manages all the reinsurance operations of the reinsurer, is under common control with the reinsurer, subject to Subtitle 37 of this chapter, and whose compensation is not based on the volume of premiums written; or (d) The manager of a group, association, pool, or organization of insurers which engage in joint underwriting or joint reinsurance and who are subject to examination by the insurance regulatory official of the state in which the manager's principal business office is located; (8) "Reinsurer" means any person, firm, association, or corporation duly authorized in Kentucky pursuant to this chapter as an insurer with the authority to assume reinsurance; (9) "To be in violation" means that the reinsurance intermediary, insurer, or reinsurer for whom the reinsurance intermediary was acting failed to comply substantially with the provisions of KRS 304.9-700 to 304.9-759; and (10) "Qualified United States financial institution" means an institution that: (a) Is organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or any state thereof; (b) Is regulated, supervised, and examined by the United States government or state authorities having regulatory authority over banks and trust companies; and (c) Has been determined by either the commissioner, or the Securities Valuation Office of the National Association of Insurance Commissioners, to meet the standards of financial condition and standing considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1084, effective July 15, 2010. -- Created 1992 Ky. Acts ch. 155, sec. 1, effective July 14, 1992.

KRS 304.9-705 Reinsurance intermediary license required -- Exemption

304.9-705. Reinsurance intermediary license required -- Exemption (1) No individual or business entity shall act as a reinsurance intermediary broker in Kentucky if the reinsurance intermediary broker maintains an office either directly or as a director, officer, member, or employee of a business entity: (a) In Kentucky, unless the reinsurance intermediary broker is a licensed insurance producer in Kentucky and may sell reinsurance products under that insurance producer license; or (b) In another state, unless the reinsurance intermediary broker is a licensed insurance producer in Kentucky and may sell reinsurance products under that producer license, or is licensed in another state having a law substantially similar to KRS 304.9-700 to 304.9-759, or the reinsurance intermediary broker is licensed in Kentucky as a nonresident reinsurance intermediary. (2) No individual or business entity shall act as a reinsurance intermediary manager: (a) For a reinsurer domiciled in Kentucky, unless the reinsurance intermediary manager is a licensed insurance producer in Kentucky and may sell reinsurance products under that insurance producer license; (b) In Kentucky, if the reinsurance intermediary manager maintains an office, either directly or as a director, officer, member, or employee of a business entity in Kentucky, unless the reinsurance intermediary manager is a licensed insurance producer in Kentucky and may sell reinsurance products under that insurance producer license; or (c) In another state for a nondomestic insurer, unless the reinsurance intermediary manager is a licensed insurance producer in Kentucky and may sell reinsurance products under that insurance producer license, is licensed in another state having a law substantially similar to KRS 304.9-700 to 304.9- 759, or the person is licensed in Kentucky as a nonresident reinsurance intermediary. (3) The commissioner may issue a reinsurance intermediary license to any individual or business entity who has complied with the requirements of KRS 304.9-700 to 304.9-759 and who is financially responsible to exercise the license. The license issued to a business entity shall be exercised only by individuals designated with the commissioner as to the license in accordance with KRS 304.9-133. (4) The commissioner may refuse to issue a reinsurance intermediary license if, in his or her judgment, the applicant, anyone named on the application, or any member, principal, officer, or director of the applicant is not trustworthy or of good reputation, or that any controlling person of the applicant is not trustworthy to act as a reinsurance intermediary, or that any of the foregoing persons have given cause for revocation or suspension of the license, or has failed to comply with any prerequisite for the issuance of the license. (5) Licensed attorneys-at-law of Kentucky, when acting in their professional capacity as attorneys, shall be exempt from this section. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1085, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 273, sec. 38, effective July 15, 2002. -- Created 1992 Ky. Acts ch. 155, sec. 2, effective July 14, 1992.

KRS 304.9-710 Written authorization between reinsurance intermediary broker and an insurer

304.9-710. Written authorization between reinsurance intermediary broker and an insurer Transactions between a reinsurance intermediary broker and the insurer it represents in that capacity shall only be entered into pursuant to a written authorization specifying the responsibilities of each party. The authorization shall, at a minimum, contain provisions that: (1) The insurer may terminate the reinsurance intermediary broker's authority at any time; (2) The reinsurance intermediary broker shall render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by, or owing, to the reinsurance intermediary broker, and remit all funds due to the insurer within thirty (30) days of receipt; (3) All funds collected for the insurer's account shall be held by the reinsurance intermediary broker in a fiduciary capacity in a bank which is a qualified United States financial institution; (4) The reinsurance intermediary broker shall comply with KRS 304.9-715; (5) The reinsurance intermediary broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks; and (6) The reinsurance intermediary broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 155, sec. 3, effective July 14, 1992.

KRS 304.9-715 Records of transactions of reinsurance intermediary brokers

304.9-715. Records of transactions of reinsurance intermediary brokers (1) For at least ten (10) years after expiration of each contract of reinsurance transacted by the reinsurance intermediary broker, the reinsurance intermediary broker shall keep a complete record for each transaction showing: (a) The type of contract, limits, underwriting restrictions, classes or risks, and territory; (b) Period of coverage, including effective and expiration dates, cancellation provisions, and notice required for cancellation; (c) Reporting and settlement requirements of balances; (d) Rate used to compute the reinsurance premium; (e) Names and addresses of assuming reinsurers; (f) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary broker; (g) Related correspondence and memoranda; (h) Proof of placement; (i) Details regarding retrocessions handled by the reinsurance intermediary broker, including the identity of retrocessionaires and percentage of each contract assumed or ceded; (j) Financial records, including, but not limited to, premium and loss accounts; and (k) When the reinsurance intermediary broker procures a reinsurance contract on behalf of an authorized ceding insurer: 1. Directly from any assuming reinsurer written evidence that the assuming reinsurer has agreed to assume the risk; or 2. If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative; (2) The insurer shall have access to and the right to copy and audit all accounts and records maintained by the reinsurance intermediary broker related to its business in a form usable by the insurer. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 155, sec. 4, effective July 14, 1992.

KRS 304.9-720 Insurers required to engage services of only licensed reinsurance intermediary brokers

304.9-720. Insurers required to engage services of only licensed reinsurance intermediary brokers (1) An insurer shall not engage the services of any person, firm, association, or corporation to act as a reinsurance intermediary broker on its behalf unless the person is licensed as required by subsection (1) of KRS 304.9-705. (2) An insurer shall not employ an individual who is employed by a reinsurance intermediary broker with which it transacts business, unless the reinsurance intermediary broker is under common control with the insurer and is subject to Subtitle 37 of this chapter. (3) The insurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary broker with which it transacts business. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 155, sec. 5, effective July 14, 1992.

KRS 304.9-725 Minimum contract provisions

304.9-725. Minimum contract provisions Transactions between a reinsurance intermediary manager and the reinsurer it represents in such capacity shall only be entered into pursuant to a written contract, specifying the responsibilities of each party, which shall be approved by the reinsurer's board of directors. At least thirty (30) days before the reinsurer assumes or cedes business through such producer, a true copy of the contract approved by the reinsurer's board of directors shall be filed with the commissioner for approval. The contract shall, at a minimum, contain provisions that: (1) The reinsurer may terminate the contract for cause upon written notice to the reinsurance intermediary manager. The reinsurer may suspend the authority of the reinsurance intermediary manager to assume or cede business during the pendency of any dispute regarding the cause for termination; (2) The reinsurance intermediary manager shall render accounts to the reinsurer accurately detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by, or owing to, the reinsurance intermediary manager, and remit all funds due under the contract to the reinsurer on not less than a monthly basis; (3) All funds collected for the reinsurer's account shall be held by the reinsurance intermediary manager in a fiduciary capacity in a bank which is a qualified United States financial institution. The reinsurance intermediary manager may retain no more than three (3) months estimated claims payment and allocated loss adjustment expenses. The reinsurance intermediary manager shall maintain a separate bank account for each reinsurer that it represents; (4) For at least ten (10) years after expiration of each contract of reinsurance transacted by the reinsurance intermediary manager, the reinsurance intermediary manager shall keep a complete record for each transaction showing: (a) The type of contract, limits, underwriting restrictions, classes or risks, and territory; (b) Period of coverage, including effective and expiration dates, cancellation provisions and notice required for cancellation; and disposition of outstanding reserves on covered risks; (c) Reporting and settlement requirements of balances; (d) Rate used to compute the reinsurance premium; (e) Names and addresses of reinsurers; (f) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary manager; (g) Related correspondence and memoranda; (h) Proof of placement; (i) Details regarding retrocessions handled by the reinsurance intermediary manager, as permitted by KRS 304.9-735(4), including the identity of retrocessionaires and percentage of each contract assumed or ceded; (j) Financial records, including, but not limited to, premium and loss accounts; and (k) When the reinsurance intermediary manager places a reinsurance contract on behalf of a ceding insurer: 1. Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; and 2. If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative; (5) The reinsurer shall have access to and the right to copy all accounts and records maintained by the reinsurance intermediary manager related to its business in a form usable by the reinsurer; (6) The contract shall not be assigned in whole or in part by the reinsurance intermediary manager; (7) The reinsurance intermediary manager shall comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection, or cession of all risks; (8) Set forth the rates, terms, and purposes of commissions, charges, and other fees which the reinsurance intermediary manager may levy against the reinsurer; (9) If the contract permits the reinsurance intermediary manager to settle claims on behalf of the reinsurer: (a) All claims shall be reported to the reinsurer in a timely manner; (b) A copy of the claim file shall be sent to the reinsurer at its request or as soon as it becomes known that the claim: 1. Has the potential to exceed the lesser of an amount determined by the commissioner or the limit set by the reinsurer; 2. Involves a coverage dispute; 3. May exceed the reinsurance intermediary manager's claims settlement authority; 4. Is open for more than six (6) months; or 5. Is closed by payment of the lesser of an amount set by the commissioner or an amount set by the reinsurer; (c) All claim files shall be the joint property of the reinsurer and the reinsurance intermediary manager. However, upon an order of liquidation of the reinsurer, the files shall become the sole property of the reinsurer or its estate, but the reinsurance intermediary manager shall have reasonable access to and the right to copy the files; and (d) Any settlement authority granted to the reinsurance intermediary manager may be terminated for cause upon the reinsurer's written notice to the reinsurance intermediary manager or upon the termination of the contract. The reinsurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination; (10) If the contract provides for a sharing of interim profits by the reinsurance intermediary manager, that the interim profits shall not be paid until one (1) year after the end of each underwriting period for property business and five (5) years after the end of each underwriting period for casualty business, or a later period set by the commissioner for specified lines of insurance, and not until the adequacy of reserves on remaining claims has been verified pursuant to KRS 304.9-735(3); (11) The reinsurance intermediary manager shall annually provide the reinsurer with a statement of its financial condition prepared by an independent certified accountant; (12) The reinsurer shall at least semiannually conduct an on-site review of the underwriting and claims processing operations of the reinsurance intermediary manager; (13) The reinsurance intermediary manager shall disclose to the reinsurer any relationship it has with any insurer prior to ceding or assuming any business with such reinsurer pursuant to this contract; and (14) The acts of the reinsurance intermediary manager shall be deemed to be the acts of the reinsurer on whose behalf it is acting. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1086, effective July 15, 2010. -- Created 1992 Ky. Acts ch. 155, sec. 6, effective July 14, 1992.

KRS 304.9-730 Certain actions by reinsurance intermediary managers prohibited

304.9-730. Certain actions by reinsurance intermediary managers prohibited The reinsurance intermediary manager shall not: (1) Bind retrocessions on behalf of the reinsurer, except that the reinsurance intermediary manager may bind facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for those retrocessions. The guidelines shall include a list of reinsurers with which automatic agreements are in effect, and for each reinsurer, the coverages and amounts or percentages that may be reinsured, and the commission schedules; (2) Commit the reinsurer to participate in reinsurance syndicates; (3) Appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which he is appointed; (4) Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent (1%) of the reinsurer's policyholder's surplus as of December 31 of the last complete calendar year; (5) Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report shall be promptly forwarded to the reinsurer; (6) Jointly employ an individual who is employed by the reinsurer; or (7) Appoint a subreinsurance intermediary manager. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 155, sec. 7, effective July 14, 1992.

KRS 304.9-735 Reinsurers required to engage services of only licensed reinsurance managers

304.9-735. Reinsurers required to engage services of only licensed reinsurance managers (1) A reinsurer shall not engage the services of any person, firm, association, or corporation to act as a reinsurance intermediary manager on its behalf unless the person is licensed as required by KRS 304.9-705(2). (2) The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary manager which the reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the commissioner. (3) If a reinsurance intermediary manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary manager. This opinion shall be in addition to any other required loss reserve certification. (4) Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the reinsurance intermediary manager. (5) Within thirty (30) days of termination of a contract with a reinsurance intermediary manager, the reinsurer shall provide written notification of such termination to the commissioner. (6) A reinsurer shall not appoint to its board of directors any officer, director, employee, controlling shareholder, or subproducer of its reinsurance intermediary manager. This subsection shall not apply to relationships governed by Subtitle 37 of this chapter or, if applicable, any provisions of Subtitle 3 of this chapter on producer controlled insurers. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1087, effective July 15, 2010. -- Created 1992 Ky. Acts ch. 155, sec. 8, effective July 14, 1992.

KRS 304.9-740 Examination of reinsurance intermediaries

304.9-740. Examination of reinsurance intermediaries (1) A reinsurance intermediary shall be subject to examination by the commissioner. The commissioner shall have access to all books, bank accounts, and records of the reinsurance intermediary in a form usable to the commissioner. (2) A reinsurance intermediary manager may be examined as if it were the reinsurer. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1088, effective July 15, 2010. -- Created 1992 Ky. Acts ch. 155, sec. 9, effective July 14, 1992.

KRS 304.9-745 Suspension or revocation of license -- Imposition of penalties

304.9-745. Suspension or revocation of license -- Imposition of penalties (1) The license of a reinsurance intermediary may be suspended or revoked, civil penalties imposed in the amount applicable to agents under KRS 304.99-020, conditions imposed on the license, or any combination thereof, on the grounds set forth in KRS 304.9-440. (2) If a reinsurance intermediary violates any provision of this chapter or any other statute or administrative regulation administered by the commissioner, the reinsurance intermediary shall make restitution to the insurer, reinsurer, rehabilitator, or liquidator of the insurer or reinsurer for net losses incurred by the insurer or reinsurer attributable to the violation. (3) Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided in this chapter. (4) Nothing contained in KRS 304.9-700 to 304.9-759 is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, creditors, or third parties. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1089, effective July 15, 2010. -- Created 1992 Ky. Acts ch. 155, sec. 10, effective July 14, 1992.

KRS 304.9-750 Administrative regulations

304.9-750. Administrative regulations (1) The commissioner may promulgate reasonable administrative regulations for the implementation, interpretation, and administration of the provisions of KRS 304.9- 700 to 304.9-759. (2) Insurers or reinsurers shall not continue to utilize the services of a reinsurance intermediary on and after July 14, 1992, unless utilization is in compliance with KRS 304.9-700 to 304.9-759. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1090, effective July 15, 2010. -- Created 1992 Ky. Acts ch. 155, sec. 11, effective July 14, 1992.

KRS 304.9-759 Short title for KRS 304.9-700 to 304.9-759

304.9-759. Short title for KRS 304.9-700 to 304.9-759 KRS 304.9-700 to 304.9-759 may be cited as the Reinsurance Intermediary Act. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 155, sec. 12, effective July 14, 1992.

KRS 304.9-780 Portable electronics insurance retailer license -- Duties of supervising entity -- Qualifications and application for license -- Penalties

304.9-780. Portable electronics insurance retailer license -- Duties of supervising entity -- Qualifications and application for license -- Penalties (1) A portable electronics insurance retailer license issued under this section shall permit portable electronics retailers to offer and disseminate portable electronics insurance by the licensee, its employees, and authorized representatives at each location at which the portable electronics retailer does business in the state, provided the dissemination is conducted in accordance with the provisions of this section. (2) A portable electronics insurance supervising entity shall maintain a register of each separate business location where a portable electronics retailer and its employees or authorized representatives offer and disseminate portable electronics insurance and shall make the register open to inspection and examination by the commissioner upon request. The register shall include the name of the retailer, the address for each location, and any additional information the commissioner may prescribe by administrative regulation. (3) A portable electronics insurance supervising entity shall oversee the administration of a portable electronics retailer's insurance program. (4) The commissioner may issue to a business entity qualified under this section a license to act as a portable electronics insurance retailer. (5) For a portable electronics insurance retailer license to be issued under this section, the business entity shall submit to the commissioner the following: (a) A written application, on a form prescribed by the commissioner, which shall include: 1. Information solely related to an employee or officer of the portable electronics retailer designated by the applicant as a person responsible for the portable electronics retailer's compliance with this chapter; or 2. If the portable electronics retailer derives more than fifty percent (50%) of its revenue from the sale of portable electronics insurance, information shall be provided for all officers, directors, and shareholders of record that have beneficial ownership of ten percent (10%) or more of any class of securities, who are subject to 15 U.S.C. sec. 78p; and (b) The application fee as provided in KRS 304.4-010 and administrative regulations promulgated thereunder. (6) The commissioner may require any documents reasonably necessary to verify the information contained in the application submitted in accordance with subsection (5) of this section. (7) If a portable electronics retailer violates any provision of this section or KRS 304.9- 782 or 304.9-784 or any applicable provision of this chapter, the commissioner may impose penalties in accordance with KRS 304.9-440. Any civil penalty imposed by the commissioner, except for civil penalties associated with violations constituting fraud or a material misrepresentation, may not exceed five thousand dollars ($5,000) in the aggregate for multiple violations arising out of the same or similar conduct. Effective: July 12, 2012 History: Created 2012 Ky. Acts ch. 92, sec. 4, effective July 12, 2012.

KRS 304.9-782 Conditions under which license authorizes employee or representative to sell portable electronics insurance -- Restrictions on licensees

304.9-782. Conditions under which license authorizes employee or representative to sell portable electronics insurance -- Restrictions on licensees (1) A portable electronics insurance retailer license issued to a business entity under KRS 304.9-780 shall authorize an employee or authorized representative of the business entity licensee to offer and disseminate portable electronics insurance without being licensed, registered, or otherwise individually identified, if all of the following are true: (a) The employee, representative, or managing employee operates with permission from the business entity licensee; (b) The business entity licensee assumes responsibility for the insurance activities of its unlicensed employees, authorized representatives, or managing employees; (c) The employee or authorized representative operates under the supervision of a portable electronics insurance supervising entity who shall be available for consultation for and adequate supervision of the sale, solicitation, or negotiation of portable electronics insurance. However, a portable electronics insurance supervising entity need not be present where portable electronics insurance is offered and disseminated; and (d) The employee or authorized representative is not primarily compensated based on the amount of insurance sold by the employee or representative. However, an employee or authorized representative may receive compensation for activities under the license which is incidental to the employee's or representative's overall compensation. (2) A licensee shall not advertise, represent, or otherwise hold out the licensee or any employee or authorized representative of the licensee as a licensed insurance agent under another section of this subtitle, unless the entity or individual actually holds the applicable license. Effective: July 12, 2012 History: Created 2012 Ky. Acts ch. 92, sec. 5, effective July 12, 2012.

KRS 304.9-784 Duty to disclose information regarding portable electronics insurance coverage -- Standards -- Billing and collection of charges -- Notice and correspondence

304.9-784. Duty to disclose information regarding portable electronics insurance coverage -- Standards -- Billing and collection of charges -- Notice and correspondence (1) At every location where portable electronics insurance is offered to customers, brochures or other written materials shall be made available to a prospective customer which: (a) Disclose that portable electronics insurance may provide a duplication of coverage already provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of coverage; (b) State that the enrollment by the customer in a portable electronics insurance policy is not required in order to purchase or lease portable electronics or services; (c) Summarize the material terms of the insurance coverage, including: 1. The identity of the insurer; 2. The identity of the portable electronics insurance supervising entity; 3. The amount of any applicable deductible and how it is to be paid; 4. Benefits of the coverage; and 5. Key terms and conditions of coverage, including but not limited to whether portable electronics may be repaired with nonoriginal manufacturer parts or equipment or replaced with a similar make and model that is reconditioned; (d) Summarize the process for filing a claim, including a description of how to return portable electronics and the maximum fee applicable if the customer fails to comply with any equipment return requirements; and (e) State that an enrolled customer may cancel enrollment for coverage under a portable electronics insurance policy at any time and the person paying the premium shall receive a refund of any applicable unearned premium. (2) Portable electronics insurance may be offered on a month-to-month basis or other period basis as a group or master commercial inland marine policy issued to a portable electronics retailer for its enrolled customers. (3) Eligibility and underwriting standards for customers electing to enroll in coverage shall be established for each portable electronics insurance policy. (4) The charges for portable electronics insurance coverage may be billed and collected by the portable electronics retailer. Any charge to a customer for coverage that is not included in the cost associated with the purchase or lease of portable electronics or related services shall be separately itemized on the customer's bill. If the portable electronics insurance coverage is included with the purchase or lease of portable electronics or related services, the portable electronics retailer shall clearly and conspicuously disclose to the customer that the portable electronics insurance coverage is included with the portable electronics or related services. Portable electronics retailers' billing and collecting charges shall not be required to maintain the portable electronics insurance funds in a segregated account, provided that the retailer is authorized by the insurer to hold the funds from the sale of portable electronics insurance in an alternative manner and remit such amounts to the portable electronics insurance supervising entity within sixty (60) days of receipt. All funds received by a portable electronics retailer from a customer for the sale of portable electronics insurance shall be held in a fiduciary capacity by the portable electronics retailer for the benefit of the insurer. Portable electronics retailers may receive compensation for billing and collection services. (5) The terms for the termination or modification of a policy of portable electronics insurance shall be as set forth in the policy. (6) (a) Whenever notice or correspondence concerning a policy of portable electronics insurance is required pursuant to the policy or is otherwise required by law, it shall be: 1. In writing; and 2. Sent within the notice period, if any, specified within the policy, statute, or regulation requiring the notice or correspondence. (b) Notwithstanding any other provision of law, notices and correspondence may be sent either by mail or by electronic means as required by this section. (c) If the notice or correspondence is mailed, it shall be sent to: 1. The portable electronics retailer at the retailer's mailing address specified for that purpose; and 2. Each affected enrolled customer at the last known mailing address of the customer on file with the insurer. The insurer or portable electronics retailer shall maintain proof of mailing in a form authorized or accepted by the United States Postal Service or other commercial mail delivery service. (d) If the notice or correspondence is sent by electronic means, it shall be sent to: 1. The portable electronics retailer at the retailer's electronic mail address specified for that purpose; and 2. Each affected enrolled customer at the last known electronic mail address provided by the enrolled customer to the insurer or portable electronics retailer. For purposes of this subparagraph, an enrolled customer who provides an electronic mail address to the insurer or portable electronics retailer shall be deemed to consent to receive notices and correspondence if a disclosure is provided to the customer stating that an enrolled customer's provision of an electronic mail address shall be deemed consent to receive notices and correspondence by electronic means. The insurer or portable electronics retailer shall maintain proof that a notice or correspondence was sent by electronic means. (e) Notice or correspondence required by this section or otherwise required by law may be sent on behalf of an insurer or portable electronics retailer by the supervising entity appointed by the insurer. Effective: July 12, 2012 History: Created 2012 Ky. Acts ch. 92, sec. 6, effective July 12, 2012.

KRS 304.9-4331 Insured's rights -- Written notice requirement -- Duties of public adjuster -- Limitation on negotiation for two years beginning on July 15, 2026

304.9-4331. Insured's rights -- Written notice requirement -- Duties of public adjuster -- Limitation on negotiation for two years beginning on July 15, 2026 (1) A public adjuster shall give an insured written notice of the insured's rights under this section and KRS 304.9-433 and 304.9-4332. (2) A public adjuster shall ensure that: (a) Prompt notice of a claim is provided to the insurer; (b) The property that is subject to a claim is available for inspection of the loss or damage by the insurer; and (c) The insurer is given the opportunity to interview the insured directly about the loss or damage and claim. (3) A public adjuster shall not restrict or prevent an insurer or its adjuster, or an attorney, investigator, or other person acting on behal f of the insurer, from: (a) Having reasonable access, at reasonable times, to: 1. The insured or claimant; or 2. The insured property that is the subject of a claim; (b) Obtaining necessary informatio n to investigate and respond to a claim; or (c) Corresponding directly with the insured regarding the claim, except a public adjuster shall be copied on any correspondence with the insured relating to the claim. (4) (a) A public adjuster shall not act or fail to reasonably act in any manner that obstructs or prevents the insurer or its adjuster from timely conducting an inspection of any part of the insured property for which there is a claim for loss or damage. (b) Except as provided in paragraph (c) of this subsection, a public adjuster representing an insured may be present for the insurer's inspection. (c) If the unavailability of a public adjuster, after a reasonable request by the insurer, otherwise delays the insurer's timely inspection of the propert y, the insured shall allow the insurer to have access to the property without the participation or presence of the public adjuster in order to facilitate the insurer's prompt inspection of the loss or damage. (5) A public adjuster shall provide the insured , the insurer, and the commissioner with a written disclosure concerning any direct or indirect financial interest that the adjuster has with any other party who is involved in any aspect of the claim. (6) A public adjuster shall not: (a) Participate, directly or indirectly, in the reconstruction, repair, or restoration of damaged property that is the subject of a claim adjusted by the adjuster; (b) Engage in any activities that may be reasonably construed as a conflict of interest, including, directly or indirectly, soliciting or accepting any remuneration of any kind or nature; (c) Have a financial interest in, or otherwise be affiliated with, any salvage, repair, or any other business entity or person that obtains business in connection with any claim that the public adjuster has a contract to adjust; (d) Utilize a contractor, another form of business, or any other person to solicit or obtain contract signatures; or (e) 1. Use claim information obtained in the course of any claim investigation for commercial purposes. 2. As used in subparagraph 1. of this paragraph, "commercial purposes" includes marketing or advertising used for the benefit of the public adjuster. (7) For a period of two (2) years beginning on July 15, 2026, a public adjuster shall not negotiate with an insurer on behalf of an insured in the adjustment or settlement of a claim. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 141, sec. 5, effective July 15, 2026. -- Created 2023 Ky. Acts ch. 11, sec. 3, effective June 29, 2023. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 141, sec. 14, provides that the amendments to this statute in that Act apply to contracts entered into on or after July 15, 2026.

KRS 304.9-4332 Requirements for funds received or held by public adjuster

304.9-4332. Requirements for funds received or held by public adjuster (1) All funds received or held by a public adjuster on behalf of an insured toward the settlement of a claim shall be: (a) Handled in a fiduciary capacity; and (b) Deposited into one (1) or more separate noninterest-bearing fiduciary trust accounts in a financial institution licensed to do business in this state no later than the close of the second business day from the receipt of the funds. (2) The funds referenced in subsection (1) of this section shall: (a) Be held separately from any personal or nonbusiness funds; (b) Not be commingled or combined with other funds; (c) Be reasonably ascertainable from the books of accounts and records of the public adjuster; and (d) Be disbursed within thirty (30) calendar days of any invoice received by the public adjuster upon approval of the insured or the claimant that the work has been satisfactorily completed. (3) For any funds deposited into an account under subsection (1) of this section, a public adjuster shall: (a) Maintain an accurate record and itemization of the funds in accordance with KRS 304.9-435; and (b) Provide the insured with a receipt of deposit within three (3) business days after the date the funds were deposited. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 141, sec. 6, effective July 15, 2026. -- Created 2023 Ky. Acts ch. 11, sec. 4, effective June 29, 2023. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 141, sec. 14, provides that the amendments to this statute in that Act apply to contracts entered into on or after July 15, 2026.

KRS 304.9-4333 Fees and compensation for public adjuster

304.9-4333. Fees and compensation for public adjuster (1) Any fee charged to an insured by a public adjuster shall: (a) Be based only on the amount of the insurance settlement proceeds actually received by the insured; (b) Be collected by the public adjuster after the insured has received the insurance settlement proceeds from the insurer; and (c) Comply with subsections (2) and (3) of this section. (2) Except as provided in subsection (3) of this section or KRS 304.9-433(1): (a) A public adjuster may receive a fee for services provided under this subtitle consisting of: 1. An hourly rate; 2. A flat rate; 3. A percentage rate; or 4. Another method of compensation; and (b) A public adjuster: 1. Shall not charge: a. An unreasonable fee; or b. A fee based on insurance settlement proceeds received by the insured prior to: i. The execution of a contract between the insured and public adjuster; or ii. The conclusion of the rescission period required under KRS 304.9-433; and 2. May charge a reasonable fee that does not exceed ten percent (10%) of the insurance settlement proceeds upon which a fee may be based under this section. (3) In the event a public adjuster is entitled to compensation in accordance with KRS 304.9-433(1)(b) and the insurer either pays or commits in writing to pay the policy limit of the insurance policy to the insured prior to the execution of, or conclusion of a rescission period for, a contract between the insured and the public adjuster, the public adjuster shall: (a) Not receive a commission consisting of a percentage rate; (b) Inform the insured that the claim settlement amount may not be increased by the insurer; and (c) Be entitled only to reasonable compensation from the insured for services provided by the adjuster on behalf of the insured, based on the time spent on the claim and expenses incurred by the adjuster prior to when the claim was paid or the insured received a written commitment to pay from the insurer. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 141, sec. 7, effective July 15, 2026. -- Created 2023 Ky. Acts ch. 11, sec. 5, effective June 29, 2023. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 141, sec. 14, provides that the amendments to this statute in that Act apply to contracts entered into 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=38695Fetched: 10/20/2026