Title XXV, Business and Financial Institutions

Catchline at repeal: Conversion or reinsurance.

Catchline at repeal: Members' share of assets.

Catchline at repeal: Amendment of articles of incorporation.

There is continued within the Public Protection Cabinet a department to be known as the Department of Insurance.

department. (1) The commissioner is the head of the Department of Insurance. (2) The commissioner shall be appointed by the Governor with the consent of the Senate, for a term not to exceed four (4) years on the basis of his or her merit and fitness to perform the duties of the o…

(1) Within thirty (30) days from the time of notice of his or her appointment and before entering upon his or her duties, the commissioner shall take the oath of office as required by KRS 62.010. (2) Within the same period the commissioner shall execute and deliver a surety bond,…

(1) The Department of Insurance shall have an official seal, in the form and design as so in use and on file in the office of the Secretary of State immediately prior to June 18, 1970. (2) Every certificate or license issued by the commissioner shall bear the seal of the departme…

Every certificate, assignment or conveyance executed by the commissioner, relating to the business of insurance or an insurer, in pursuance of authority conferred by law, and sealed with the seal, shall be received as evidence, and may be recorded in the same manner and with the …

The commissioner may appoint deputies with the prior written approval of the Governor as provided in KRS 12.050.

There is created within the Division of Consumer Protection the position of ombudsman. Effective:June 29, 2017

(1) There is created within the Department of Insurance the position of early warning analyst. (2) The commissioner shall appoint a qualified person to serve as early warning analyst. (3) The early warning analyst shall detect domiciled companies and companies doing a significant…

(1) The commissioner may from time to time contract for and procure, on a fee or independent contract basis, such additional actuarial, examination, rating, and other technical and professional services as he or she may require for the discharge of his or her duties, subject to a…

(1) The commissioner or any deputy, examiner, actuary, assistant or employee of the department, shall not be connected with the management of, or be financially interested, directly or indirectly, in any insurer, insurance agency or broker, or insurance transaction except as poli…

(1) The commissioner may delegate to any deputy, assistant, counsel, actuary, examiner or employee of the department, the exercise or discharge in the commissioner's name of any power, duty or function, whether ministerial, discretionary or of whatever character, vested in or imp…

(1) The commissioner shall personally supervise the operations of the department. (2) The commissioner shall examine and inquire into violations of this code, shall enforce the provisions of this code with impartiality and shall execute the duties imposed upon him or her by this …

that of federally regulated financial institutions. Notwithstanding any other provision of law, to the extent authorized by the commissioner by administrative regulation, a licensed agent, producer, broker, or insurer has the power to engage in any insurance activity that financi…

(1) The commissioner may make reasonable rules and regulations necessary for or as an aid to the effectuation of any provision of this code. No such rule or regulation shall extend, modify, or conflict with any law of this state or the reasonable implications thereof. (2) No pena…

(1) In general, orders and notices of the commissioner shall be issued in accordance with this chapter. Notices, recommended orders, and final orders issued as a result of an administrative hearing shall be issued in accordance with KRS Chapter 13B. (2) Orders and notices of the …

(1) The commissioner may invoke the aid of the courts through injunction or other proper process, mandatory or otherwise, to enjoin any existing or threatened violation of any provision of this code, or to enforce any proper order made by him or her or action taken by him or her.…

Any person who willfully violates any rule, regulation, subpoena, or order of the commissioner or any provision of this code shall be subject to suspension or revocation of certificate of authority or license, or administrative fine or both.

(1) The commissioner shall carefully preserve in the department and in permanent form, a correct account of all his or her transactions and of all fees and moneys received by him or her by virtue of his or her office, together with all financial statements, examination reports, c…

(1) As used in this section, "licensee" means an individual or entity that holds a license issued by the commissioner or department. (2) Each written and signed complaint received by the department shall be recorded by the department, including the subsequent disposition thereof,…

(1) The commissioner shall review, and investigate where applicable, all written complaints involving entities or individuals engaged in the business of insurance in Kentucky. (2) The commissioner shall send a copy of the complaint to the entity or individual and the entity or in…

evidence. (1) Upon the request of any person and payment of the applicable fee, the commissioner shall furnish a certified copy of any record or document in the department which is then subject to public inspection, as provided in subsection (3) of KRS 304.2-150. (2) Reproduction…

(1) The commissioner may have the directory of authorized insurers, of licensed insurance representatives, license examination material, insurance laws and related laws and regulations under his or her administration published in pamphlet form from time to time, and may fix a pri…

(1) The commissioner may enter into interstate compacts for issuing certificates of authority to insurers if the commissioner determines that: (a) Each state participating in the compact has requirements for issuing certificates of authority that provide protections substantially…

(1) The commissioner may furnish on request of the insurance supervisory official of any state, province or country any information which it is the commissioner's duty by law to ascertain respecting authorized insurers. (2) The commissioner may be a member of the National Associa…

(1) The provisions of this section apply to all domestic, foreign, and alien insurers, fraternal benefit societies, health maintenance organizations, and nonprofit hospital, medical-surgical, dental, and health service corporations authorized to transact business pursuant to this…

(1) As used in KRS 304.2-210 to 304.2-300, unless the context requires otherwise, "examination workpaper" means a written or recorded document, note, memorandum, critique, comment, recommendation, or other information copied, established, created, or retained by the commissioner …

others. For the purpose of ascertaining compliance with law, or relationships and transactions between any person and any insurer or proposed insurer, the commissioner may as often as reasonably necessary examine the accounts, records, documents, and transactions pertaining to or…

to records -- Corrections -- Penalty. (1) Whenever the commissioner determines to examine the affairs of any person, he or she shall designate one (1) or more examiners, which may include analysts, and instruct them as to the scope of the examination. The examiner or analyst shal…

(1) If the commissioner deems it necessary to value any asset involved in such an examination, he or she may make written request of the person being examined to appoint one or more appraisers who by reason of education, experience or special training and disinterest, are compete…

proceedings -- Confidentiality. (1) Upon completion of an examination, the examiner in charge shall make a true report thereof which shall comprise only facts appearing upon the books, records or other documents of the person examined, or as ascertained from the sworn testimony o…

-- Confidentiality -- Public inspection -- Regulatory action. (1) The commissioner shall deliver a copy of the examination report to the person examined, together with a notice affording the person twenty (20) days or additional reasonable period as the commissioner for good caus…

disclosure. The report of examination of a domestic insurer, although filed in the department as provided in KRS 304.2-260, shall nevertheless not be for public inspection except as to those portions of the report showing the insurer's current financial condition. The examination…

For the conduct of or assistance in examinations under this chapter the commissioner shall appoint as examiners only individuals who by reason of education, experience, or special training are competent to perform the duties and fulfill the responsibilities of an insurance examin…

(1) The expense of examination shall be borne by the person examined. Such expense shall include only the reasonable and proper lodgings, meals and travel expenses of the commissioner and the commissioner's examiners and assistants, including expert assistance, reasonable compens…

(1) There is created in the State Treasury the "Examination Expense Revolving fund" for the use of the department. The commissioner shall promptly deposit all funds received under a statute requiring examination expenses to be paid by the party examined and deposited with the Sta…

(1) The commissioner may hold a hearing, without request by others, for any purpose within the scope of this code. (2) The commissioner shall hold a hearing: (a) If required by any other provision of this code; or (b) Upon written application for a hearing by a person aggrieved b…

(1) Notice of hearings shall be given in accordance with the provision of this chapter and KRS Chapter 13B. If the persons to be given notice are not specified in the provision pursuant to which the hearing is held, the commissioner shall give notice to all persons whose pecuniar…

(1) The commissioner or an authorized designee conducting a hearing, examination, or investigation by his or her authority shall have power to subpoena witnesses, compel their attendance, administer oaths, examine any person under oath relative to the subject of the hearing, exam…

(1) If any person asks to be excused from attending or testifying or from producing any books, papers, records, contracts, documents, or other evidence in connection with any examination, hearing, or investigation being conducted by the commissioner, his or her deputy or examiner…

(1) In the conduct of hearings under this code and making a final order thereon, the commissioner shall act in a quasijudicial capacity and in accordance with the provisions of this chapter and KRS Chapter 13B. (2) With respect to hearings held concerning merger, consolidation, b…

(1) An appeal from the commissioner shall be taken only from a final order on hearing and in accordance with KRS Chapter 13B. (2) The appeal shall be granted as a matter of right, and shall be taken to the Franklin Circuit Court.

(1) There is created in the State Treasury a trust fund designated the "Insurance Regulatory Trust Fund" to which shall be credited all payments received under KRS 304.4-010. (2) The moneys so received and deposited in the insurance regulatory trust fund shall be appropriated for…

(1) It is the responsibility of the department, which is charged with the administration of the insurance regulatory trust fund, to make such moneys available for investment as fully as is consistent with the cash requirements of the fund and to authorize investment of such money…

When there exists in the insurance regulatory trust fund a deficiency which would render such fund insufficient to meet the department's funding requirements, the secretary of the Finance and Administration Cabinet may order a transfer of moneys from another fund in the State Tre…

Reimbursement. Nothing in KRS 304.2-400 to 304.2-420 shall prevent continuing the practice of paying any of the direct or indirect expenses incurred by the department, including, but not limited to, those involving salaries, retirement, and Social Security of officers, employees,…

(1) As used in this section, "insurer" means assessment or cooperative insurers, insurers, fraternal benefit societies, nonprofit hospital, medical-surgical, dental, and health service corporations, health maintenance organizations, and prepaid dental plan organizations. (2) If t…

Administrative regulations. (1) As used in this section: (a) "Insurable dwelling": 1. Means a dwelling located or situated on, or affixed to, residential real estate; and 2. Includes a single-family or multifamily dwelling, including a modular home; (b) "SKH approved contractor" …