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304.10-080 Evidence of the insurance -- Changes -- Penalty.
(1)
(2)
(3)
(4)
(5)
Upon placing a surplus lines coverage, the broker shall promptly issue and
deliver to the insured evidence of the insurance consisting either of the policy
as issued by the insurer, or, if such policy is not then available, the surplus
lines broker's certificate. Such a certificate shall be executed by the broker and
shall show the description and location of the subject of the insurance,
coverage, conditions and term of the insurance, the premium and rate charged
and taxes collected from the insured, and the name and address of the insured
and insurer. If the direct risk is assumed by more than one (1) insurer, the
certificate shall state the name and address and proportion of the entire direct
risk assumed by each such insurer.
No broker shall issue any such certificate or any cover note or purport to insure
or represent that insurance will be or has been granted by any unauthorized
insurer, unless he has prior written authority from the insurer for the insurance
or has received information from the insurer in the regular course of business
that such insurance has been granted, or an insurance policy providing the
insurance actually has been issued by the insurer and delivered to the insured.
If after the issuance and delivery of any such certificate there is any change as
to the identity of the insurers, or the proportion of the direct risk assumed by an
insurer as stated in the broker's original certificate, or in any other material
respect as to the insurance evidenced by the certificate, the broker shall
promptly issue and deliver to the insured a substitute certificate accurately
showing the current status of the coverage and the insurers responsible
thereunder.
If a policy issued by the insurer is not available upon placement of the
insurance and the broker has issued and delivered his certificate as
hereinabove provided upon request therefor by the insurer the broker shall as
soon as reasonably possible procure from the insurer its policy evidencing such
insurance and deliver such policy to the insured in replacement of the broker's
certificate theretofore issued.
Any surplus lines broker who knowingly or negligently issues a false certificate
of insurance, or who fails promptly to notify the insured of any material change
with respect to such insurance by delivery to the insured of a substitute
certificate as provided in subsection (3) of this section, shall upon conviction be
subject to the penalty provided by Subtitle 99 of this chapter or to any greater
applicable penalty otherwise provided by law.
Effective:June 18, 1970
History: Created 1970 Ky. Acts ch. 301, subtit. 10, sec. 8, effective June 18, 1970.
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