2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 15 - Life Insurance and Annuity Contracts 15.15-075 Notice of policy owner's rights -- Contents -- Conditions requiring notice to be given -- Application to policies $100,000 or greater permitted.
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304.15-075 Notice of policy owner's rights -- Contents -- Conditions requiring
notice to be given -- Application to policies $100,000 or greater permitted.
(1)
(2)
(3)
(4)
The commissioner shall develop a notice by promulgation of administrative
regulation to inform the owner of a policy of life insurance issued in this state of
his or her rights as an owner of a life insurance policy. The notice shall be
made available free of charge to insurance companies and life insurance
producers, and shall be written in nontechnical language.
The notice developed under subsection (1) of this section shall:
(a) Inform the consumer that life insurance is a critical part of a broader
financial plan;
(b) Inform the consumer that alternatives to lapse or surrender of the policy
exist;
(c) Provide the consumer with a general description of life settlements and
state that life settlements are a regulated transaction in Kentucky;
(d) Provide the consumer with a general description of other common
products and services that may be available to owners of life insurance
policies prior to lapse or surrender of a policy; and
(e) Include a statement that advises recipients of the notice that life
insurance, life settlements, or any of the products or services described in
the notice may or may not be available to the recipient depending on a
number of circumstances, including but not limited to the age and health
of the insured or the terms of a life insurance policy. The statement shall
also advise recipients that owners of life insurance policies are
encouraged to contact their financial advisor, agent, or broker to seek
further assistance or advice.
For each policy issued, the life insurance company shall provide the notice
required by subsection (1) of this section to the owner of an individual life
insurance policy:
(a) When the insured is sixty (60) years of age or older; or
(b) If the insurer has been notified that the insured person under the policy is
terminally or chronically ill, upon the occurrence of one (1) of the
following:
1.
The life insurance company receives from the owner a request to
surrender, in whole or in part, an individual policy;
2.
The life insurance company receives from the owner a request to
receive an accelerated death benefit under an individual policy;
3.
The life insurance company sends to the owner all notices of lapse
of an individual policy; provided, however, that the life insurance
company shall not be required to include the notice developed
pursuant to subsection (1) of this section to the owner of the policy
more than one (1) time within a twelve (12) month period from the
date of the first notice of lapse of the policy; or
4.
The occurrence of any other event as set forth by the commissioner
in administrative regulation.
In addition to the conditions set forth in subsection (3) of this section, the
commissioner may promulgate administrative regulations to establish that the
notice be made only with respect to policies with a net death benefit that is one
hundred thousand dollars ($100,000) or greater, if the commissioner finds that
this additional condition is in the best interest of the citizens of the
Commonwealth and does not discriminate against owners of life insurance
policies based on other factors such as race, religion, national origin, age,
disability, marital status, or economic means.
Effective:July 15, 2010
History: Created 2010 Ky. Acts ch. 25, sec. 5, effective July 15, 2010.
Legislative Research Commission Note (7/15/2010). References to the
"executive director" of insurance in this section, as created by 2010 Ky. Acts
ch. 25, sec. 5, have been changed in codification to the "commissioner" of
insurance to reflect the reorganization of certain parts of the Executive Branch,
as set forth in Executive Order 2009-535 and confirmed by the General
Assembly in 2010 Ky. Acts ch. 24. These changes were made by the Reviser of
Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.
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