Title XXV, Business and Financial Institutions

or lead state regulator -- Required information and support -- Annual filing of amended version -- Confidentiality -- Use and sharing of filings and information -- Parties retained to assist commissioner. (1) As used in this section: (a) "Insurance group" means those insurers and…

- Publication of financial statement prepared on a different basis. (1) (a) Each authorized insurer shall annually file with the commissioner a true statement of its financial condition, transactions, and affairs as of December 31 preceding. (b) The statement shall be: 1. Filed e…

statements. The annual statement and quarterly statements required by KRS 304.3-240 shall be completed in accordance with accounting practices and procedures which meet or exceed the accounting practices and procedures established by the National Association of Insurance Commissi…

opinion and supporting documentation -- Opinion to be available for public inspection -- Confidentiality of supporting documentation -- Exemptions to filing requirement. (1) Every insurer authorized to transact property or casualty insurance, unless otherwise exempt in accordance…

(1) The purpose of this section is to aid in the protection of insurers formed under the laws of Kentucky and transacting insurance in other states or countries against discriminatory or onerous requirements under the laws of such states or countries or the administration thereof…

of insured eligible for medical assistance. A certificate of authority shall not be issued to an insurer who has a provision in its insurance contract which has the effect of limiting or excluding its obligation to pay on a claim because the insured is eligible for or is provided…

commissioner. (1) Foreign insurers currently admitted to do the business of life and health insurance in Kentucky and foreign insurers hereafter admitted to do the business of life and health insurance in Kentucky which are domiciled in states which have no life and health insura…

analyst. (1) Loans that are more than ninety (90) days past due shall be reported in writing by a domestic insurer to the early warning analyst created in KRS 304.2-065. (2) Loans in foreclosure shall be reported to the early warning analyst in writing by a domestic insurer when …

As used in KRS 304.3-400 to 304.3-430, unless the context requires otherwise: (1) "Accredited state" means a state in which the insurance regulatory agency has qualified as meeting the minimum financial regulatory standards promulgated and established from time to time by the Nat…

KRS 304.3-400 to 304.3-430 shall apply to authorized insurers as defined in KRS 304.3- 400, either domiciled in this Commonwealth or domiciled in a state that is not an accredited state having in effect a substantially similar law. All provisions of Subtitle 37 of this chapter, r…

Audit committees -- Reporting requirements. (1) The applicability of this section is as follows: (a) The provisions of this section shall only apply if in any calendar year, the aggregate amount of gross written premium on business placed with a controlled insurer by a controllin…

and controlled insurer -- Exceptions. The producer, prior to the effective date of the policy, shall deliver written notice to the prospective insured disclosing the relationship between the producer and the controlled insurer, except that, if the business is placed through a sub…

(1) If the commissioner believes that the controlling producer or any other person has not materially complied with KRS 304.3-400 to 304.3-430, or any administrative regulation or order promulgated under KRS 304.3-400 to 304.3-430, the commissioner may: (a) Order the controlling …

Controlled insurers and controlling producers which are not in compliance with KRS 304.3-410 on July 14, 1992, shall have sixty (60) days after July 14, 1992, to comply, and shall comply with KRS 304.3-415 beginning with all policies written or renewed on or after sixty (60) days…

KRS 304.3-400 to 304.3-430 may be cited as the Business Transacted with a Producer- Controlled Property or Casualty Insurer Act.

As used in KRS 304.3-500 to 304.3-570, unless the context requires otherwise: (1) "Actuary" means a person who is a member in good standing of the American Academy of Actuaries; (2) "Insurer" means any person duly authorized as an insurer by the commissioner; (3) "Controlling age…

(1) A person shall not be, act as, or hold himself or herself out as a controlling agent with respect to risks located in Kentucky for an insurer authorized in Kentucky unless the person is licensed as agent by Kentucky. (2) A person shall not be, act as, or hold himself or herse…

- Prohibited activities. A person acting in the capacity of controlling agent shall not place business with an insurer unless there is in force a written contract between the parties which sets forth the responsibilities of each party and, where both parties share responsibility …

(1) The insurer shall have on file an independent financial examination, in a form acceptable to the commissioner, of each controlling agent with which it has done business. (2) If a controlling agent establishes loss reserves, the insurer shall annually obtain the opinion of an …

The acts of controlling agents are considered to be the acts of the insurer on whose behalf the controlling agents are acting. A controlling agent may be examined by the commissioner as if it were the insurer.

(1) If the commissioner finds that any person has violated any provision of KRS 304.3- 500 to 304.3-570 or KRS 304.9-440, the commissioner may order: (a) For each separate violation, a civil penalty in the amounts set forth in KRS 304.99-020; (b) Conditions upon, or revocation, o…

(1) The commissioner may promulgate administrative regulations for the implementation and administration of the provisions of KRS 304.3-500 to 304.3- 570. (2) An insurer shall not continue to utilize the services of a controlling agent on and after the effective date of KRS 304.3…

KRS 304.3-500 to 304.3-570 may be cited as the Controlling Agents Act.

As used in KRS 304.3-600 to 304.3-635 and 304.99-055: (1) "Insurance group" means, for the purpose of conducting an ORSA, those insurers and affiliates included within an insurance holding company system as defined in KRS 304.37-010; (2) "Insurer" has the same meaning as in KRS 3…

The requirements of KRS 304.3-600 to 304.3-635 and 304.99-055 shall apply to all insurers domiciled in this state, unless exempt pursuant to KRS 304.3-625.

(1) An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. (2) The requirement of subsection (1) of this section may be satisfied if the insurance group of wh…

Frequency. (1) Except as provided in KRS 304.3-625, an insurer or the insurance group of which the insurer is a member shall regularly conduct an ORSA consistent with a process comparable to the ORSA Guidance Manual. (2) The ORSA shall be conducted no less often than annually, bu…

reports -- When required -- Contents -- Signature. (1) (a) Upon the commissioner's request, and no more than once each year, an insurer shall submit to the commissioner an ORSA Summary Report or any combination of reports that together contain the information described in the ORS…

304.99-055 -- Conditions. (1) An insurer shall be exempt from the requirements of KRS 304.3-600 to 304.3-635 and 304.99-055 if: (a) The insurer has annual direct written and unaffiliated assumed premium in an amount less than five hundred million dollars ($500,000,000), including…

(1) The ORSA Summary Report shall be prepared in accordance with the ORSA Guidance Manual, subject to the requirements of subsection (2) of this section. Documentation and supporting information shall be maintained and made available upon examination or request by the commissione…

and exempt from Open Records Act and private civil action subpoena, discovery, and testimony -- Powers of commissioner. (1) Documents, materials, or other information, including the ORSA Summary Report, in the possession of or control of the department that are obtained by, creat…

As used in KRS 304.3-700 to 304.3-735, unless context requires otherwise: (1) "Applicant" means a person that has filed an application under KRS 304.3-705; (2) "Beta test" means the phase of testing of an insurance innovation in the regulatory sandbox through the use, sale, licen…

stability requirements -- Disqualifying factors -- Participation in regulatory sandbox under KRS 15.268. (1) Except as provided in subsection (2) of this section, on or before December 31, 2030, a person may apply to the department for admission to the sandbox by submitting an ap…

acceptance or rejection -- Hearing. (1) There shall be a director of insurance innovation within the department, responsible for administering KRS 304.3-700 to 304.3-735. The director shall be appointed by the secretary of the Public Protection Cabinet with the approval of the Go…

limited letter on department's Web site. (1) Within ten (10) days following the timely receipt of an acceptance pursuant to KRS 304.3-710(6)(b)2., the commissioner shall issue a limited no-action letter that: (a) Sets forth terms and conditions for the participant that are the sa…

conditions -- Early termination -- Cease and desist order -- Appeal. (1) The time period for a beta test shall be one (1) year. The time period may be extended by the commissioner in the notice of acceptance for a period that is not longer than one (1) year if a request is made i…

letter or notice declining to issue extended letter -- Safe harbor of extended letter -- Use of innovation and conduct permitted -- Hearing -- Publication of extended letter on department's Web site. (1) (a) Within sixty (60) days of completion of the beta test, unless the time p…

extended no-action letter. (1) All documents, materials, or other information in the possession or control of the department that are created, produced, obtained, or disclosed in relation to KRS 304.3-700 to 304.3-735 and that relate to the financial condition of any person shall…

(1) One hundred twenty days (120) days prior to the start of the 2026, 2027, 2028, 2029, and 2030 regular sessions of the General Assembly, the commissioner shall submit a written report to the Interim Joint Committee on Banking and Insurance that meets the requirements of subsec…

As used in KRS 304.3-750 to 304.3-768: (1) "Consumer" means an individual, including but not limited to an applicant, policyholder, insured, beneficiary, claimant, and certificate holder: (a) Who is a resident of this Commonwealth; and (b) Whose nonpublic information is in a lice…

A licensee with fewer than fifty (50) employees, including independent contractors, shall be exempt from the requirements of KRS 304.3-750 to 304.3-768.

Notwithstanding any other law, KRS 304.3-750 to 304.3-768 establish the exclusive requirements applicable to licensees, except licensees exempt under KRS 304.3-752, under the laws of the Commonwealth of Kentucky for: (1) Data security; (2) The investigation of a cybersecurity eve…

Written incident response plan -- Annual certification to commissioner. (1) As used in this section: (a) "Authorized individual" means an individual: 1. Known to, and screened by, the licensee; and 2. Determined to be necessary and appropriate to have access to the nonpublic info…

(1) (a) If a licensee learns that a cybersecurity event has or may have occurred, the licensee, or an outside vendor or service provider designated to act on behalf of the licensee, shall conduct a prompt investigation. (b) During an investigation required under this subsection, …

(1) Each licensee shall notify the commissioner of a cybersecurity event involving nonpublic information that is in the possession of the licensee as promptly as possible, but in no event later than three (3) business days from a determination that a cybersecurity event has occur…

(1) (a) The commissioner shall have the power to examine and investigate the affairs of any licensee to determine whether the licensee has been or is engaged in any conduct in violation of KRS 304.3-756, 304.3-758, or 304.3-760. (b) The power granted to the commissioner under thi…

Releases. (1) (a) Subject to paragraph (b) of this subsection and subsections (3) and (6) of this section, any documents, materials, or other information in the control or possession of the department that are furnished by a licensee, or an employee or agent acting on behalf of a…

(1) A licensee shall be deemed in compliance with KRS 304.3-750 to 304.3-768 if the licensee: (a) 1. Is subject to, governed by, and compliant with the privacy, security, and breach notifications rules issued by the United States Department of Health and Human Services, 45 C.F.R.…

Penalties for violations of KRS 304.3-750 to 304.3-768 shall be in accordance with KRS 304.99-020.

The provisions of this subtitle shall not apply with respect to: (1) Any insurer licensed to do business in this state; (2) Any banking institution, trust, loan, mortgage, safe deposit company, or title insurer, building association, credit union, moneylenders, or common trust fu…