Title XXV, Business and Financial Institutions

When in context signifying other than this state, "state" means any state, district, territory, commonwealth or possession of the United States of America.

(1) A "domestic" insurer is one formed under the laws of this state; (2) A "foreign" insurer is one formed under the laws of any state, other than this state; (3) An "alien" insurer is one formed under the laws of any country other than a state of the United States.

The "domicile" of an insurer means: (1) As to Canadian insurers, the province in which the insurer's principal office is located. (2) As to other alien insurers authorized to transact insurance in one (1) or more states, as provided in KRS 304.3-270. (3) As to alien insurers not …

"Principal office" means: (1) As to Canadian insurers, the office in Canada from which the general affairs of the insurer are directed or managed; (2) As to other alien insurers authorized to transact insurance in one (1) or more states, the office in the United States from which…

(1) An "authorized" insurer is one duly authorized by a subsisting certificate of authority issued by the commissioner to transact insurance in this state. (2) An "unauthorized" insurer is one not so authorized.

As used in this chapter, unless the context requires otherwise: (1) "Certificate of authority" means a certificate issued by the commissioner evidencing the authority of an insurer to transact insurance in this state; and (2) "License" means a license or other authorization grant…

January 1, 2027) No provision of this code shall apply to: (1) Fraternal benefit societies (as identified in Subtitle 29), except as stated in Subtitle 29. (2) Nonprofit hospital, medical-surgical, dental, and health service corporations (as identified in Subtitle 32) except as s…

Provisions of this code relative to a particular kind of insurance or a particular type of insurer or to a particular matter shall prevail over provisions relating to insurance in general or insurers in general or to such matter in general.

The scope and meaning of any provision of this code shall not be limited or otherwise affected by the caption or handling of any subtitle, section or provision.

As used in this code and except as otherwise required by context, "subtitle" means a particular numbered subtitle of this code as indicated by context.

Every license or certificate of authority in force on June 18, 1970, and existing under any act repealed by this chapter, is valid until its original expiration date unless earlier terminated by express order pursuant to this code.

Every form of insurance document and every rate or other filing lawfully in use on or lawfully filed by June 18, 1970, may continue to be so used or be effective, until the commissioner otherwise prescribes pursuant to this code; except that neither this code nor the commissioner…

No action taken by the commissioner nor proceeding commenced, nor right accrued, nor violation of law existing under any act repealed by this chapter, is affected by the repeal, but all procedure hereafter taken in reference thereto shall conform to this code as far as possible.

authorities concerning designated matters. In the absence of fraud or bad faith, no person shall be subject to civil liability for defamation or any other relevant tort, and no civil cause of action of any nature shall arise against such person, for information given to law enfor…

health savings account-qualified insurance plans. (1) As used in this section: (a) "Cost-sharing requirement" means a: 1. Prohibition outright on the imposition of any deductible, copayment, coinsurance, or other out-of-pocket expense, other than premiums, under a health insuranc…

KRS 304.10-020 to 304.10-210, inclusive, constitute and may be cited as the "Surplus Lines Law."

This Surplus Lines Law shall not apply to reinsurance, or to the following insurances when so placed by agents or surplus lines brokers licensed in this state: (1) Ocean marine and foreign trade insurances. (2) Insurance on subjects located, resident, or to be performed wholly ou…

As used in this subtitle: (1) "Admitted insurer" means an insurer that is licensed or authorized to transact the business of insurance in Kentucky; (2) "Affiliate" means, with respect to an insured, any entity that controls, is controlled by, or is under common control with the i…

(1) Surplus Lines may be procured from a nonadmitted insurer subject to the following conditions: (a) The insurance shall be procured through a licensed surplus lines broker; (b) After a diligent effort, a licensed agent with property and casualty lines of authority, or with heal…

At the time of effecting any such surplus lines insurance, the broker shall execute an affidavit in form prescribed or accepted by the commissioner setting forth facts from which it can be determined whether such insurance was eligible for export under KRS 304.10-040. The broker …

(1) The commissioner may by order declare eligible for export generally and without compliance with the provisions of KRS 304.10-040(1)(b) and (c) and 304.10-050, any class or classes of insurance coverage or risk for which he or she finds, after a hearing of which notice was giv…

(1) A broker shall place surplus lines insurance only with an insurer that he or she knows, or in the exercise of reasonable diligence could know: (a) 1. Is authorized to write the type of insurance in its domiciliary jurisdiction; 2. Has capital and surplus or its equivalent und…

(1) Upon placing a surplus lines coverage, the broker shall promptly issue and deliver to the insured evidence of the insurance consisting either of the policy as issued by the insurer, or, if such policy is not then available, the surplus lines broker's certificate. Such a certi…

Every insurance contract procured and delivered as a surplus lines coverage pursuant to this subtitle shall have conspicuously stamped upon the face page, initialed by or bearing the name of the surplus lines broker who procured it, the following: "This insurance has been placed …

Insurance contracts procured as surplus lines coverage from unauthorized insurers in accordance with this subtitle shall be fully valid and enforceable as to all parties, and shall be given recognition in all matters and respects to the same effect as like contracts issued by aut…

(1) As to a surplus lines risk which has been assumed by an unauthorized insurer under this subtitle, and if the premium has been received by the surplus lines broker who placed the insurance, in all questions arising under the coverage as between the insurer and the insured the …

(1) Any person may be licensed as a surplus lines broker who: (a) Is a resident of Kentucky or is a nonresident who is not eligible to be issued a license in accordance with KRS 304.9-140; and (b) Is deemed by the commissioner to be competent and trustworthy with respect to the h…

(1) The commissioner may suspend or revoke any surplus lines broker's license: (a) If the broker fails to file his or her annual statement or to remit the tax as required by this subtitle; or (b) If the broker fails to keep records, or to allow the commissioner to examine his or …

(1) To the extent the Gramm-Leach-Bliley Act, 15 U.S.C. sec. 6751(f), provides that evidence of financial responsibility may be required for licensing for as long as the license remains in effect, a licensed resident surplus lines broker shall keep in force: (a) Evidence of finan…

A licensed surplus lines broker may accept and place surplus lines business for any insurance agent licensed in this state for the kind of insurance involved, and may compensate the agent therefor.

(1) Each broker shall keep in his or her office a full and true record of each surplus lines coverage procured by him or her, including a copy of each daily report, if any, a copy of each certificate of insurance issued by him or her, and of the following items as may be applicab…

(1) Each broker shall, within thirty (30) days of the end of each calendar quarter, file with the commissioner a verified statement of all surplus lines insurance transacted by him during the preceding calendar quarter. (2) The statement shall be on forms as prescribed by the com…

Each broker shall pay the following taxes: (1) A tax at the rate of three percent (3%) on the premiums, assessments, fees, charges, or other consideration deemed part of the premium as defined in KRS 304.14-030, on surplus lines insurance placed with an insured whose home state i…

(1) An unauthorized insurer shall be sued, upon any cause of action arising in the state under any contract issued by it as a surplus lines contract pursuant to this subtitle, in the Circuit Court of the county in which the cause of action arose. (2) Service of legal process agai…

The commissioner shall make or may approve and adopt reasonable rules and regulations, consistent with this subtitle, for any and all of the following purposes: (1) Effectuation of the Surplus Lines Law; and (2) Establishment of procedures through which determination is to be mad…

KRS 304.11-020 to 304.11-050, inclusive, constitute and may be cited as the "Kentucky Unauthorized Insurer's Law."

(1) Other than KRS 304.11-050, the provisions of KRS 304.11-020 to 304.11-050, shall not apply to any insurance company or underwriter issuing contracts of insurance to industrial insureds, government entity insureds, and exempt commercial policyholders, nor to any contract of in…

- Liability of person acting as agent -- Commissioner's power to enjoin. (1) It shall be unlawful for any company to enter into a contract of insurance as an insurer or to transact insurance business in this state, as set forth in subsection (2) of this section without a certific…

business in Kentucky -- Requirements for defense of action -- Reports to commissioner required. (1) No person or insurer shall directly or indirectly perform any of the acts of doing an insurance business as defined in KRS 304.11-020 to 304.11-050, inclusive, except as provided b…

insurer or client for placement of insurance and service rendered to client. (1) As used in this section, unless the context requires otherwise: (a) 1. "Agent" means an agent as defined in KRS 304.9-020; 2. "Agent" does not include the following: a. A managing general agent; b. A…

(1) The purpose of this section is to give Kentucky jurisdiction over providers of health care benefits; to indicate how each provider of health care benefits may show under what jurisdiction it falls; to allow for examination by Kentucky if the provider of health care benefits i…

(1) Effective with all premiums collected during the calendar year 1968, except premiums on lawfully procured surplus lines insurance, every unauthorized insurer shall pay to the secretary of revenue before March 1, next succeeding the calendar year in which the insurance was so …

No person shall engage in this state in any practice which is prohibited in this subtitle, or which is defined therein as, or determined pursuant thereto to be, an unfair method of competition or any unfair or deceptive act or practice in the business of insurance.

(1) The purpose of this section is to prohibit unfair or deceptive practices in the transaction of life and health insurance with respect to the human immunodeficiency virus infection and related matters. This section applies to all life and health insurance contracts which are d…

No person shall make or disseminate orally or in other manner any advertisement, information, matter, statement, or thing: (1) Misrepresenting the terms of any policy or the benefits or advantages thereof or dividends or share of surplus to be received thereon, or setting forth f…

(1) As used in this section: (a) "Replacement" means any transaction in which a new life insurance policy or annuity contract is to be purchased and it is known or should be known to the proposing producer, or to the proposing insurer if there is no producer, that by reason of th…