Title XXV, Business and Financial Institutions

(1) A captive insurer shall engage a manager who is approved by the commissioner. (2) The captive manager shall maintain the books and records of the captive insurer's business, transactions, and affairs at a location that is in this state or shall make them available to the comm…

be set by administrative regulations. The commissioner may promulgate administrative regulations to set minimum standards for the formation, structure, examination, and operation of a special purpose captive insurer or an agency captive insurer.

Notification to and approval of commissioner to take material action -- Loans to parent company or affiliates. (1) If there is any change in the current operations or condition of a captive insurer that materially impacts the financial condition or management of the captive insur…

Conditions. A sponsored captive insurer may establish and maintain one (1) or more protected cells to insure risks of one (1) or more participants, subject to the following conditions: (1) The owners of a sponsored captive insurer shall be limited to its participants and sponsors…

in Kentucky before July 14, 2000 -- Exception. This subtitle shall not apply to any foreign captive insurer lawfully transacting the business of insurance in Kentucky prior to July 14, 2000, unless the foreign captive insurer petitions the commissioner requesting that this subtit…

Catchline at repeal: Record of deposits.

Catchline at repeal: Inventory; certificate.

Catchline at repeal: Valuation; replenishment.

Catchline at repeal: Voluntary excess deposit.

Catchline at repeal: Dividends on, and exchange of deposited assets; collection by commissioner.

Catchline at repeal: Levy of execution; satisfaction from deposited assets.

Catchline at repeal: Release of deposit.

It is intended that certain insurance coverages may come within the definitions of two (2) or more kinds of insurance as defined in this chapter, and the inclusion of such coverage within one (1) definition shall not exclude it as to any other kind of insurance within the definit…

"Life insurance" is insurance on human lives. The transaction of life insurance includes the granting of endowment benefits, additional incidental benefits in the event of death by accident or accidental means, additional incidental benefits in the event of loss of eyesight or li…

An "annuity" is a contract under which obligations are assumed with respect to periodic payments for a specific term or terms, or where the making or continuance of all or some of such payments, the amount of any such payment is dependent upon the continuance of human life, excep…

"Health insurance" is insurance of human beings against bodily injury, disablement, or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto.

"Property insurance" is insurance on real or personal property of every kind and of every interest therein against loss or damage from any and all hazard or cause, and against loss consequential upon such loss or damage, other than noncontractual legal liability for any such loss…

"Surety insurance" includes: (1) Fidelity insurance, which is insurance guaranteeing the fidelity of persons holding positions of public or private trust. (2) Insurance guaranteeing the performance of contracts, other than insurance policies, and guaranteeing and executing bonds,…

(1) "Casualty insurance" includes: (a) Vehicle insurance. Insurance against loss of or damage to any land vehicles or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any hazard or caus…

and "marine protection and indemnity insurance" defined. (1) As used in this chapter, "inland marine insurance" means marine and transportation insurance that may cover or include: (a) 1. Imports, wherever the property may be and without restriction as to time, if the coverage in…

"Title insurance" is insurance of owners of property or others having an interest therein, or liens or encumbrances thereon, against loss by encumbrance, or defective title, or invalidity, or adverse claim to title.

"Mortgage guaranty insurance" is insurance against financial loss by reason of nonpayment of principal, interest, rent or other sums agreed to be paid under the terms of any note, bond, lease, or other evidence of indebtedness constituting a charge on real estate, or secured by m…

A "multiple line" insurer is an insurer which transacts any two (2) or more of the following kinds of insurance, health, property, surety, casualty, marine and transportation.

(1) No insurer shall retain any risk on any one (1) subject of insurance, whether located or to be performed in this state or elsewhere, in an amount exceeding ten percent (10%) of its surplus to policyholders. (2) A "subject" of insurance for the purposes of this section, as to …

"Reinsurance" is a contract under which an originating insurer (called the "ceding" insurer) procures insurance for itself in another insurer (called the "assuming" insurer or the "reinsurer") with respect to part or all of an insurance risk of the originating insurer.

doing business in Kentucky and other states -- Trust for payment of claims -- Credit allowed when assuming insurer is certified and secures obligations -- Criteria for allowing credit to assuming insurer in reciprocal jurisdiction -- Qualified jurisdictions -- Credit allowed when…

Complete copies of reinsurance treaties and contracts shall, at his request, be filed with and approved by the commissioner.

(1) An authorized insurer may reinsure its risks, or any part of its risks, in any insurer authorized to do business in this state, in any other state of the United States, or in the District of Columbia, or in any alien insurer. (2) An authorized insurer may reinsure an insurer …

abortions except by optional rider. (1) No health insurance contracts, plans or policies delivered or issued for delivery in the state shall provide coverage for elective abortions except by an optional rider for which there must be paid an additional premium. For purposes of thi…

(1) As used in this chapter, "disability income insurance" means insurance that provides for periodic payments, weekly, monthly, or otherwise, for a specified period during the continuance of disability resulting from sickness, injury, or a combination of sickness and injury. (2)…

(1) As used in this chapter, "paid family leave insurance" means insurance issued to an employer related to a benefit program provided to an employee to pay for a percentage or portion of the employee's income loss caused by absences that are not based on the employee's disabilit…

The purpose of this subtitle is to establish minimum financial standards for workers' compensation self-insured groups to ensure that self-insured groups are providing adequate coverage for member employers' risks and liabilities under KRS Chapter 342 for injured employees of the…

contract, sue, and be sued -- Commissioner to promulgate administrative regulations -- Governor may assign regulatory authority -- Limitation on application of KRS Chapter 304. (Effective until July 15, 2027) (1) The commissioner may authorize twenty (20) or more employers with c…

As used in this subtitle, unless the context requires otherwise: (1) "Adjuster" means any person required to be licensed as an adjuster under Subtitle 9 of this chapter, who for a fee or compensation investigates or settles claims arising under contracts issued by a workers' comp…

The provisions of this subtitle apply to a group or bona fide trade association of employers subject to the provisions of KRS Chapter 342, which may include employers voluntarily complying with the provisions of KRS Chapter 342, who join together to self- insure against workers' …

insurance for workers' compensation coverage -- Certificates of filing issued by Department of Workers' Claims remain in effect unless revoked or suspended. (1) Except for an activity arising in the creation of a workers' compensation self-insured group, a person or entity shall …

Deadline. (1) A proposed workers' compensation self-insured group seeking initial certification shall file with the commissioner an application for a certificate of filing accompanied by a nonrefundable filing fee of six hundred dollars ($600). An application for initial certific…

Certification as a workers' compensation self-insured group shall be granted only if the commissioner finds that the applicant has complied with the provisions of this subtitle, paid the application fee, and met the following conditions: (1) All persons responsible for the conduc…

workers' compensation self-insured groups. (1) A certificate of filing shall remain in effect until terminated at the request of the self-insured group or suspended or revoked by the commissioner in accordance with the provisions of this subtitle. (2) The commissioner shall not g…

(1) To obtain and maintain a certificate of filing, a workers' compensation self-insured group shall have sufficient financial strength to pay all benefits for compensation required by KRS Chapter 342 for risks covered by the group, including known claims and expenses and incurre…

commissioner -- Release -- Commissioner to approve custodian bank or trust company for security deposits -- Qualifications for approval. (1) The group shall provide security deposits to the commissioner on a form prescribed by the commissioner in an amount not less than two hundr…

compensation self-insured groups -- Approval by commissioner -- Investments -- Financing of payments by governmental entities. (1) As used in this section, "nationally recognized statistical rating organization" or "NRSRO" means a credit rating agency approved by the United State…

insurance coverage -- Statement of financial condition. (1) The information and reports required by this section shall be filed by the self- insured group with the commissioner on an annual basis. (2) Within one hundred twenty (120) days from the end of the self-insured group's f…

A workers' compensation self-insured group shall notify the commissioner immediately of any material change in the information required to be filed under this subtitle or in the manner of its compliance with KRS Chapter 342.

-- Appointment of agent optional. (1) An agent of a workers' compensation self-insured group shall be licensed as an agent with casualty line of authority in accordance with Subtitle 9 of this chapter. (2) Workers' compensation self-insured groups shall not be required to appoint…

commissioner. The commissioner or his or her designee shall have power to examine the financial condition, affairs, and management of any workers' compensation self-insured group subject to the provisions of this subtitle. He or she shall have free access to all the books, papers…

A workers' compensation self-insured group issued a certificate of filing under this subtitle is deemed to have appointed the Secretary of State as its attorney to receive service of legal process issued against it in Kentucky. This appointment shall be irrevocable, shall bind an…

Prohibited acts -- Power to contract, sue, and be sued -- Contracts for administration of group. (1) Each self-insured group shall be operated by a board of trustees. Except for a self- insured group formed by governmental entities, the board of trustees for each self- insured gr…

cancellation of member by group -- Voluntary withdrawal -- Liability on termination of membership, insolvency, or bankruptcy. (1) An employer joining a workers' compensation self-insured group after the group has been issued a certificate of filing shall submit an application for…

Except for governmental entities, the trustees shall not accept an employer as a member unless the employer has a net worth of at least two (2) times its estimated annual premium, unless the employer pays its full estimated annual premium in advance. The trustees shall not accept…