2011 Kentucky Revised Statutes Subtitle 3. Authorization of Insurers and General Requirements 304.3.530 Duties and responsibilities of insured and controlling agent.
KY Rev Stat § 304.3.530 (1996 through Reg Sess) What's This?
304.3-530 Duties and responsibilities of insured and controlling agent.
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The insurer shall have on file an independent financial examination, in a form
acceptable to the commissioner, of each controlling agent with which it has done
business.
If a controlling agent establishes loss reserves, the insurer shall annually obtain the
opinion of an actuary attesting to the adequacy of loss reserves established for
losses incurred and outstanding on business produced by the controlling agent. This
is in addition to any other required loss reserve certification.
The insurer shall at least semiannually conduct an on-site review of underwriting
and claims processing operations of the controlling agent.
Binding authority for all reinsurance contracts or participation in insurance or
reinsurance syndicates shall rest with an officer of the insurer, who shall not be
affiliated with the controlling agent.
Within thirty (30) days of entering into or termination of a contract with a
controlling agent, the insurer shall provide written notification of the appointment
or termination to the commissioner. Notices of appointment of a controlling agent
shall include a statement of the duties which the applicant is expected to perform on
behalf of the insurer, the lines of insurance for which the applicant is authorized to
act, and any other information the commissioner may request.
An insurer shall review its books and records each quarter to determine if any
person producing business has become a controlling agent as defined in KRS 304.3500(3). If the insurer determines that a person producing business has become a
controlling agent, the insurer shall promptly notify the person producing business
and the commissioner of this determination and the insurer and the person
producing business must fully comply with the provisions of KRS 304.3-500 to
304.3-570 within thirty (30) days.
An insurer shall not appoint to its board of directors an officer, director, employee,
subproducer, or controlling shareholder of any of its controlling agents. This
subsection shall not apply to relationships governed by Subtitle 37 of this chapter or
any provisions of this subtitle pertaining to business transacted with a producer
controlled property or casualty insurer.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 984, effective July 15, 2010. -- Created
1992 Ky. Acts ch. 139, sec. 4, effective July 14, 1992.
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