AN ACT relating to the application of Subtitle 17A of KRS Chapter 304.

Kentucky exempts many insurance products

The law excludes many insurance products and benefits from Kentucky’s Subtitle 17A insurance rules. Exclusions cover accident-only, credit-only, dental-only, vision-only, and disease- or condition-specific coverage. They also cover disability income, paid family leave, long-term care, short-term nursing home, and Medicare supplement insurance. Hospital and other fixed-payment insurance, limited health service plans, and limited health service contracts are also excluded. Exclusions also cover medical benefits attached to liability insurance or equivalent self-insurance, or supplementing other insurance or self-insurance. Examples include auto medical-payment coverage and medical benefits attached to life insurance, endowment, or annuity contracts. Separate medical reimbursement policies that fill gaps in primary health coverage are excluded too. Other exclusions cover Kentucky public assistance and workers’ compensation benefits, other statutory public assistance or compensation programs, on-site clinics, and health flexible spending accounts. A Subtitle 17A section still applies when it or another section expressly makes it apply to an excluded coverage type. The insurance commissioner can exempt additional similar or limited coverage through administrative rules.