KentuckyHB 5272026 Regular SessionHouseWALLET

AN ACT relating to insurance regulatory requirements and declaring an emergency.

Sponsored By: Michael Sarge Pollock (Republican)

Signed by Governor

Actuarial AnalysisDisasters And Recovery EffortsHealth And Medical ServicesHealth Benefit Plan MandateInsuranceInsurance, HealthInvestmentsLicensingLocal MandateState AgenciesState Employee Health Plan MandateTechnical CorrectionsWorkers Compensation

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 0 costs, 2 mixed.

Floor and cap on annuity minimums

For deferred annuities, the law sets the interest rate for minimum nonforfeiture values at the smaller of 3% or the five‑year Treasury rate minus 1.25 points, but never below 1% per year. Contracts must say when and how this rate can be reset.

Faster, fairer health coverage reviews

Insurers and review agents must register and use same‑specialty doctors for medical denials; chiropractors and optometrists review those services. Review deadlines are 24 hours for urgent care and 5 days for nonurgent care after all information is received. If they miss a deadline, the care is treated as preapproved unless the delay was beyond their control. Every plan must offer internal appeals decided in 30 days (or 3 business days if expedited) and explain medical reasons, the reviewer’s license, and how to seek external review. Review policy changes must be filed and approved before use, and review agents must keep the department updated on who they review.

Tougher licensing and education for agents

To be licensed, agents must complete 40 hours for life/health or property/casualty (20 hours per added line) and keep errors‑and‑omissions insurance of at least $20,000 per claim/$100,000 total or a $20,000 bond. Licenses renew every two years (by your birth month; businesses by March 31). You must show continuing education at renewal; licenses end at midnight on the due date, with 60 days to renew with a penalty. Insurers must file and renew agent appointments by March 31; late renewals are allowed until June 30 with a penalty. Business entities may act only through designated licensed people and must report changes within 30 days or risk inactivation; MGAs must be licensed and meet set qualifications; address/name changes must be reported in 30 days; application/exam fees are nonrefundable if denied; the state no longer issues limited‑line licenses for motor vehicle physical damage or mechanical breakdown (older ones stay until ended).

Insurers accountable and better complaint tracking

Insurers are responsible for their agents’ and adjusters’ acts when they act within their authority, including licensed people designated under an appointed business entity. The Department of Insurance must keep every written, signed complaint for at least five years, record outcomes, and index records by insurer and licensee.

Stronger protections when banks sell insurance

Banks that sell insurance must be licensed and give clear written notices: insurance is not a deposit, not FDIC‑insured, not guaranteed, and may have investment risk. They must tell you that you can choose any agent or insurer. Banks cannot share your insurance data for sales without prior notice and an opt‑out, or use your health data without your written consent (with limited licensed‑agency exceptions). They must follow anti‑tying rules, avoid loan delays to push insurance, report final violations to the state within 10 days, keep separate records, and get written consent before adding insurance costs to a loan.

Easier out-of-state licensing, with penalties

If you hold a valid license in another state, Kentucky grants a nonresident license when you apply and pay fees; you must report a home‑state change within 30 days. Many applicants can skip prelicensing classes and exams, including those with a similar Kentucky license in the last 12 months (not revoked/suspended for most causes) and those licensed in another state who apply on time. If your Kentucky license lapsed, you can renew within 12 months by paying the renewal fee plus a penalty equal to double the unpaid renewal fee. Employees working under a licensed administrator’s supervision are not treated as administrators for those duties.

Sponsors & Cosponsors

Sponsor

Michael Sarge Pollock
Republican • House

Cosponsors

Jim Gooch Jr.
Republican • House

Roll Call Votes

All Roll Calls

Yes: 130 • No: 0

Senate vote • 3/25/2026

3rd reading, passed

Yes: 38 • No: 0

House vote • 2/20/2026