304.9-700 Definitions for KRS 304.9-700 to 304.9-759.
As used in KRS 304.9-700 to 304.9-759, unless the context requires otherwise: <br>(1) "Actuary" means a person who is a member in good standing of the American
Academy of Actuaries;
(2) "Controlling person" means any person, firm, association, or corporation who
directly or indirectly has the power to direct or cause to be directed the <br>management, control, or activities of the reinsurance intermediary;
(3) "Insurer" means any person, firm, association, or corporation duly authorized by the
commissioner pursuant to the applicable provisions of this chapter as an insurer;
(4) "Licensed producer" means an agent, surplus lines broker, or reinsurance
intermediary licensed pursuant to the applicable provisions of this chapter;
(5) "Reinsurance intermediary" means a reinsurance intermediary broker or a
reinsurance intermediary manager as defined in subsections (6) and (7) of this <br>section;
(6) "Reinsurance intermediary broker" means any person, other than an officer or
employee of the ceding insurer, firm, association, or corporation who solicits, <br>negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding <br>insurer without the authority or power to bind reinsurance on behalf of the insurer;
(7) "Reinsurance intermediary manager" means any person, firm, association, or
corporation who has authority to bind or manages all or part of the assumed <br>reinsurance business of a reinsurer (including the management of a separate <br>division, department, or underwriting office) and acts as an agent for a reinsurer <br>whether known as a reinsurance intermediary manager, manager, or by other similar <br>term. However, the following persons shall not be considered a reinsurance <br>intermediary manager with respect to the reinsurer for the purposes of KRS 304.9-<br>700 to 304.9-759: <br>(a) An employee of the reinsurer; <br>(b) A United States manager of the United States branch of an alien reinsurer; <br>(c) An underwriting manager which, pursuant to contract, manages all the
reinsurance operations of the reinsurer, is under common control with the <br>reinsurer, subject to Subtitle 37 of this chapter, and whose compensation is <br>not based on the volume of premiums written; or
(d) The manager of a group, association, pool, or organization of insurers which
engage in joint underwriting or joint reinsurance and who are subject to <br>examination by the insurance regulatory official of the state in which the <br>manager's principal business office is located;
(8) "Reinsurer" means any person, firm, association, or corporation duly authorized in
Kentucky pursuant to this chapter as an insurer with the authority to assume <br>reinsurance;
(9) "To be in violation" means that the reinsurance intermediary, insurer, or reinsurer
for whom the reinsurance intermediary was acting failed to comply substantially <br>with the provisions of KRS 304.9-700 to 304.9-759; and
(10) "Qualified United States financial institution" means an institution that:
(a) Is organized or, in the case of a United States office of a foreign banking
organization, licensed under the laws of the United States or any state thereof;
(b) Is regulated, supervised, and examined by the United States government or
state authorities having regulatory authority over banks and trust companies; <br>and
(c) Has been determined by either the commissioner, or the Securities Valuation
Office of the National Association of Insurance Commissioners, to meet the <br>standards of financial condition and standing considered necessary and <br>appropriate to regulate the quality of financial institutions whose letters of <br>credit will be acceptable to the commissioner.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 1084, effective July 15, 2010. -- Created
1992 Ky. Acts ch. 155, sec. 1, effective July 14, 1992.
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