2014 Kentucky Revised Statutes
CHAPTER 190 - MOTOR VEHICLE SALES
190.033 Insurance or bond required of licensees -- Exemption.
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<![CDATA[190.033 Insurance or bond required of licensees -- Exemption.
(1)
(2)
(3)
(4)
Except as provided in subsection (4) of this section, a motor vehicle dealer's
license, new recreational vehicle dealer's license, motor vehicle auction
dealer's license, or wholesaler's license shall not be issued or renewed unless
the applicant or holder of the license shall have on file with the commission an
approved indemnifying bond or insurance policy issued by a surety company or
insurance carrier authorized to transact business within the Commonwealth of
Kentucky. The term of the bond or policy shall be continuous and shall remain
in full force until canceled under proper notice. All bonds or policies shall be
issued in the name of the holder or applicant for the dealer's license or
wholesaler's license. The bond or policy for all dealers except automotive
recycling dealers shall provide public liability and property damage coverage
for the operation of any vehicle owned or being offered for sale by the dealer or
wholesaler when being operated by the owner or seller, his agents, servants,
employees, prospective customers, or other persons. In circumstances where a
customer's or other person's vehicle is out of use because of breakdown,
repair, or servicing and a motor vehicle is loaned, with or without consideration,
the coverage mandated by this section shall be in excess of, and be deemed
secondary to, the collision, bodily injury, and property damage liability coverage
under a customer's or other person's own coverage for that person's own
negligence; otherwise the coverage mandated by this section shall be primary.
The amount of insurance shall be two hundred fifty thousand dollars
($250,000) for bodily injury or death of any one (1) person; five hundred
thousand dollars ($500,000) for bodily injury or death in any one (1) accident;
and two hundred fifty thousand dollars ($250,000) property damage. The bond
or policy for automotive recycling dealers shall provide commercial general
liability coverage in the amount of two hundred fifty thousand dollars
($250,000) for bodily injury or death of any one (1) person; five hundred
thousand dollars ($500,000) for bodily injury or death in any one (1) accident;
and two hundred fifty thousand dollars ($250,000) property damage.
A bond or insurance policy shall not be canceled unless fifteen (15) days'
notice by the bondsman or insurance carrier has been given in writing to the
commission. Upon the cancellation of any bond or insurance policy required,
the right to engage in the business of a motor vehicle dealer or wholesaler shall
immediately abate. If the bond or insurance policy is reinstated within thirty (30)
days from the date of cancellation, the rights granted by the license shall again
be in force and effect; otherwise, the license shall become void.
A dealer that has a certificate of authority from the Department of Insurance
demonstrating proof of self-insurance is exempt from this section.
Effective:January 1, 2015
History: Amended 2014 Ky. Acts ch. 27, sec. 17, effective January 1, 2015; and
ch. 83, sec. 2, effective July 15, 2014. -- Amended 2002 Ky. Acts ch. 83, sec. 1,
effective July 15, 2002. -- Amended 1996 Ky. Acts ch. 111, sec. 2, effective July
15, 1996. -- Amended 1992 Ky. Acts ch. 452, sec. 3, effective July 14, 1992. -Amended 1988 Ky. Acts ch. 65, sec. 2, effective July 15, 1988. -- Amended
1982 Ky. Acts ch. 373, sec. 4, effective July 15, 1982. -- Created 1966 Ky. Acts
ch. 175, sec. 13.
Legislative Research Commission Note (1/1/2015). This statute was amended by
2014 Ky. Acts chs. 27 and 83, which do not appear to be in conflict and have
been codified together.
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