304.9-020 Definitions for subtitle.
As used in this subtitle: <br>(1) "Agent" means a person who sells, solicits, or negotiates insurance or annuity
contracts;
(2) "Appointment" means a notification filed with the insurance department that an
insurer has established an agency relationship with a producer;
(3) "Appointment renewal" means continuation of an insurer's existing appointment
based on payment of the required fee without submission of an appointment form;
(4) "Apprentice adjuster" means an individual who meets the qualification requirements
to hold a license as an independent, staff, or public adjuster, except for the <br>experience, education, and training requirements;
(5) "Business entity" means a corporation, association, partnership, limited liability
company, limited liability partnership, employer group, professional employer <br>organization, or other legal entity;
(6) "Catastrophe" means an event that results in a declaration of emergency by the
Governor pursuant to KRS 39A.100 and: <br>(a) A large number of deaths or injuries; <br>(b) Extensive damage or destruction of facilities that provide and sustain human
needs;
(c) An overwhelming demand on state and local response resources and
mechanisms;
(d) A severe long-term effect on general economic activity; or <br>(e) A severe effect on state, local, and private sector capabilities to begin and
sustain response activities;
(7) "Crop insurance" means insurance providing protection against damage to crops
from unfavorable weather conditions, fire or lightning, flood, hail, insect <br>infestation, disease, or other yield-reducing conditions or perils provided by the <br>private insurance market or that is subsidized by the Federal Crop Insurance <br>Corporation, including multi-peril crop insurance;
(8) "Home state" means the District of Columbia and any state or territory of the United
States in which a licensee maintains his or her principal place of residence or <br>principal place of business and is licensed by that state;
(9) "Independent adjuster" means a person who:
(a) Is an independent contractor, an employee of an independent contractor, or for
tax purposes is treated as an independent contractor under Subtitle C of the <br>Internal Revenue Code, 26 U.S.C. secs. 3101 et seq.;
(b) Is compensated by an insurer or self-insurer; and <br>(c) Investigates, negotiates, or settles property, casualty, or workers'
compensation claims for insurers or self-insurers;
(10) "Insurance producer" means an individual or business entity required to be licensed
under the laws of Kentucky to sell, solicit, or negotiate insurance or annuity
contracts. "Insurance producer" includes agent, managing general agent, surplus <br>lines broker, reinsurance intermediary broker and manager, rental vehicle agent and <br>rental vehicle agent managing employee, and consultant;
(11) "Limited line credit insurance" includes credit life, credit disability, credit property,
credit unemployment, involuntary unemployment, mortgage life, mortgage <br>guaranty, mortgage disability, guaranteed automobile protection insurance, and any <br>other form of insurance offered in connection with an extension of credit that is <br>limited to partially or wholly extinguishing that credit obligation that the <br>commissioner determines should be designated a form of limited line credit <br>insurance;
(12) "Limited line credit insurance agent" means an individual or business entity who
sells, solicits, or negotiates one (1) or more forms of limited line credit insurance <br>coverage to individuals through a master, corporate, group, or individual policy;
(13) "Limited lines insurance" means the lines of insurance defined in subsections (7),
(11), (17), (22), and (24) of this section and any other line of insurance that the <br>commissioner identifies in accordance with KRS 304.9-230(1)(f) or recognizes for <br>the purpose of complying with KRS 304.9-140(5);
(14) "Negotiate" means the act of conferring directly with, or offering advice directly to,
a purchaser or prospective purchaser of a particular contract of insurance <br>concerning any of the substantive benefits, terms, or conditions of the contract, <br>provided that the person engaged in that act either sells insurance or obtains <br>insurance from insurers for purchasers. "Negotiate" does not include negotiating a <br>claims settlement;
(15) "Public adjuster" means any person who, for compensation or anything of value:
(a) Acts on behalf of an insured or aids an insured, solely in relation to first-party
claims arising under insurance contracts that insure the real or personal <br>property of the insured, in negotiating for, or effecting the settlement of, a <br>claim for loss or damage covered by an insurance contract;
(b) Advertises for employment as a public adjuster of insurance claims, solicits
business or represents himself, herself, or itself to the public as a public <br>adjuster of first-party insurance claims for losses or damages arising out of <br>policies of insurance that insure real or personal property; or
(c) Directly or indirectly solicits business, investigates or adjusts losses, advises
an insured about first-party claims for losses or damages arising out of <br>policies of insurance that insure real or personal property for another person, <br>or engages in the business of adjusting losses or damages covered by an <br>insurance policy for the insured;
(16) "Rental vehicle agent" means a business entity with a rental vehicle agent managing
employee that is licensed to sell, solicit, or negotiate insurance offered, sold, or <br>solicited in connection with, and incidental to, the rental of rental cars, whether at <br>the rental office or by preselection of coverage in master, corporate, or group <br>agreements that: <br>(a) Are nontransferable;
(b) Apply only to the rental car that is the subject of the rental agreement; and <br>(c) Are limited to the following kinds of insurance:
1.
Personal accident insurance for renters and other rental car occupants for <br>accidental death or dismemberment and for medical expenses resulting <br>from an accident that occurs with the rental car during the rental period;
2.
Liability insurance that provides protection to the renters and other <br>authorized drivers of a rental car for liability arising from the operation <br>or use of the rental car during the rental period;
3.
Personal effects insurance that provides coverage to renters and other <br>vehicle occupants for loss of or damage to personal effects in the rental <br>vehicle during the rental period;
4.
Roadside assistance insurance;
5.
Emergency sickness protection insurance; or
6.
Any other coverage designated by the commissioner;
(17) "Rental vehicle insurance" means insurance underwritten by an insurer authorized
to transact business in Kentucky that is sold in connection with, and incidental to, a <br>rental vehicle agreement;
(18) "Rental vehicle agent managing employee" means an individual who:
(a) Is a salaried full-time employee of a licensed rental vehicle agent business
entity that holds a license under KRS 304.9-505; and
(b) Is responsible for the supervision of the other employees engaged in the
placement of insurance;
(19) "Sell" means to exchange a contract of insurance by any means, for money or other
valuable consideration, on behalf of an insurer;
(20) "Solicit" means attempting to sell insurance or asking or urging a person to apply
for a particular kind of insurance from a particular insurer;
(21) "Staff adjuster" means an individual who is an employee of an insurer who
investigates, negotiates, or settles property, casualty, or workers' compensation <br>claims on behalf of his or her employer;
(22) "Surety" means insurance or bond that covers obligation to pay the debts of, or
answer for the default of another, including faithlessness in a position of public or <br>private trust. Surety also includes surety insurance as defined in KRS 304.5-060;
(23) "Terminate" means the cancellation of the relationship between an insurance
producer and the insurer or the termination of an insurance producer's authority to <br>transact insurance;
(24) "Travel insurance" means insurance coverage for trip cancellation, trip interruption,
baggage, life, sickness and accident, disability, and personal effects if limited to a <br>specific trip and sold in connection with transportation provided by a common <br>carrier;
(25) "Uniform business entity application" means the current version of the uniform
business entity application for resident and nonresident business entities; and
(26) "Uniform individual application" means the current version of the uniform
individual application for resident and nonresident individuals.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 1041, effective July 15, 2010; and ch. 83,
sec. 1, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 2, effective <br>June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 4, effective July 15, 2002. -- <br>Amended 2000 Ky. Acts ch. 393, sec. 1, effective July 14, 2000. -- Amended 1998 <br>Ky. Acts ch. 341, sec. 43, effective July 15, 1998. -- Created 1970 Ky. Acts ch. 301, <br>subtit. 9, sec. 2, effective June 18, 1970.
Legislative Research Commission Note (7/15/2010). A reference to the "executive
director" of insurance in subsection (16) of this section, as amended by 2010 Ky. <br>Acts ch. 83, sec. 1, has been changed in codification to the "commissioner" of <br>insurance to reflect the reorganization of certain parts of the Executive Branch, as set <br>forth in Executive Order 2009-535 and confirmed by the General Assembly in 2010 <br>Ky. Acts ch. 24. This change was made by the Reviser of Statutes pursuant to 2010 <br>Ky. Acts ch. 24, sec. 1938.
Legislative Research Commission Note (7/15/2010). This section was amended by
2010 Ky. Acts chs. 24 and 83, which do not appear to be in conflict and have been <br>codified together.
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