304.9-105 General qualifications for agent license.
(1) An individual applying for an agent license shall make application to the
commissioner on the uniform individual application or other application prescribed <br>by the commissioner. Before approving the application, the commissioner shall find <br>that the applicant: <br>(a) Is at least eighteen (18) years of age; <br>(b) Has fulfilled the residence requirements as set forth in KRS 304.9-120 or is a
nonresident who is not eligible to be issued a license in accordance with KRS <br>304.9-140;
(c) Has not committed any act that is a ground for denial, suspension, or
revocation set forth in KRS 304.9-440;
(d) Is trustworthy, reliable, and of good reputation, evidence of which shall be
determined through an investigation by the commissioner;
(e) Is competent to exercise the license and has:
1.
Except for variable life and variable annuities line of authority and <br>limited lines of authority identified in KRS 304.9-230, completed a <br>prelicensing course of study consisting of forty (40) hours for life and <br>health, forty (40) hours for property and casualty, or twenty (20) hours <br>for each line of authority, as applicable, for which the individual has <br>applied. The commissioner shall promulgate administrative regulations <br>to carry out the purpose of this section;
2.
Except for variable life and variable annuities line of authority and <br>limited lines of authority identified in accordance with KRS 304.9-230, <br>successfully passed the examinations required by the commissioner for <br>the lines of authority for which the individual has applied; and
3.
Paid the fees set forth in KRS 304.4-010; and
(f) Is financially responsible to exercise the license and has:
1.
a.
Filed with the commissioner the certificate of an insurer authorized <br>to write legal liability insurance in this state, that the insurer has <br>and will keep in effect on behalf of the person a policy of <br>insurance covering the legal liability of the licensed person as the <br>result of erroneous acts or failure to act in his or her capacity as an <br>insurance agent, and enuring to the benefit of any aggrieved party <br>as the result of any single occurrence in the sum of not less than <br>twenty thousand dollars ($20,000) and one hundred thousand <br>dollars ($100,000) in the aggregate for all occurrences within one <br>(1) year, and that the policy shall not be terminated unless at least <br>thirty (30) days' prior written notice will have been given to the <br>commissioner; or
b.
Deposited with the commissioner cash, or a cash surety bond <br>executed by an insurer authorized to write business in this <br>Commonwealth, in the sum of twenty thousand dollars ($20,000), <br>which shall be subject to lawful levy of execution by any party to
whom the licensee has been found to be legally liable as the result <br>of erroneous acts or failure to act in his or her capacity as an agent; <br>or
c.
Filed with the commissioner on his or her behalf, by an authorized <br>insurer or group of affiliated insurers for which he or she is or is to <br>become an exclusive agent, an agreement whereby the insurer or <br>group of affiliated insurers agrees to assume responsibility, to the <br>benefit of any aggrieved party, for legal liability of the licensed <br>person as the result of erroneous acts or failure to act in his or her <br>capacity as an insurance agent on behalf of the insurer or group of <br>affiliated insurers in the sum of twenty thousand dollars ($20,000) <br>for any single occurrence and that the agreement shall not be <br>terminated until the license is surrendered to the commissioner or <br>at least thirty (30) days' prior written notice will have been given to <br>the commissioner, whichever shall first occur; and
2.
Agreed with the commissioner that if at any time notice is given to the <br>commissioner that any policy filed in accordance with subparagraph 1.a. <br>of this paragraph, or agreement filed in accordance with subparagraph <br>1.c. of this paragraph, is to be terminated and has not been replaced by <br>another policy or agreement within the time established by regulations of <br>the commissioner, or if any deposit in accordance with subparagraph <br>1.b. of this paragraph be reduced through levy of execution and not <br>replaced by any necessary additional deposit within the time established <br>by administrative regulations of the commissioner, any and all licenses <br>held by the licensee are terminated and shall be promptly surrendered to <br>the commissioner without demand.
(2) The commissioner may require additional information or submissions from
applicants and may obtain any documents or information reasonably necessary to <br>verify the information contained in an application.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 1047, effective July 15, 2010; and ch. 83,
sec. 2, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 6, effective <br>June 20, 2005. -- Amended 2002 Ky. Acts ch. 273, sec. 15, effective July 15, 2002. -- <br>Amended 2000 Ky. Acts ch. 393, sec. 7, effective July 14, 2000. -- Amended 1998 <br>Ky. Acts ch. 483, sec. 9, effective July 15, 1998. -- Amended 1986 Ky. Acts ch. 437, <br>sec. 12, effective July 15, 1986. -- Created 1978 Ky. Acts ch. 161, sec. 1, effective <br>June 17, 1978.
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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