2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 3 - Authorization of Insurers and General Requirements 3.3-500 Definitions for KRS 304.3-500 to 304.3-570.
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304.3-500 Definitions for KRS 304.3-500 to 304.3-570.
As used in KRS 304.3-500 to 304.3-570, unless the context requires otherwise:
(1) "Actuary" means a person who is a member in good standing of the American
Academy of Actuaries;
(2) "Insurer" means any person duly authorized as an insurer by the
commissioner;
(3) "Controlling agent" means any person who negotiates and binds ceding
reinsurance contracts on behalf of an insurer or manages all or part of the
insurance business of an insurer, including the management of a separate
division, department, or underwriting office, and acts as an agent for the insurer
whether known as a controlling agent or other name, who, with or without the
authority, either separately or together with affiliates, produces, directly or
indirectly, and underwrites an amount of gross direct written premium equal to
more than five percent (5%) of the policyholder surplus as reported in the last
annual statement of the insurer in any one (1) quarter or year, and who also
adjusts or pays claims in excess of an amount determined by the
commissioner, or negotiates reinsurance on behalf of the insurer. The following
persons shall not be considered controlling agents:
(a) An employee of the insurer;
(b) A United States manager of the United States branch of an alien insurer;
(c) An underwriting manager which, pursuant to contract, manages all the
insurance operations of the insurer, is under common control with the
insurer, subject to Subtitle 37 of this chapter, and whose compensation is
not based on the volume of premiums written; and
(d) The attorney-in-fact authorized by and acting for the subscribers of a
reciprocal insurer, Lloyd's plan insurer, or interinsurance exchange under
powers of attorney; and
(4) "Underwrite" means the authority to accept or reject risks on behalf of the
insurer.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 981, effective July 15, 2010. -Created 1992 Ky. Acts ch. 139, sec. 1, effective July 14, 1992.
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