Title XXV, Business and Financial Institutions

(1) As used in this subtitle: (a) "Casualty insurance" has the meaning set forth in KRS 304.5-070; and (b) "Property insurance" has the meaning set forth in KRS 304.5-050. (2) All insurers licensed to write property or casualty insurance in this Commonwealth on a direct basis sha…

Each insurer authorized to write property or casualty insurance on a direct basis in this Commonwealth shall be required to become and remain a member of the plan and the reinsurance association, and comply with the requirements thereof as a condition of its authority to transact…

(1) The "FAIR" plan and articles of association shall make provision for a reinsurance association having authority on behalf of its members as their agent to cause to be issued property and casualty insurance policies, to reinsure in whole or in part any such policies, and to ce…

(1) The Reinsurance Association shall be governed by a committee of seven (7) persons to be appointed by the commissioner of insurance, which shall consist of the following: (a) One (1) person representing an insurer chartered under the laws of the Commonwealth of Kentucky; (b) O…

Any person aggrieved by any action or decision of the governing committee may appeal to the commissioner of insurance within thirty (30) days from the date of the action or the decision. The commissioner shall, after a hearing conducted in accordance with KRS Chapter 13B, issue a…

All rights and obligations accruing under Chapter 65 of the 1972 Acts or Chapter 359 of the 1980 Acts are hereby preserved. The plan and association created pursuant to KRS 304.35-010 to 304.35-050 shall become the successors to the plan and association created pursuant to Chapte…

names to state fire marshal. The commissioner shall request, receive and transmit the names and addresses of all commercial real property policy applicants to the "FAIR" plan to the state fire marshal.

Catchline at repeal: "Surety insurance" defined.

Catchline at repeal: "Title insurance" defined.

Catchline at repeal: Reinsurance treaties and contracts.

Catchline at repeal: Reinsurance, limit of risk.

This subtitle may be cited as the Kentucky Insurance Guaranty Association Act.

The purpose of this subtitle is to provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and to the extent provided in this subtitle to minimize financial loss to claimants or policyholders because of the insolv…

(1) As used in this section, "ocean marine insurance" includes: (a) Any form of insurance, regardless of name, label, or marketing designation of the insurance policy, that insures against maritime perils or risks and other related perils or risks that are usually insured against…

This subtitle shall be construed to effect the purpose under KRS 304.36-020 which shall constitute an aid and guide to interpretation.

As used in this subtitle, unless the context otherwise requires: (1) "Affiliate" means a person who directly or indirectly, through one (1) or more intermediaries, controls, is controlled by, or is under common control with an insolvent insurer on December 31 of the year immediat…

There is created a nonprofit unincorporated legal entity to be known as the Kentucky Insurance Guaranty Association. All insurers defined as member insurers in KRS 304.36- 050 shall be and remain members of the association as a condition of their authority to transact insurance i…

(1) The board of directors of the association shall consist of not less than five (5) nor more than nine (9) persons serving terms as established in the plan of operation. The members of the board shall be selected by member insurers subject to the approval of the commissioner. V…

(1) The association shall: (a) 1. Be obligated to the extent of the covered claims existing: a. Prior to the order of liquidation and arising within thirty (30) days after the order of liquidation; b. Before the policy expiration date if less than thirty (30) days after the order…

association -- Association permitted to apply to vacate judgment based on default of insolvent insurer. All proceedings in which the insolvent insurer is a party or is obligated to defend a party in any court in this state shall, subject to waiver by the association in specific c…

(1) (a) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective u…

(1) The commissioner shall: (a) Notify the association of the existence of an insolvent insurer not later than three (3) days after he or she receives notice of the determination of the insolvency; and (b) Upon request of the board of directors, provide the association with a sta…

(1) Any person recovering under this subtitle shall be deemed to have assigned his rights under the policy to the association to the extent of his recovery from the association. Every insured or claimant seeking the protection of this subtitle shall cooperate with the association…

(1) Any person having a claim against an insurer under any provision in an insurance policy other than the policy of an insolvent insurer which is also a covered claim shall be required to exhaust first his right under the policy. Any amount payable on a covered claim under this …

To aid in the detection and prevention of insurer insolvencies: (1) It shall be the duty of the board of directors, upon majority vote, to notify the commissioner of any information indicating any member insurer may be insolvent or in a financial condition hazardous to the policy…

The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the commissioner.

The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions except taxes levied on real or personal property.

The rates and premiums charged for insurance policies to which this subtitle applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member insurer by the association and such rat…

There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the association or its agents or employees, the board of directors, or the commissioner, or the commissioner's representatives for any action taken by them in t…

Catchline at repeal: "Assets" defined.

Catchline at repeal: "Assets" not allowed.

Catchline at repeal: Liabilities.

Catchline at repeal: Unearned premium reserve; computation.

As used in this subtitle, unless the context requires otherwise: (1) "Affiliate" or person "affiliated" with a specific person means a person that directly, or indirectly through one (1) or more intermediaries, controls, or is controlled by, or is under common control with, the p…

(1) As used in this section: (a) "Group capital calculation instructions" means the group capital calculation instructions adopted or amended by the NAIC in accordance with procedures adopted by the NAIC; and (b) 1. "NAIC Liquidity Stress Test Framework" means a separate NAIC pub…

considered -- Prohibited transactions. (1) Material transactions by registered insurers with their affiliates shall be subject to the following standards: (a) The terms shall be fair and reasonable; (b) Agreements for cost sharing services and management shall include provisions …

(1) Subject to the limitation contained in this section and in addition to the powers which the commissioner has under KRS Chapter 304 relating to the examination of insurers, the commissioner shall also have the power to: (a) Examine an insurer registered under KRS 304.37-020 an…

Sharing and use of information. (1) (a) Subject to paragraph (b) of this subsection and subsection (3) of this section, all documents, materials, or other information in the possession or control of the department that are obtained by or disclosed to the commissioner or any other…

commission. (1) With respect to any insurer registered pursuant to KRS 304.37-020, and in accordance with subsection (3) of this section, the commissioner shall have the authority to participate in a supervisory college for any domestic insurer that is part of an insurance holdin…

The commissioner may, upon notice and opportunity for all interested persons to be heard, issue such orders as shall be necessary to carry out the provisions of this subtitle.

Whenever it appears to the commissioner that any person has committed a violation of this subtitle which so impairs the financial condition of a domestic insurer as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, creditors,…

Whenever it appears to the commissioner that any person has committed a violation of this subtitle which makes the continued operation of an insurer contrary to the interest of policyholders or the public, the commissioner may, after giving notice and an opportunity to be heard, …

The commissioner shall, if requested by any interested party served with notice as required herein, make a complete record of any testimony, evidence, and proceedings at any hearing conducted pursuant to this subtitle.

(1) Any person aggrieved by any act, determination, rule, regulation, order, or any other action of the commissioner pursuant to this subtitle, may file appropriate proceedings in the Franklin Circuit Court or other court of competent jurisdiction for proper relief. (2) The filin…

Investments of domestic insurers. (1) Any domestic insurer, either by itself or in cooperation with one (1) or more persons, may organize or acquire one (1) or more subsidiaries engaged in the following kinds of business: (a) Any kind of insurance business authorized by the juris…

Kentucky courts. (1) No person other than the issuer shall make a tender offer for, a request or invitation for tenders of, enter into any agreement to exchange securities, seek to acquire, or acquire in the open market or otherwise, any voting security of a domestic insurer if, …

(1) The following definitions shall apply for the purposes of this section only: (a) "Acquisition" means any agreement, arrangement, or activity the consummation of which results in a person acquiring directly or indirectly the control of another person, such as the acquisition o…

(1) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under the order shall have the right to recover on behalf of the insurer, from any parent corporation or holding company or person or affiliate who otherwise controlle…

or action of commissioner -- Legal actions to enjoin voting and to seize or sequester security. (1) No security which is the subject of any agreement or arrangement regarding acquisition, or which is acquired or to be acquired, in contravention of the provisions of this chapter o…

insurance company -- Commissioner's powers when acting as supervisor -- Cooperation with other regulatory officials -- Agreements and documentation - - Commissioner's expenses. (1) (a) The commissioner may: 1. Act as the groupwide supervisor for any internationally active insuran…