Title XXV, Business and Financial Institutions

Release. For the protection of the policyholders against loss during periods of extreme economic contraction, each mortgage guaranty insurer shall maintain a liability referred to as a statutory contingency reserve. The statutory contingency reserve shall be a separate fund, in a…

(1) As to casualty insurance transacted by it, each insurer shall maintain at all times reserves in an amount estimated in the aggregate to provide for payment of all losses and claims incurred, whether reported or unreported, which are unpaid and for which the insurer may be lia…

The case basis method shall be used to determine mortgage guaranty loss reserves, which shall include a reserve for claims reported and unpaid and a reserve for claims incurred but not reported.

KRS 304.6-130 to 304.6-180, inclusive, shall be known as the "Standard Valuation Law."

valuation. (1) (a) For policies and contracts issued prior to the operative date of the valuation manual, the commissioner shall annually value, or cause to be valued, the reserve liabilities, hereinafter called reserves, for all outstanding life insurance policies and annuity an…

As used in KRS 304.6-130 to 304.6-180, unless the context requires otherwise, the following definitions shall apply on or after the operative date of the valuation manual, as defined in subsection (11) of this section: (1) "Accident and health insurance" means contracts that inco…

(1) For purposes of this section: (a) "Confidential information" means: 1. A memorandum in support of an opinion, submitted pursuant to KRS 304.6-171, and any other documents, materials, and other information, including but not limited to all working papers and copies created, pr…

A company shall submit mortality, morbidity, policyholder behavior, or expense experience, and other data as prescribed in the valuation manual.

A specific product form or product line of a domestic company that is licensed and doing business only in Kentucky shall be exempt from the requirements of KRS 304.6-143 if: (1) The commissioner has in his or her discretion issued an exemption in writing to the company and has no…

(1) This subsection applies only to policies and contracts issued prior to January 1, 1948, or such earlier date after June 13, 1944, as shall have been elected by an insurer as the date on and after which it would comply with the standard nonforfeiture law. Except as otherwise p…

date of the valuation manual -- Application of KRS 304.6-130(2) minimum standard of valuation. (1) For accident and health insurance contracts issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of…

Application of KRS 304.6-130(2) minimum standard of valuation. (1) For policies issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual shall be the minimum standard of valuation required under KRS 304.6-130(2), except as pro…

(1) The interest rates used in determining the minimum standard for the valuation of: (a) All life insurance policies issued in a particular calendar year, on or after the effective date of KRS 304.15-342; (b) All individual annuity and pure endowment contracts issued in a partic…

(1) Except as otherwise provided in KRS 304.6-141, 304.6-155, and 304.6-180, reserves according to the commissioners reserve valuation method, for the life insurance and endowment benefits of policies providing for a uniform amount of insurance and requiring the payment of unifor…

(1) A company shall establish reserves using a principle-based valuation as specified in the valuation manual that meets the following conditions for policies or contracts: (a) Quantification of the benefits and guarantees, and the funding associated with the contracts and their …

This section shall apply to all annuity and pure endowment contracts other than group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer (including a partnership or sole proprietorship)…

(1) In no event shall an insurer's aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, which are subject to subsection (2) of KRS 304.6-140, be less than the aggregate reserves calculated in accordance with the methods set forth…

(1) Reserves for any category of policies, contracts, or benefits as established by the commissioner, which are subject to subsection (2) of KRS 304.6-140, may be calculated, at the option of the insurer, according to any standards which produce greater aggregate reserves for suc…

reserves and related items and compliance with state law -- Opinions to be submitted annually -- Form and substance of opinions -- Administrative regulations. (1) Subsections (2) to (5) of this section shall become operative at the end of the first full calendar year following th…

(1) If in any contract year the gross premium charged by any life insurer on any policy or contract, which is subject to subsection (2) of KRS 304.6-140, is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve the…

(1) A mortgage loan shall not be made or acquired by a domestic insurer unless an appraisal has been made by a competent appraiser for the purpose of the investment which meets the following requirements: (a) The appraisal shall be made prior to the date that the insurer commits …

Except as provided in KRS 304.7-330, this subtitle applies to domestic insurers only.

As used in this subtitle: (1) "Acceptable collateral" means: (a) As to securities lending transactions, and for the purpose of calculating counterparty exposure amount, cash, cash equivalents, letter of credit, direct obligations of, or securities that are fully guaranteed as to …

assets -- Computation of limitations based on admitted assets -- Documentation -- Agreements to purchase securities in advance of their issuance -- Order to limit investment practice. (1) (a) Insurers may acquire, hold, or invest investments or engage in investment practices as s…

insurance, or annuity funds -- Specified separate accounts of insurer. (1) The amounts allocated to each separate account established by the insurer in connection with a pension, retirement or profit-sharing plan, life insurance or an annuity pursuant to KRS 304.15-390 together w…

(1) A title insurer may also have invested funds in an amount not exceeding fifty percent (50%) of its paid-in capital stock and its surplus, in its abstract plant and equipment and in stocks of abstract companies. (2) A title insurer may also invest and have invested at any one …

(1) An insurer may invest in venture capital funds or pools organized to encourage equity capital investment in Kentucky, encourage the establishment and expansion of small business and industry, and encourage the development of new job opportunities in Kentucky. (2) The Kentucky…

Nothing in this subtitle shall be deemed to prohibit an insurer from making an investment otherwise authorized under this subtitle, because the investment is convertible into other securities in which the insurer is not permitted to invest under this subtitle, or because the insu…

(1) An insurer may enter into an agreement for the purpose of protecting its interests in securities lawfully held by it, or for the purpose of reorganization of the corporation which issued or is obligated on account of the securities, and may deposit the securities with a commi…

The investments of a foreign or alien insurer shall be as permitted by the laws of its domicile if of a quality substantially equal to that required under this subtitle for domestic insurers.

(1) All obligations having a fixed term, rate, and face value held by an insurer authorized to do business in this state may, if amply secured and not in default either as to principal or interest, be valued as follows: if acquired at face value, at the face value; if acquired ab…

Records -- Administrative regulations. (1) As used in this section: (a) "Clearing corporation" shall be defined as provided in KRS 355.8-102 except that, with respect to securities issued by institutions organized or existing under the laws of any foreign country or securities us…

(1) An insurer's board of directors shall adopt a written plan for acquiring and holding investments and for engaging in investment practices that specifies guidelines as to the quality, maturity, diversification of investments, and other specifications including investment strat…

An insurer shall not, directly or indirectly: (1) Invest in an obligation or security or make a guarantee for the benefit of or in favor of an officer or director of the insurer, except as provided in KRS 304.7-365; (2) Invest in an obligation or security, make a guarantee for th…

interest. (1) (a) Except as provided in subsection (2) of this section, an insurer shall not, without the prior written approval of the commissioner, directly or indirectly: 1. Make a loan to or invest in an officer or director of the insurer or a person in which the officer or d…

The commissioner may promulgate administrative regulations implementing the provisions of this subtitle.

KRS 304.7-401, 304.7-403, 304.7-405, 304.7-407, 304.7-409, 304.7-411, 304.7-413, 304.7-415, 304.7-417, 304.7-419, 304.7-421, and 304.7-423 shall apply to the investments and investment practices of domestic life and health insurers, and of United States branches of alien life and…

(1) (a) Except as otherwise specified in this subtitle, an insurer shall not acquire, directly or indirectly through an investment subsidiary, an investment under this subtitle if, as a result of and after giving effect to the investment, the insurer would hold more than three pe…

Subject to the limitations of subsection (6) of this section, an insurer may acquire rated credit instruments: (1) Subject to the limitations of KRS 304.7-403(2), but not the limitations of KRS 304.7-403(1), an insurer may acquire rated credit instruments issued, assumed, guarant…

(1) An insurer may acquire investments in investment pools that: (a) Invest only in: 1. Obligations that are rated 1 or 2 by SVO or have an equivalent of an SVO 1 or 2 rating or, in the absence of a 1 or 2 rating or equivalent rating, the issuer has outstanding obligations with a…

(1) Subject to the limitations of KRS 304.7-403, an insurer may acquire equity interests in business entities organized under the laws of any domestic jurisdiction. (2) An insurer shall not acquire an investment under this section if, as a result of and after giving effect to the…

partnerships, joint ventures, trust certificates, and similar instruments. (1) (a) Subject to the limitations of KRS 304.7-403, an insurer may acquire tangible personal property or equity interests therein located or used wholly or in part within a domestic jurisdiction either di…

mortgage loans and credit lease transactions -- Real estate -- Ratios relating to aggregate amount of investments. (1) (a) Subject to the limitations of KRS 304.7-403, an insurer may acquire, either directly or indirectly through limited partnership interests and general partners…

transactions. An insurer may enter into securities lending, repurchase, reverse repurchase, and dollar roll transactions with business entities, subject to the following requirements: (1) The insurer's board of directors shall adopt a written plan that is consistent with the requ…

(1) Subject to the limitations of KRS 304.7-403, an insurer may acquire foreign investments, or engage in investment practices with persons of or in foreign jurisdictions, of substantially the same types as those that an insurer is permitted to acquire under this subtitle, other …

exposure amounts. An insurer may, directly or indirectly through an investment subsidiary, engage in derivative transactions under this section under the following conditions: (1) (a) An insurer may use derivative instruments under this section to engage in hedging transactions a…