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304.9-280 Termination of licensee's appointment -- Notice requirements -Civil immunity -- Confidential and privileged information -Commissioner's use of information.
(1)
(2)
(3)
(4)
(5)
Subject to the agent contract rights of a rental vehicle agent, rental vehicle
managing employee, managing general agent, or agent, if any, an insurer may
terminate an appointment at any time. However, if any appointment is not
terminated on or prior to December 31, then on January 1 the fees designated
shall be due for submission as provided in KRS 304.9-270.
An insurer or authorized representative of the insurer that terminates the
appointment, employment, contract, or other insurance business relationship
with a licensee shall notify the commissioner within thirty (30) days following
the effective date of the termination, using a form or a format prescribed by the
commissioner, if the reason for termination is one (1) of the reasons set forth in
KRS 304.9-440 or if the insurer has knowledge the licensee was found by a
court, government body, or self-regulatory organization authorized by law to
have engaged in any of the activities in KRS 304.9-440. Termination under this
subsection shall be deemed termination for cause. Upon the written request of
the commissioner the insurer shall provide additional information, documents,
records, or other data pertaining to the termination or activity of the licensee.
An insurer or authorized representative of the insurer that terminates the
appointment of a licensee for any reason not set forth in subsection (2) of this
section, shall notify the commissioner within thirty (30) days following the
effective date of the termination, using a form or a format prescribed by the
commissioner. Termination under this subsection shall be deemed termination
without cause. Upon written request of the commissioner, the insurer shall
provide additional information, documents, records, or other data pertaining to
the termination.
The insurer or the authorized representative of the insurer shall promptly notify
the commissioner in a form or a format acceptable to the commissioner if, upon
further review or investigation, the insurer discovers additional information that
would have been reportable to the commissioner in accordance with
subsection (2) of this section had the insurer known of its existence.
(a) Within fifteen (15) days after making the notification required for
termination without cause, the insurer shall mail a notice of the
termination to the licensee at his or her last known address by first-class
mail. The notice of termination shall include and indicate the reasons for
termination provided to the commissioner.
(b) Within fifteen (15) days after making the notification required for
termination for cause, the insurer shall provide a copy of the form to the
licensee at his or her last known address by certified mail, return receipt
requested, postage prepaid, or by overnight delivery using a nationally
recognized carrier.
(c) Within thirty (30) days after the licensee has received a copy of the form,
the licensee may file written comments concerning the substance of the
notification with the commissioner. The licensee shall, by the same
means, simultaneously send a copy of the comments to the reporting
insurer, and the comments shall become a part of the commissioner's file
(6)
(a)
(b)
(c)
(7)
(a)
and accompany every copy of a report distributed or disclosed for any
reason about the licensee as permitted under subsection (7)(c) of this
section.
1.
In the absence of actual malice, an insurer, the authorized
representative of the insurer, a licensee, the commissioner, or their
respective representatives or employees, or an organization of
which the commissioner is a member and that compiles the
information and makes it available to other insurance commissioners
or regulatory or law enforcement agencies, shall not be subject to
civil liability, and a civil cause of action of any nature shall not arise
against these individuals, entities, or their respective representatives
or employees as a result of:
a.
Any statement or information required by or provided in
accordance with this section;
b.
Any information relating to any statement that may be
requested in writing from an insurer or licensee by the
commissioner; or
c.
A statement by a terminating insurer or licensee to an insurer
or licensee that is limited solely and exclusively to whether a
termination for cause under subsection (2) of this section was
reported to the commissioner.
2.
The propriety of any termination for cause under subsection (2) of
this section shall be certified in writing by an officer or authorized
representative of the insurer or licensee terminating the relationship.
In any action brought against an individual, business entity, or
organization that may have immunity under paragraph (a) of this
subsection for making any statement required by this section or providing
any information relating to any statement that may be requested by the
commissioner, the party bringing the action shall plead specifically in any
allegation that paragraph (a) of this subsection does not apply because
the individual, business entity, or organization making the statement, or
providing the information did so with actual malice.
Paragraph (a) or (b) of this subsection shall not abrogate or modify any
existing statutory or common law privileges or immunities.
1.
Any document, material, or other information in the control or
possession of the department that is furnished by an insurer,
licensee, or an employee or representative acting on behalf of the
insurer or licensee, or obtained by the commissioner in an
investigation in accordance with this section:
a.
Shall be confidential by law and privileged;
b.
Shall not be subject to subpoena; or
c.
Shall not be subject to discovery or admissible in evidence in
any private civil action.
Notwithstanding subdivisions a., b., and c. of this subparagraph, any
document, material, or other information that is furnished by an
insurer, licensee, or an employee or representative acting on behalf
(b)
(c)
(d)
(e)
(f)
of the insurer or licensee, or obtained by the commissioner in an
investigation in accordance with this section, that is used in a formal
administrative proceeding or enforcement action in accordance with
KRS Chapter 13B shall be subject to the Kentucky Open Records
Act.
2.
However, the commissioner is authorized to use the documents,
materials, or other information referred to in paragraph (a)1. of this
subsection in the furtherance of any regulatory or legal action
brought to carry out the commissioner's duties.
Neither the commissioner nor any individual who received documents,
materials, or other information while acting under the authority of the
commissioner, shall be permitted or required to testify in any private civil
action concerning any confidential documents, materials, or information
subject to paragraph (a) of this subsection.
In order to assist in the performance of the commissioner's duties, as set
forth in KRS 304.2-100, the commissioner:
1.
May share documents, materials, or other information, including the
confidential and privileged documents, materials, or information
subject to paragraph (a) of this subsection, with other state, federal,
and international regulatory agencies, with the National Association
of Insurance Commissioners, its affiliates, or subsidiaries, and with
state, federal, and international law enforcement authorities,
provided that the recipient agrees to maintain the confidentiality and
privileged status of the documents, materials, or other information;
2.
May receive documents, materials, or information, including
otherwise confidential and privileged documents, materials, or
information, from the National Association of Insurance
Commissioners, its affiliates or subsidiaries, and from regulatory and
law enforcement officials of other foreign or domestic jurisdictions,
and shall maintain as confidential or privileged any documents,
materials, or information received with notice or the understanding
that it is confidential or privileged under the laws of the jurisdiction
that is the source of the documents, materials, or information; and
3.
May enter into agreements governing sharing and use of
information consistent with this subsection.
No waiver of any applicable privilege or claim of confidentiality in the
documents, materials, or information shall occur as a result of disclosure
to the commissioner or of sharing as authorized in this subsection.
The commissioner shall release only final, adjudicated actions, including
for-cause terminations that are open to public inspection in accordance
with the Kentucky Open Records Act, KRS 61.870 to 61.884.
As part of the nonresident license certification process, the department
shall release only final adjudicated actions on licensees identified in
subsection (1) of this section.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1064, effective July 15, 2010; and
ch. 83, sec. 7, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143,
sec. 13, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 393, sec. 22,
effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 485, sec. 3, effective July
15, 1998. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 28, effective June 18,
1970.
Legislative Research Commission Note (7/15/2010). This section was amended
by 2010 Ky. Acts chs. 24 and 83, which do not appear to be in conflict and have
been codified together.
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