Title XXV, Business and Financial Institutions

(1) Before any security may be issued as an exempt security under KRS 292.400(9) or (12), a claim of exemption must first be filed with the commissioner and the commissioner by order shall not have determined that the exemption is unavailable within the next ten (10) full busines…

(1) In any proceeding under this chapter, the burden of proving an exemption or an exception from a definition is upon the person claiming it. (2) The commissioner may require any person, who is selling or offering for sale or who is about to sell or offer for sale or who has sol…

(1) Every applicant for registration as a broker-dealer, agent, investment adviser, or investment adviser representative under this chapter and every issuer which proposes to offer a security in this state through any person acting on an agency basis in the common law sense shall…

It is unlawful for any person to make or cause to be made, in any document filed with the commissioner or the commissioner's designee or in any proceeding under this chapter, any statement which is, at the time and in the light of the circumstances under which it is made, false o…

(1) Neither the fact that an application for registration under KRS 292.330 or a registration statement under KRS 292.350, 292.360, or 292.370 has been filed, nor the fact that a person or security is effectively registered, constitutes a finding by the commissioner that any docu…

(1) The commissioner in his or her discretion: (a) May make such public or private investigations within or outside of this state as he deems necessary to determine whether any registration should be granted, denied, or revoked, or whether any person has violated or is about to v…

Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this chapter or any rule or order under this chapter, the commissioner may in his or her discretion bring any or all of th…

(1) Any person, who offers or sells a security in violation of this chapter or of any rules or orders promulgated hereunder or offers or sells a security by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the st…

Any person aggrieved by a final order of the commissioner may obtain a review of the order by filing in accordance with KRS Chapter 13B in the Franklin Circuit Court, within thirty (30) days after the entry of the order, a written petition praying that the order be modified or se…

(1) The administration of the provisions of this chapter shall be under the Department of Financial Institutions. (2) It is unlawful for the commissioner or any of his or her officers or employees to use for personal benefit any information which is filed with or obtained by the …

(1) The purpose of this chapter is to: (a) Protect investors by preventing investment fraud and related illegal conduct or, if this fraud or illegal conduct has already occurred, remedying, where possible, the harm done to investors through active implementation and application o…

All effective registrations under prior law and all conditions imposed upon such registrations remain in effect so long as they would have remained in effect if they had become effective under this chapter. They are considered to have been filed, entered, or imposed under this ch…

Interest charged by a broker or dealer registered under the Securities Exchange Act of 1934, as amended, or registered under KRS 292.330, as now or hereafter amended, on a debit balance in an account for a customer, shall be exempt from the provisions of KRS Chapter 360 if such d…

This chapter may be cited as the Securities Act of Kentucky.

In KRS 292.6501 to 292.6512, unless the context otherwise requires: (1) "Beneficiary form" means a registration of a security which indicates the present owner of the security and the intention of the owner regarding the person who will become the owner of the security upon the d…

Only individuals whose registration of a security shows sole ownership by one (1) individual or multiple ownership by two (2) or more with right of survivorship, rather than as tenants in common, may obtain registration in beneficiary form. Multiple owners of a security registere…

A security may be registered in beneficiary form if the form is authorized by this or a similar statute of the state of organization of the issuer or registering entity, the location of the registering entity's principal office, the office of its transfer agent, or its office mak…

A security, whether evidenced by certificate or account, is registered in beneficiary form when the registration includes a designation of a beneficiary to take the ownership at the death of the owner or the deaths of all multiple owners.

Registration in beneficiary form may be shown by the words "transfer on death" or the abbreviation "TOD," or by the words "pay on death" or the abbreviation "POD," after the name of the registered owner and before the name of a beneficiary.

The designation of a TOD beneficiary on a registration in beneficiary form has no effect on ownership until the owner's death. A registration of a security in beneficiary form may be canceled or changed at any time by the sole owner or all then-surviving owners without the consen…

On death of a sole owner or the last to die of all multiple owners, ownership of securities registered in beneficiary form passes to the beneficiary or beneficiaries who survive all owners. On proof of death of all owners and compliance with any applicable requirements of the reg…

(1) A registering entity is not required to offer or to accept a request for security registration in beneficiary form. If a registration in beneficiary form is offered by a registering entity, the owner requesting registration in beneficiary form assents to the protections given…

(1) A transfer on death resulting from a registration in beneficiary form is effective by reason of the contract regarding the registration between the owner and the registering entity and KRS 292.6501 to 292.6512 and is not testamentary. (2) KRS 292.6501 to 292.6512 does not lim…

(1) A registering entity offering to accept registrations in beneficiary form may establish the terms and conditions under which it will receive requests for registrations in beneficiary form, and for implementation of registrations in beneficiary form, including requests for can…

to 292.6512. (1) KRS 292.6501 to 292.6512 shall be known as and may be cited as the Uniform TOD Security Registration Act. (2) KRS 292.6501 to 292.6512 shall be liberally construed and applied to promote its underlying purposes and policy and to make uniform the laws with respect…

KRS 292.6501 to 292.6512 applies to registrations of securities in beneficiary form made before or after August 1, 1998, by decedents dying on or after August 1, 1998.

(1) Any person who willfully violates any provision of KRS 292.330, 292.332, 292.340, 292.450, or 292.500, or who willfully violates KRS 292.440 knowing the statement made to be false or misleading in any material respect, shall be guilty of a Class D felony. (2) Any person who w…

(1) The provisions of this chapter do not apply to secret or fraternal societies, lodges, or councils that are under the supervision of a grand or supreme body and secure members through the lodge system exclusively, and pay no commissions and employ no agents except in the organ…

Assessment or cooperative insurers may be assessed pursuant to KRS 304.2-440.

Every policy issued by a company under this chapter after July 15, 1982, shall have prominently printed or stamped on the face page the words "This is an assessable policy."

beginning July 15, 1998. (1) When any company licensed under this chapter transfers or suspends its business or fails to actively and in good faith operate its corporate franchises, powers, and privileges in the due course of business and in the fulfillment of the design and purp…

Examination by commissioner -- Notification to Secretary of State. (1) As used in this section, "company": (a) Means an entity organized under: 1. This chapter; or 2. Any law of this state for the purpose of transacting the business of insurance upon the cooperative or assessment…

(1) Every company licensed under this chapter shall provide to the commissioner a list of its officers and directors, their names, addresses, principal business activities, and occupations or employment. (2) Every company licensed under this chapter shall file with the commission…

cooperative or assessment plan. (1) Any company that issues any certificate, policy or other evidence of interest to, or makes any agreement with, its members, whereby any money, charity, relief, aid or other benefit is to be paid, provided or rendered by the company to the membe…

(1) Persons desiring to form an organization for the purpose of transacting the business of life or casualty insurance, or both, upon the assessment or cooperative plan, may associate together and effect an organization as prescribed in this section. (2) Any number of persons not…

When may begin business. Upon filing in the office of the commissioner the required articles of incorporation, together with a sworn statement by three (3) of the incorporators that at least two hundred (200) persons, eligible under the proposed laws of the company to membership …

companies prohibited. On June 21, 1974 no company not previously licensed shall be licensed to engage in the business of life and casualty insurance as set forth in KRS 299.020 through 299.215.

fund -- Rights of holders of certificates. (1) The guaranty fund required by KRS 299.040 may be raised by the issue and sale of guaranty fund certificates in denomination of not less than five dollars ($5) nor more than one thousand dollars ($1,000) each, to be sold for not less …

business -- Reserve fund. (1) Each company shall provide in its contracts with policyholders for the accumulation of an emergency fund. From the money realized from the admission fees and dues paid by the policyholders, two percent (2%) shall be deducted and set apart as an emerg…

force. (1) Articles of incorporation filed under KRS 299.030 shall be considered as abandoned, and shall become inoperative and void, unless the incorporators perfect their organization thereunder and issue certificates of membership within one (1) year from the date of filing th…

books. (1) Every company shall hold, within the county in which its principal office is located in this state, a stated annual meeting of its members or policyholders, or representatives of local boards or subordinate bodies, in the manner and subject to the regulations, restrict…

At the stated meeting for the election of officers, trustees, directors or managers, an attendance of a majority of the persons entitled to vote at the meeting shall not be necessary for a quorum. A failure to elect on the day designated for the meeting shall not dissolve a compa…

Every company shall, by March 1 of each year, make and file with the commissioner a report of its affairs and operations during the year ending on December 31 immediately preceding. The report shall be upon blank forms provided by the commissioner, and shall be verified under oat…

accompany policy -- Use as evidence -- Type size. All policies issued by a company to persons within this state, which policies contain any reference to the application of the insured, or the bylaws or rules of the company, either as forming part of the policy or contract between…

payment. Every policy issued by a company shall specify the sum of money that the company promises to pay upon the contingency insured against, which shall not be larger than the amount of one (1) assessment upon the entire membership, and shall specify the number of days after s…

(1) No company shall issue a policy upon the life of any person more than sixty (60) years of age, but in case of the transfer or reinsurance of members as provided in KRS 299.210 the foregoing limit of age shall not apply to members who have reached sixty (60) years since their …

(1) Each notice of assessment made by a company upon its members shall truly state the cause and purpose of the assessment, the amount paid on the last death claim paid, the cause of death and character of disease, the name of the deceased member, and the maximum face value of th…

A company shall have the right and shall be afforded the opportunity to have any policyholder claiming to be sick or injured examined by its physician as often as it may reasonably require during the pendency of any claim for sick or accident benefits. No action at law or in equi…