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304.5-070 Casualty insurance defined.
(1)
"Casualty insurance" includes:
(a) Vehicle insurance. Insurance against loss of or damage to any land
vehicles or aircraft or any draft or riding animal or to property while
contained therein or thereon or being loaded or unloaded therein or
therefrom, from any hazard or cause, and against any loss, liability, or
expense resulting from or incidental to ownership, maintenance, or use of
any such vehicle, aircraft, or animal; together with insurance against
accidental injury to individuals, irrespective of legal liability of the insured,
including the named insured, while in, entering, alighting from, adjusting,
repairing, cranking, or caused by being struck by a vehicle, aircraft, or
draft or riding animal, if the insurance is issued as an incidental part of
insurance on the vehicle, aircraft, or draft or riding animal;
(b) Liability insurance. Insurance against legal liability for the death, injury, or
disability of any human being, or for damage to property; and provision of
medical, hospital, surgical, disability benefits to injured persons and
funeral and death benefits to dependents, beneficiaries, or personal
representatives of persons killed, irrespective of legal liability of the
insured, when issued as an incidental coverage with or supplemental to
liability insurance;
(c) Workers' compensation and employer's liability. Insurance of the
obligations accepted by, imposed upon, or assumed by employers under
law for death, disablement, or injury of employees;
(d) Burglary and theft. Insurance against loss or damage by burglary, theft,
larceny, robbery, forgery, fraud, vandalism, malicious mischief,
confiscation, or wrongful conversion, disposal or concealment, or from
any attempt at any of the foregoing; including supplemental coverage for
medical, hospital, surgical, and funeral expense incurred by the named
insured or any other person as a result of bodily injury during the
commission of a burglary, robbery, or theft by another; also insurance
against loss of or damage to moneys, coins, bullion, securities, notes,
drafts, acceptances, or any other valuable papers and documents,
resulting from any cause;
(e) Personal property floater. Insurance upon personal effects against loss or
damage from any cause;
(f) Glass. Insurance against loss or damage to glass, including its lettering,
ornamentation, and fittings;
(g) Boiler and machinery. Insurance against any liability and loss or damage
to property or interest resulting from accidents to or explosions of boilers,
pipes, pressure containers, machinery, or apparatus, and the inspection
of and issuance of certificates of inspection upon boilers, machinery, and
apparatus of any kind, whether or not insured;
(h) Leakage and fire extinguishing equipment. Insurance against loss or
damage to any property or interest caused by the breakage or leakage of
sprinklers, hoses, pumps and other fire extinguishing equipment or
apparatus, water pipes or containers, or by water entering through leaks
or openings in buildings, and insurance against loss or damage to
sprinklers, hoses, pumps, and other fire extinguishing equipment or
apparatus;
(i) Credit. Insurance, other than mortgage guaranty insurance, against loss
or damage resulting from failure of debtors to pay their obligations to the
insured;
(j) Malpractice. Insurance against legal liability of the insured, and against
loss, damage, or expense incidental to a claim of such liability, and
including medical, hospital, surgical, and funeral benefits to injured
persons, irrespective of legal liability of the insured, arising out of the
death, injury, or disablement of any person, or arising out of damage to
the economic interest of any person, as the result of negligence in
rendering expert, fiduciary, or professional service;
(k) Elevator. Insurance against loss of or damage to any property of the
insured, resulting from the ownership, maintenance, or use of elevators,
except loss or damage by fire, and the inspection of and issuance of
certificates of inspection upon, elevators;
(l) Congenital defects. Insurance against congenital defects in human
beings;
(m) Livestock. Insurance against loss of or damage to livestock from any
cause;
(n) Entertainments. Insurance indemnifying the producer of any motion
picture, television, radio, theatrical, sport, spectacle, entertainment, or
similar production, event, or exhibition against loss from interruption,
postponement, or cancellation thereof due to death, accidental injury, or
sickness of performers, participants, directors, or other principals;
(o) Failure of certain institutions to record documents. Insurance
indemnifying against loss from failure or omission to record as public
records, liens of any kind upon personal property, given, held, delivered,
or possessed as security or collateral for loans, advances, debts, or
obligations of all kinds;
(p) Automobile guaranty. Insurance of the mechanical condition or freedom
from defective or worn parts of motor vehicles, other than as provided by
manufacturer's warranty or as provided by KRS 190.090 to 190.140.
Provided, however, the making of a contract covering only defects in
material and workmanship in exchange for a separately stated charge
where it is merely incidental to the business of selling or leasing motor
vehicles, shall not be deemed insurance, provided, that the maker of the
contract has an insurance policy with an authorized motor vehicle insurer
as defined in KRS 304.1-100 to assure the performance of the duties of
the maker created by each on all of the contracts made by the maker. In
the event that the maker of the contract is unable to perform the duties
imposed thereby, the purchaser of the contract shall then be considered a
policyholder of the insurer. The policy shall include a loss payee
endorsement that provides coverage to any lending institution as its
interest may appear. In addition, the contract shall conspicuously state
the name and address of the licensed underwriting insurer and contain a
(2)
statement that the holder shall be entitled to make a direct claim against
that insurer upon the failure of the maker to pay any claim within sixty (60)
days after proof of loss has been filed with the maker. The requirements
that the maker of the contract have an insurance policy with an authorized
motor vehicle insurer as defined in KRS 304.1-100 shall not apply where
the maker is a manufacturer, distributor, or importer of motor vehicles. As
used in this paragraph, the term "maker" shall include a warranty service
company which issues automobile guaranties through a motor vehicle
dealer, in which the motor vehicle dealer is not an obligor under the
contract. The commissioner is authorized to promulgate regulations to
interpret this paragraph; and
(q) Miscellaneous. Insurance against any other kind of loss, damage, or
liability properly a subject of insurance and not within any other kind of
insurance as defined in this subtitle, if the insurance is not disapproved by
the commissioner as being contrary to law or public policy. A service
contract to repair, replace, or maintain consumer products shall not be
insurance, if the maker of the service contract registers with the
commissioner and provides:
1.
Evidence of a sufficient net worth, as determined by the
commissioner, to assure the performance of the duties of the maker
created by all of the contracts made by the maker; or
2.
Evidence of an insurance policy or performance bond with an
authorized insurer as defined in KRS 304.1-100, to assure the
performance of the duties of the maker created by all of the service
contracts made by the maker.
As set forth in subparagraph 2. of this paragraph, if the maker of the
service contract is unable to perform the duties imposed thereby, the
purchaser of the service contract shall then be considered a policyholder
of the insurer. The service contract shall conspicuously state the name
and address of the licensed underwriting insurer and contain a statement
that the holder shall be entitled to make a direct claim against the insurer
upon the failure of the maker to pay any claim within sixty (60) days after
the claim has been filed with the maker. The requirements of this
paragraph shall not apply where the maker is a manufacturer of consumer
products. If the maker of the service contract registers with the
commissioner and subsequently determines that the information
submitted pursuant to subparagraph 1. of this paragraph no longer
reflects a sufficient net worth as determined by the commissioner, to
assure the performance of the duties of the maker created by all of the
contracts made by the maker, the maker shall notify the commissioner of
the change in circumstances. Each registration filing with the
commissioner shall be filed within thirty (30) calendar days in advance of
the selling of service contracts to repair, replace, or maintain consumer
goods. The commissioner is authorized to promulgate administrative
regulations pursuant to KRS Chapter 13A to effectuate this paragraph.
Provision of medical, hospital, surgical, and funeral benefits and of coverage
against accidental death or injury, as incidental to and part of other insurance
as stated under paragraphs (a) (vehicle), (b) (liability), (d) (burglary), (g) (boiler
machinery), (j) (malpractice), and (k) (elevator) of subsection (1) of this section
shall for all purposes be deemed to be the same kind of insurance to which it is
so incidental, and shall not be subject to provisions of this code applicable to
life and health insurances.
Effective:July 12, 2012
History: Amended 2012 Ky. Acts ch. 96, sec. 5, effective July 12, 2012. -Amended 2010 Ky. Acts ch. 24, sec. 991, effective July 15, 2010. -- Amended
1996 Ky. Acts ch. 291, sec. 1, effective July 15, 1996. -- Amended 1994 Ky.
Acts ch. 375, sec. 1, effective July 15, 1994. -- Amended 1986 Ky. Acts ch. 146,
sec. 1, effective July 15, 1986. -- Created 1970 Ky. Acts ch. 301, subtit. 5,
sec. 7, effective June 18, 1970.
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