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304.10-030 Definitions for Subtitle 10.
As used in this subtitle:
(1) "Admitted insurer" means an insurer that is licensed or authorized to transact
the business of insurance in Kentucky.
(2) "Affiliate" means, with respect to an insured, any entity that controls, is
controlled by, or is under common control with the insured.
(3) "Broker" means a surplus lines broker duly licensed as such under this subtitle.
(4) "Exempt commercial purchaser" means any person purchasing commercial
insurance that, at the time of placement, meets the following requirements:
(a) The person employs or retains a qualified risk manager to negotiate
insurance coverage;
(b) The person has paid aggregate nationwide commercial property and
casualty insurance premium in excess of one hundred thousand dollars
($100,000) in the immediately preceding twelve (12) months;
(c) 1.
The person meets at least one (1) of the following criteria:
a.
The person possesses a net worth in excess of twenty million
dollars ($20,000,000), adjusted pursuant to subparagraph 2. of
this paragraph;
b.
The person generates annual revenues in excess of fifty
million dollars ($50,000,000), as adjusted pursuant to
subparagraph 2. of this paragraph;
c.
The person employs more than five hundred (500) full-time or
full-time equivalent employees per individual insured or is a
member of an affiliated group employing more than one
thousand (1,000) employees in the aggregate;
d.
The person is a not-for-profit organization or public entity
generating annual budgeted expenditures of at least thirty
million dollars ($30,000,0000), adjusted pursuant to
subparagraph 2. of this paragraph; or
e.
The person is a municipality with a population in excess of fifty
thousand (50,000) persons.
2.
Effective on the fifth January 1 occurring after July 12, 2012, and
each fifth January 1 occurring thereafter, the amounts in
subparagraph 1.a., b., and d. of this paragraph shall be adjusted to
reflect the percentage change for the five (5) year period in the
consumer price index for all urban consumers published by the
Bureau of Labor Statistics of the Department of Labor.
(5) To "export" means to place in an unauthorized insurer under this Surplus Lines
Law insurance covering a subject of insurance resident, located or to be
performed in Kentucky.
(6) "Home state" means:
(a) 1.
The state in which an insured maintains its principal place of
business or, in the case of an individual, the individual's principal
residence; or
2.
(7)
(8)
If one hundred percent (100%) of the insured risk is located out of
the state referred to in subparagraph 1. of this paragraph, the state
to which the greatest percentage of the insured's taxable premium
for that insurance contract is allocated; or
(b) If more than one (1) insureds from an affiliated group are named insureds
on a single nonadmitted insurance contract, the home state, as
determined pursuant to paragraph (a) of this section, of the member of
the affiliated group that has the largest percentage of premium attributed
to it under the insurance contract.
"Nonadmitted insurance" means any property and casualty insurance
permitted to be placed directly or through a surplus lines broker with a
nonadmitted insurer eligible to accept the insurance.
"Nonadmitted insurer" means an insurer that is not authorized or admitted to
transact the business of insurance in Kentucky.
Effective:July 12, 2012
History: Amended 2012 Ky. Acts ch. 74, sec. 6, effective July 12, 2012. -- Created
1970 Ky. Acts ch. 301, subtit. 10, sec. 3, effective June 18, 1970.
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