Definition of gross debt -- Credit personal property insurance -- Restrictions and requirements
KRS 304.19-204
in effect304.19-204. Definition of gross debt -- Credit personal property insurance -- Restrictions and requirements
(1) As used in this section, "gross debt" means the sum of the remaining payments owed to a creditor by a debtor.
(2) For credit personal property insurance sold in conjunction with a closed -end credit transaction, an insurer shall not issue the insurance:
(a) In an amount that exceeds the gross debt of the underlying credit transaction; or
(b) With a term that exceeds the scheduled term of the underlying credit transaction.
(3) Credit personal property insurance shall cover a substantial risk of loss of, or damage to, the collateral pledged or secured in the credit transaction.
(4) An insurer shall not:
(a) Require the bundling of other credit insurance coverages with the purchase of credit personal property insurance; or
(b) Use gross debt in determining credit personal property insurance premiums.
(5) A debtor shall have the choice to purchase credit personal property insurance separate from other credit insurance coverage.
Effective: July 15, 2026
History: Created 2026 Ky. Acts ch. 16, sec. 13, effective July 15, 2026. Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 16, sec. 25, provides that this statute shall apply to contracts issued or renewed on or after July 15, 2026.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57196Fetched: 10/20/2026