Title XXV, Business and Financial Institutions

Catchline at repeal: Dividends payable to real party.

Catchline at repeal: Assignment of policies.

Catchline at repeal: Payment discharges insurer.

Catchline at repeal: Minor may give acquittance.

Catchline at repeal: Proceeds from disability policy, liability for debts.

Catchline at repeal: Who entitled to proceeds from life policy; premiums paid in fraud of creditors.

Catchline at repeal: Proceeds from group life policy liability for debts.

Catchline at repeal: Annuity contracts, liability of proceeds for debts; rights and benefits not assignable; defined.

Catchline at repeal: Rights of married women in life insurance.

Catchline at repeal: Forms for proof of loss furnished.

Catchline at repeal: Insurer's administrative acts on claims not waivers.

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…

A life insurer may lend to a policyholder on the security of the cash surrender value of the policyholder's policy a sum not exceeding the legal reserve that the insurer is required to maintain on the policy.

this subtitle. (1) Solely for the purpose of acquiring investments that exceed the quantitative limitations of KRS 304.7-403, 304.7-405, 304.7-407, 304.7-409, 304.7-411, 304.7- 413, 304.7-415, and 304.7-417, an insurer may acquire under this subsection an investment, or engage in…

KRS 304.7-451 to 304.7-473 shall apply to the investments and investment practices of domestic property and casualty, title, financial guaranty, and mortgage guaranty insurers, of domestic insurers and United States branches of alien property and casualty, financial guaranty, and…

Commissioner's actions if insurer is not in compliance. (1) Subject to all other limitations and requirements of this subtitle, a property and casualty, financial guaranty, mortgage guaranty, or accident and health insurer shall maintain an amount at least equal to one hundred pe…

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…