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304.17A-150 Unfair trade practices -- Penalties.
(1) On and after July 15, 1995, it is an unfair trade practice for an insurer, agent, broker,
or any other person in the business of marketing and selling health plans, to commit <br>or perform any of the following acts: <br>(a) Encourage individuals or groups to refrain from filing an application for
coverage with the insurer because of the individual's or group's health status, <br>claims experience, industry, occupation, or geographic location; or
(b) Encourage or direct individuals or groups to seek coverage from another
insurer because of the individual's or group's health status, claims experience, <br>industry, occupation, or geographic location; or
(c) Encourage an employer to exclude an employee from coverage.
The provisions of this subsection shall not apply to information provided regarding <br>the established geographic service area of an insurer.
(2) It is an unfair trade practice for an insurer to compensate an agent, broker, or any
other person in the business of marketing and selling health plans on the basis of the <br>health status, claims experience, industry, occupation, or geographic location of the <br>insured or prospective insured except as provided in KRS 304.17B-001 to 304.17B-<br>031.
(3) It shall constitute an unfair trade practice for any insurer, insurance agent, or third-
party administrator to refer an individual to Kentucky Access, or to arrange for an <br>individual to apply to Kentucky Access, for the purpose of separating an individual <br>from group health insurance coverage.
(4) It is an unfair trade practice for an insurer that offers multiple health benefit plans to
require a health care provider, as a condition of participation in a health benefit plan <br>of the insurer, to participate in any of the insurer's other health benefit plans. In <br>addition to the proceedings and penalties provided in this chapter for violation of <br>this provision, a contract provision violating this subsection is void.
(5) It is an unfair trade practice for an insurer not to compute an insured's coinsurance
or cost sharing on the basis of the amount actually received by a health-care <br>provider from the insurer.
(6) The commissioner may suspend or revoke, after notice and hearing, the certificate
of authority to transact insurance in this state of any insurer that fails to pay an <br>assessment under KRS 304.17B-021. As an alternative, the commissioner may levy <br>a civil penalty on any member insurer that fails to pay the assessment when due. <br>The civil penalty shall not exceed five percent (5%) of the unpaid assessment per <br>month, but no civil penalty shall be less than one hundred dollars ($100) per month.
(7) The remedy provided by KRS 304.12-120 shall be available for conduct proscribed
by this section.
(8) It is an unfair claims settlement practice for any person to make claims payments to
insureds or beneficiaries not accompanied by a statement setting forth the coverage <br>under which the payments are being made in instances in which the insured has a <br>liability under the policy beyond his or her copayment or deductible.
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Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 1216, effective July 15, 2010. --
Amended 2002 Ky. Acts ch. 351, sec. 4, effective July 15, 2002. -- Amended 2000 <br>Ky. Acts ch. 468, sec. 1, effective July 14, 2000; ch. 476, sec. 20, effective January <br>1, 2001; and ch. 521, sec. 15, effective July 14, 2000. -- Amended 1998 Ky. Acts <br>ch. 271, sec. 1, effective July 15, 1998; and ch. 496, sec. 44, effective April 10, 1998. <br>-- Created 1994 Ky. Acts ch. 512, sec. 58, effective July 15, 1994.
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