Download as PDF
304.10-140 Broker's evidence of financial responsibility and bond.
(1)
(2)
To the extent the Gramm-Leach-Bliley Act, 15 U.S.C. sec. 6751(f), provides that
evidence of financial responsibility may be required for licensing for as long as the
license remains in effect, a licensed resident surplus lines broker shall keep in force:
(a) Evidence of financial responsibility in the sum of not less than one million
dollars ($1,000,000) per occurrence, and the sum of two million dollars
($2,000,000) in the aggregate, for all occurrences within one (1) year, either in
the form of an errors and omissions insurance policy issued by an authorized
insurer, a bond issued by an authorized corporate surety, a deposit, or a
combination of a bond issued by an authorized corporate surety and a deposit;
and
(b) A bond in favor of the State of Kentucky in the penal sum of fifty thousand
dollars ($50,000), with an authorized corporate surety guaranteeing that he or
she will conduct business under the license in accordance with the provisions
of this subtitle and that he or she will promptly remit the taxes required by
KRS 304.10-180. The aggregate liability of the surety for any and all claims
on any bond shall in no event exceed the penal sum.
An insurer issuing coverage under subsection (1)(a) or (b) of this section may offer,
as a part of the policy or as an optional endorsement to the policy, deductibles
optional to the surplus lines broker applicant or licensee for the payment of claims.
Deductible amounts offered in accordance with this section shall be fully disclosed
to the applicant or licensee in writing. If the applicant or licensee chooses a
deductible policy, the insurer shall pay the deductible amount initially and the
licensee shall be liable to the insurer, at the time and in the manner prescribed in the
policy, for the amount of the deductible. If the licensee fails to reimburse the insurer
as required by this subsection, his or her surplus lines broker license and all other
licenses issued by the commissioner are revoked and shall be promptly surrendered
to the commissioner without demand. Nothing contained in this subsection is
intended to or shall in any manner alter or affect the rights of the insurer to collect
the reimbursement for the deductible from the surplus lines broker.
Effective: July 12, 2012
History: Amended 2012 Ky. Acts ch. 74, sec. 10, effective July 12, 2012. -- Amended
2010 Ky. Acts ch. 24, sec. 1096, effective July 15, 2010. -- Amended 2002 Ky. Acts
ch. 273, sec. 40, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 43,
effective July 14, 2000. -- Amended 1990 Ky. Acts ch. 464, sec. 3, effective July 13,
1990. -- Amended 1982 Ky. Acts ch. 123, sec. 11, effective July 15, 1982. -- Created
1970 Ky. Acts ch. 301, subtit. 10, sec. 14, effective June 18, 1970.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.