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304.9-425 Payment or acceptance of commission, brokerage, or other
valuable consideration -- Exception.
(1)
(2)
(3)
(4)
(5)
No insurer, financial institution, agent, surplus lines broker, adjuster,
administrator, reinsurance intermediary broker or manager, rental vehicle agent
or managing employee, life settlement broker or provider, or consultant shall
pay, directly or indirectly, any commission, brokerage, or other valuable
consideration to any individual or business entity for services as an agent,
surplus lines broker, adjuster, administrator, reinsurance intermediary broker or
manager, rental vehicle agent or managing employee, life settlement broker or
provider, or consultant within this state, unless the individual or business entity
held at the time the services were performed a valid license for that line of
insurance as required by the laws of this state for the services.
No individual or business entity, other than an individual or business entity duly
licensed by this state as an agent, surplus lines broker, adjuster, administrator,
reinsurance intermediary broker or manager, rental vehicle agent or managing
employee, life settlement broker or provider, or consultant at the time the
services were performed, shall accept any commission, brokerage, or other
valuable consideration for those services, unless the individual or business
entity is licensed at the time the services were performed, if a license is
required by law.
This section shall not prevent payment or receipt of renewal or other deferred
commissions to or by any individual or business entity entitled under this
section.
Services as an agent, surplus lines broker, adjuster, administrator, reinsurance
intermediary broker or manager, rental vehicle agent or managing employee, or
consultant within this state shall not include a referral by an unlicensed person
of a consumer to a licensed agent, surplus lines broker, adjuster, administrator,
reinsurance intermediary broker or manager, rental vehicle agent or managing
employee, or consultant that does not include a discussion of specific
insurance policy terms and conditions.
An insurer, financial institution, agent, surplus lines broker, adjuster,
administrator, reinsurance intermediary broker or manager, rental vehicle agent
or managing employee, or consultant may pay any compensation, fee, or other
consideration to an individual not licensed to sell insurance for the referral of a
consumer to a licensed individual, only if the consideration is paid regardless of
whether the insurance coverage is sold to the consumer.
Effective:June 25, 2013
History: Amended 2013 Ky. Acts ch. 123, sec. 2, effective June 25, 2013. -Amended 2010 Ky. Acts ch. 83, sec. 10, effective July 15, 2010. -- Amended
2008 Ky. Acts ch. 32, sec. 18, effective July 15, 2008. -- Amended 2002 Ky.
Acts ch. 273, sec. 33, effective July 15, 2002. -- Amended 2000 Ky. Acts
ch. 393, sec. 31, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 171,
sec. 6, effective July 15, 1982.
Legislative Research Commission Note (7/15/2008). 2008 Ky. Acts ch. 32
intended to change all existing references in the KRS from "viatical settlements"
to "life settlements." One reference to "viatical settlement" in this section was
overlooked during the bill drafting process. The Reviser of Statutes has made
this change upon the authority of KRS 7.136(1)(h).
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