304.20-340 Declination or termination prohibited, when.
The declination or termination of a policy of insurance subject to KRS 304.20-300 to
304.20-350 by an insurer or agent is prohibited if the declination or termination is:
(1) Based solely upon the race, religion, nationality, ethnic group, age, sex, or marital
status of the applicant or named insured;
(2) Based solely upon the lawful occupation or profession of the applicant or named
insured, except that this provision shall not apply to an insurer which limits its
market to one (1) lawful occupation or profession or to several related lawful
occupations or professions or to an insurer that does not provide the kind of
insurance sought by the applicant;
(3) Based solely upon the age or location of the residence or property of the applicant or
named insured, unless such decision is for a business purpose which is not a mere
pretext for unfair discrimination;
(4) Based solely upon the fact that another insurer previously declined to insure the
applicant or terminated an existing policy in which the applicant was the named
insured;
(5) Based solely upon the fact that the applicant or named insured previously obtained
insurance through a residual market mechanism;
(6) Based solely upon the fact that the applicant or named insured has previously
obtained property or casualty insurance from a carrier providing nonstandard
coverage; or
(7) Based solely upon the fact that the applicant or named insured has sustained one (1)
or more losses that immediately result from a natural cause without the intervention
of any person and that could not have been prevented by the exercise of prudence,
diligence, and care.
Effective: July 14, 2000
History: Amended 2000 Ky. Acts ch. 540, sec. 3, effective July 14, 2000. -- Amended
1998 Ky. Acts ch. 212, sec. 2, effective July 15, 1998. -- Created 1986 Ky. Acts
ch. 426, sec. 5, effective July 15, 1986.
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