Download as PDF
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.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.