304.37-020 Registration of insurers.
(1)
(2)
Every insurer which is authorized to do business in this state and which is a member
of an insurance holding company system shall register with the commissioner,
except a foreign or alien insurer subject to disclosure requirements and standards
adopted by statute or regulation in the jurisdiction of its domicile which are
substantially similar to those contained in this section. For an alien insurer, the
domiciliary state shall be deemed to be its state of entry. Any insurer which is
subject to registration under this section shall register within sixty (60) days after
June 16, 1972, or fifteen (15) days after it becomes subject to registration,
whichever is later, and annually thereafter by April 1 of each year for the previous
calendar year, unless the commissioner for good cause shown extends the time for
registration, and then within the extended time. The commissioner may require any
authorized insurer which is a member of a holding company system which is not
subject to registration under this section to furnish a copy of the registration
statement or other information filed by the insurer with the insurance regulatory
authority of its domiciliary jurisdiction.
Every insurer subject to registration shall file a registration statement on a form
provided by the commissioner, which shall contain current information about:
(a) The capital structure, general financial condition, ownership, and management
of the insurer and any person controlling the insurer;
(b) The identity of every member of the insurance holding company system;
(c) The following agreements in force, relationships subsisting, and transactions
currently outstanding between such insurer and its affiliates:
1.
Loans to, other investments in, or purchases, sales, or exchanges of
securities of the affiliates by the insurer or of the insurer by its affiliates;
2.
Purchases, sales, or exchanges of assets;
3.
Transactions not in the ordinary course of business;
4.
Guarantees or undertakings for the benefit of an affiliate which result in
an actual contingent exposure of the insurer's assets to liability, other
than insurance contracts entered in the ordinary course of the insurer's
business;
5.
All management and service contracts and all cost-sharing
arrangements;
6.
All reinsurance agreements;
7.
Dividend and other distributions to shareholders; and
8.
Consolidated tax allocation agreements;
(d) Any pledge of the insurer's stock, including stock of any subsidiary or
controlling affiliate for a loan made to any member of the insurance holding
company system; and
(e) Other matters concerning transactions between registered insurers and any
affiliates as may be included from time to time in any registration forms
adopted or approved by the commissioner.
(3)
It shall not be necessary to disclose information on the registration statement filed
pursuant to subsection (2) of this section if the information is not material for the
purposes of this section. Unless the commissioner by administrative regulation or
order provides otherwise, sales, purchases, exchanges, loans, or extensions of credit,
or investments, involving one-half of one percent (0.5%) or less of an insurer's
admitted assets as of the thirty-first day of December next preceding shall not be
deemed material for purposes of this section.
(4) Each registered insurer shall keep current the information required to be disclosed
in its registration statement by reporting all material changes or additions on
amendment forms provided by the commissioner within thirty (30) days after the
end of the month in which it learns of each change or addition.
(5) All registration statements shall contain a summary outlining all items in the current
registration statement representing changes from the prior registration statement.
(6) Subject to KRS 304.37-030(5), each registered insurer shall report to the
commissioner all dividends and other distributions to shareholders within fifteen
(15) business days following the dividend or distribution declaration.
(7) Any person within an insurance holding company system subject to registration
shall be required to provide complete and accurate information to an insurer, if the
information is reasonably necessary to enable the insurer to comply with the
provisions of this subtitle.
(8) The commissioner shall terminate the registration of any insurer which
demonstrates that it no longer is a member of an insurance holding company
system.
(9) The commissioner may require or allow two (2) or more affiliated insurers subject
to registration to file a consolidated registration statement or consolidated reports
amending their consolidated registration statement or their individual registration
statements.
(10) The commissioner may allow an insurer which is authorized to do business in this
state and which is part of an insurance holding company system to register on behalf
of any affiliated insurer which is required to register under subsection (1) and to file
all information and material required to be filed under this section.
(11) The provisions of this section shall not apply to any insurer, information, or
transaction if and to the extent that the commissioner by administrative regulation
or order shall exempt it from the provisions of this section.
(12) Any person may file with the commissioner a disclaimer of affiliation with any
authorized insurer or a disclaimer may be filed by the insurer or any member of an
insurance holding company system. The disclaimer shall fully disclose all material
relationships and bases for affiliation between the persons and the insurer as well as
the basis for disclaiming the affiliation. After a disclaimer has been filed, the insurer
shall be relieved of any duty to register or report under this section which may arise
out of the insurer's relationship with the person unless and until the commissioner
disallows the disclaimer. The commissioner shall disallow the disclaimer only after
furnishing all parties in interest with notice and opportunity to be heard and after
making specific findings of fact to support the disallowance.
(13) The failure to file a registration statement or any amendment thereto required by
this section within the time specified for the filing shall be a violation of this
subtitle.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1473, effective July 15, 2010. -Amended 1996 Ky. Acts ch. 326, sec. 4, effective July 15, 1996. -- Amended 1994
Ky. Acts ch. 92, sec. 5, effective July 15, 1994; and ch. 93, sec. 17, effective July 15,
1994. – Amended 1992 Ky. Acts ch. 267, sec. 4, effective July 14, 1992. -- Created
1972 Ky. Acts ch. 52, sec. 2, effective June 16, 1972.
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