Title XXV, Business and Financial Institutions

Investments in certain rating categories -- Canadian investments. (1) 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 …

(1) Subject to the limitations of KRS 304.7-455(4) to (6), but not to the limitations of KRS 304.7-455(1) to (3), an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by: (a) The United States; or (b) A government sponsored enterprise of the Uni…

(1) An insurer may acquire investments in investment pools that: (a) Invest only in: 1. Obligations that are rated 1 or 2 by the 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 wi…

(1) Subject to the limitations of KRS 304.7-455, 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 304.7-455, 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 release transactions -- Real estate -- Ratios relating to aggregate amount of investments. (1) Subject to the limitations of KRS 304.7-455, an insurer may acquire, either directly or indirectly through limited partnership interests and general partnershi…

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 requi…

(1) Subject to the limitations of KRS 304.7-455, 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. (1) An insurer may, directly or indirectly through an investment subsidiary, engage in derivative transactions under this section under the following conditions: (a) An insurer may use derivative instruments under this section to engage in hedging transactions a…

KRS 304.7-451 to 304.7-473. (1) An insurer may acquire under this section investments, or engage in investment practices, of any kind that are not specifically prohibited by this subtitle, or engage in investment practices, without regard to any limitation in KRS 304.7-455, 304.7…

(1) All deposits of assets of insurers required or permitted under this code and made in this state shall be made and maintained with the commissioner. (2) In addition to deposits required for an insurer's authority to transact insurance in this state, an insurer may deposit and …

(1) All deposits shall be held by the commissioner in trust for the benefit and protection of all of the insurer's policyholders and creditors in the United States. (2) The deposit of a domestic insurer shall further be security for payment of taxes, assessments, forfeitures, fin…

Kinds of assets may be deposited by an insurer as follows: (1) Title to unencumbered real property lawfully acquired and held by the insurer under this code. (2) Lawful money of the United States, and other securities of kinds in which the insurer may lawfully invest its funds un…

(1) The commissioner may accept the home office real property of a domestic insurer as a part of any deposit of assets required of the insurer under this code. For this purpose the insurer shall convey such real property by deed to the commissioner, and the deed shall be duly rec…

(1) The insurer's policyholders and creditors in the United States, and this state and other states in which the insurer is authorized to transact insurance, shall have a first lien upon other real property, of which the evidence of the insurer's title is deposited by the insurer…

The Commonwealth of Kentucky shall not be liable for the safe custody of any assets deposited by an insurer.

(1) The commissioner shall designate at least one (1) bank or trust company in each county of this state containing a city of the first class or a consolidated local government and such other banks as proposed by the insurer and approved by the commissioner which vaults shall be …

Notwithstanding any other provision of law, the commissioner may cause any or all deposits of assets of insurers required or permitted under this code and maintained in this state to be made and maintained in trust with depositories designated pursuant to KRS 304.8-090(1) under t…

As to each insurer making or having a deposit the commissioner shall keep a complete record thereof showing: (1) The particular assets so deposited; (2) The face value, if any, of any asset, and the value thereof as determined by the commissioner; (3) Date of deposit, and place t…

(1) The commissioner may at any time inventory assets on deposit as to any insurer. Upon request of the insurer the commissioner shall make an inventory at the insurer's expense, and shall furnish the insurer a copy thereof. All inventories shall be made in the presence of the co…

(1) All assets deposited shall be valued by the commissioner when deposited, such valuation to be determined in accordance with the applicable provisions of this code. (2) If at any time the commissioner finds that the value of assets on deposit by an insurer is less than the amo…

An insurer may deposit and maintain on deposit assets in value exceeding the amount otherwise required under this code, for the purpose of absorbing fluctuations in value of its required deposit, and to facilitate exchange and substitution of assets in such required deposit. Duri…

commissioner. (1) While solvent and complying with this code an insurer shall be entitled: (a) To collect and receive interest, dividends, and payments accruing upon assets so held on deposit for its account; and (b) From time to time, to exchange and substitute for any of such a…

(1) Except as provided in subsection (2) of this section, every domestic life insurer shall, within ninety (90) days after the net cash value of each policy in force has been ascertained as required by law, deposit with the commissioner for the security and benefit of its policyh…

(1) Except as provided in subsection (2) of this section, no judgment creditor or other claimant of an insurer shall have the right to levy upon any of the assets held in this state as a deposit for the protection of the insurer's policyholders or policyholders and creditors. (2)…

(1) Any required deposit shall be released, in addition to circumstances already provided for, in these instances only: (a) Upon extinguishment of substantially all liabilities of the insurer for the security of which the deposit is held, by reinsurance contract or otherwise; (b)…

(1) Assets shall not be removed from the bank or trust company wherein the assets are deposited, except upon the written order of at least two (2) officers authorized for the purpose by the insurer's board of directors or other governing body, which order must have been approved …

(1) Insurers maintaining deposits of assets in this state under this subtitle, shall pay into the examination expense revolving fund as provided in Subtitle 2 of this chapter, moneys sufficient to pay travel and other necessary expenses of the commissioner related to the maintena…

This subtitle shall relate to all insurers and kinds of insurance.

As used in this subtitle: (1) "Agent" means a person who sells, solicits, or negotiates insurance or annuity contracts; (2) "Appointment" means a notification filed with the insurance department that an insurer has established an agency relationship with a producer; (3) "Appointm…

(1) Unless denied a license according to KRS 304.9-440, applicants who have met the requirements for the license in accordance with this subtitle, shall be issued the applicable license. (2) An insurance agent may receive qualification for a license in one (1) or more of the foll…

(1) Any insurer shall be liable for the acts of its agents and adjusters when the agents or adjusters are acting: (a) In their capacity as representatives of the insurer; and (b) Within the scope of their authority. (2) Licensed individuals designated by a business entity to exer…

(1) A "consultant" is a person, who as an independent contractor in relation to a client, for fee or compensation other than from an insurer, in any manner advises or purports to advise, any person actually or prospectively insured, or named or to be named as beneficiary, or havi…

As used in KRS 304.9-052 and 304.9-371 to 304.9-377: (1) (a) An "administrator" is an individual or business entity that collects charges or premiums from, or that adjusts or settles claims on, residents of this state in connection with life insurance, health insurance, annuities…

(1) No individual or business entity shall in this state be, act as, or hold himself or herself out to be an administrator unless then licensed as an administrator by the commissioner. (2) For the protection of the people of this state, the commissioner shall not issue, continue,…

(1) (a) In order to conduct business in this state, a pharmacy benefit manager shall first obtain a license from the commissioner. The license shall be in lieu of an administrator's license as required by KRS 304.9-052. (b) A licensed pharmacy benefit manager performing utilizati…

issuance -- Disciplinary actions concerning license -- Administrative regulations -- Fees. (1) (a) Upon receipt of a completed application, fee, and other documentation and information required under KRS 304.9-053, the commissioner shall make a review of each applicant for a phar…

Chapter 304 -- Administrative regulations. (1) Pharmacy benefit managers shall be subject to this subtitle and to the provisions of Subtitles 1, 2, 3, 4, 12, 14, 17, 17A, 17C, 18, 25, 32, 38, 47, and 99 of KRS Chapter 304 to the extent applicable and not in conflict with the expr…

(1) Except as provided in KRS 304.52-030, an individual or business entity shall not sell, solicit, or negotiate insurance in this state unless duly licensed as the appropriate insurance producer for that line of authority in accordance with this subtitle or Subtitle 10 of this c…

(1) A "managing general agent" is an individual or business entity appointed by an insurer to solicit applications from agents for insurance contracts or to negotiate insurance contracts on behalf of an insurer and, if authorized to do so by an insurer, to effectuate and counters…

(1) Nothing in this subtitle shall be construed to require an insurer to obtain a license as an insurance producer. As used in this section, the term "insurer" does not include an insurer's officers, directors, employees, subsidiaries, or affiliates. (2) A license as an insurance…

(1) The purpose of a license issued under this subtitle to an insurance producer is to authorize and enable the licensee actively and in good faith to engage in the business of insurance with respect to the general public, and to facilitate the public supervision of such activiti…

(1) An individual applying for an agent license shall make application to the commissioner on the uniform individual application or other application prescribed by the commissioner. Before approving the application, the commissioner shall find that the applicant: (a) Is at least …

Administrative regulations. (1) The following persons shall be exempt from the prelicensing course of study requirements for specific lines of authority of KRS 304.9-105(1)(e)1.: (a) Persons holding a Chartered Life Underwriter (CLU) designation for a life line of authority; (b) …

(1) Each applicant for license as a resident licensee shall be qualified to designate and shall designate Kentucky as the applicant's home state at the date of application for the license and shall maintain that eligibility throughout the duration of the license. (2) Except as pr…

(1) A business entity acting as an agent is required to obtain an agent license. Application shall be made using the uniform business entity application or other application prescribed by the commissioner. Before approving the application of a business entity as a resident or as …