Download as PDF
304.9-020 Definitions for subtitle.
As used in this subtitle:
(1) "Agent" means a person who sells, solicits, or negotiates insurance or annuity
contracts;
(2) "Appointment" means a notification filed with the insurance department that an
insurer has established an agency relationship with a producer;
(3) "Appointment renewal" means continuation of an insurer's existing appointment
based on payment of the required fee without submission of an appointment form;
(4) "Apprentice adjuster" means an individual who meets the qualification requirements
to hold a license as an independent, staff, or public adjuster, except for the
experience, education, and training requirements;
(5) "Business entity" means a corporation, association, partnership, limited liability
company, limited liability partnership, employer group, professional employer
organization, or other legal entity;
(6) "Catastrophe" means an event that results in a declaration of emergency by the
Governor pursuant to KRS 39A.100 and:
(a) A large number of deaths or injuries;
(b) Extensive damage or destruction of facilities that provide and sustain human
needs;
(c) An overwhelming demand on state and local response resources and
mechanisms;
(d) A severe long-term effect on general economic activity; or
(e) A severe effect on state, local, and private sector capabilities to begin and
sustain response activities;
(7) "Crop insurance" means insurance providing protection against damage to crops
from unfavorable weather conditions, fire or lightning, flood, hail, insect
infestation, disease, or other yield-reducing conditions or perils provided by the
private insurance market or that is subsidized by the Federal Crop Insurance
Corporation, including multi-peril crop insurance;
(8) "Home state" means the District of Columbia and any state or territory of the United
States in which a licensee maintains his or her principal place of residence or
principal place of business and is licensed by that state;
(9) "Independent adjuster" means a person who:
(a) Is an independent contractor, an employee of an independent contractor, or for
tax purposes is treated as an independent contractor under Subtitle C of the
Internal Revenue Code, 26 U.S.C. secs. 3101 et seq.;
(b) Is compensated by an insurer or self-insurer; and
(c) Investigates, negotiates, or settles property, casualty, or workers'
compensation claims for insurers or self-insurers;
(10) "Insurance producer" means an individual or business entity required to be licensed
under the laws of Kentucky to sell, solicit, or negotiate insurance or annuity
(11)
(12)
(13)
(14)
(15)
(16)
(17)
contracts. "Insurance producer" includes agent, managing general agent, surplus
lines broker, reinsurance intermediary broker and manager, rental vehicle agent and
rental vehicle agent managing employee, and consultant;
"Limited line credit insurance" includes credit life, credit disability, credit property,
credit unemployment, involuntary unemployment, mortgage life, mortgage
guaranty, mortgage disability, guaranteed automobile protection insurance, and any
other form of insurance offered in connection with an extension of credit that is
limited to partially or wholly extinguishing that credit obligation that the
commissioner determines should be designated a form of limited line credit
insurance;
"Limited line credit insurance agent" means an individual or business entity who
sells, solicits, or negotiates one (1) or more forms of limited line credit insurance
coverage to individuals through a master, corporate, group, or individual policy;
"Limited lines insurance" means the lines of insurance defined in subsections (7),
(11), (21), (26), and (28) of this section and any other line of insurance that the
commissioner identifies in accordance with KRS 304.9-230(1)(g) or recognizes for
the purpose of complying with KRS 304.9-140(5);
"Negotiate" means the act of conferring directly with, or offering advice directly to,
a purchaser or prospective purchaser of a particular contract of insurance
concerning any of the substantive benefits, terms, or conditions of the contract,
provided that the person engaged in that act either sells insurance or obtains
insurance from insurers for purchasers. "Negotiate" does not include negotiating a
claims settlement;
"Portable electronics" means electronic devices that are portable and the accessories
and services related to the use of the device;
(a) "Portable electronics insurance" means insurance providing coverage for the
repair or replacement of portable electronics for any one (1) or more of the
following:
1.
Loss;
2.
Theft;
3.
Inoperability due to mechanical failure;
4.
Malfunction;
5.
Damage; or
6.
Other similar causes of loss.
(b) "Portable electronics insurance" does not mean:
1.
A service contract governed by KRS 304.5-070;
2.
A policy of insurance covering a seller's or manufacturer's obligations
under a warranty; or
3.
A homeowner's, renter's, private passenger automobile, commercial
multi-peril, or similar policy;
"Portable electronics insurance supervising entity" means a business entity that is a
licensed insurer or insurance agent that is appointed by an insurer to supervise the
(18)
(19)
(20)
(21)
administration of a portable electronics insurance program;
"Portable electronics retailer" means a licensed business entity that offers and sells
portable electronic devices and offers and disseminates portable electronics
insurance on behalf and under the direction of a portable electronics insurance
supervising entity;
"Public adjuster" means any person who, for compensation or anything of value:
(a) Acts on behalf of an insured or aids an insured, solely in relation to first-party
claims arising under insurance contracts that insure the real or personal
property of the insured, in negotiating for, or effecting the settlement of, a
claim for loss or damage covered by an insurance contract;
(b) Advertises for employment as a public adjuster of insurance claims, solicits
business or represents himself, herself, or itself to the public as a public
adjuster of first-party insurance claims for losses or damages arising out of
policies of insurance that insure real or personal property; or
(c) Directly or indirectly solicits business, investigates or adjusts losses, advises
an insured about first-party claims for losses or damages arising out of
policies of insurance that insure real or personal property for another person,
or engages in the business of adjusting losses or damages covered by an
insurance policy for the insured;
"Rental vehicle agent" means a business entity with a rental vehicle agent managing
employee that is licensed to sell, solicit, or negotiate insurance offered, sold, or
solicited in connection with, and incidental to, the rental of rental vehicles, whether
at the rental office or by preselection of coverage in master, corporate, or group
agreements that:
(a) Are nontransferable;
(b) Apply only to the rental vehicle that is the subject of the rental agreement; and
(c) Are limited to the following kinds of insurance:
1.
Personal accident insurance for renters and other rental vehicle
occupants for accidental death or dismemberment and for medical
expenses resulting from an accident that occurs with the rental vehicle
during the rental period;
2.
Liability insurance that provides protection to the renters and other
authorized drivers of a rental vehicle for liability arising from the
operation or use of the rental vehicle during the rental period;
3.
Personal effects insurance that provides coverage to renters and other
vehicle occupants for loss of or damage to personal effects in the rental
vehicle during the rental period;
4.
Roadside assistance insurance;
5.
Emergency sickness protection insurance; or
6.
Any other coverage designated by the commissioner;
"Rental vehicle insurance" means insurance underwritten by an insurer authorized
to transact business in Kentucky that is sold in connection with, and incidental to, a
(22)
(23)
(24)
(25)
(26)
(27)
(28)
(29)
(30)
rental vehicle agreement;
"Rental vehicle agent managing employee" means an individual who:
(a) Is a salaried full-time employee of a licensed rental vehicle agent business
entity that holds a license under KRS 304.9-505; and
(b) Is responsible for the supervision of the other employees engaged in the
placement of insurance;
"Sell" means to exchange a contract of insurance by any means, for money or other
valuable consideration, on behalf of an insurer;
"Solicit" means attempting to sell insurance or asking or urging a person to apply
for a particular kind of insurance from a particular insurer;
"Staff adjuster" means an individual who is an employee of an insurer who
investigates, negotiates, or settles property, casualty, or workers' compensation
claims on behalf of his or her employer;
"Surety" means insurance or bond that covers obligation to pay the debts of, or
answer for the default of another, including faithlessness in a position of public or
private trust. Surety also includes surety insurance as defined in KRS 304.5-060;
"Terminate" means the cancellation of the relationship between an insurance
producer and the insurer or the termination of an insurance producer's authority to
transact insurance;
(a) "Travel insurance" means insurance coverage for personal risks incident to
planned travel, including but not limited to:
1.
Interruption or cancellation of a trip or event;
2.
Loss of baggage or personal effects;
3.
Damages to accommodations or rental vehicles; and
4.
Sickness, accident, disability, or death occurring during travel.
(b) "Travel insurance" does not include insurance coverage that provides
comprehensive medical protection for travelers with trips lasting six (6)
months or longer, including those working overseas as an expatriate or
military personnel being deployed;
"Uniform business entity application" means the current version of the uniform
business entity application for resident and nonresident business entities; and
"Uniform individual application" means the current version of the uniform
individual application for resident and nonresident individuals.
Effective: June 25, 2013
History: Amended 2013 Ky. Acts ch. 123, sec. 1, effective June 25, 2013. -- Amended
2012 Ky. Acts ch. 92, sec. 1, effective July 12, 2012. -- Amended 2010 Ky. Acts ch.
24, sec. 1041, effective July 15, 2010; and ch. 83, sec. 1, effective July 15, 2010. -Amended 2005 Ky. Acts ch. 143, sec. 2, effective June 20, 2005. -- Amended 2002
Ky. Acts ch. 273, sec. 4, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393,
sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 341, sec. 43, effective
July 15, 1998. -- Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 2, effective June 18,
1970.
Legislative Research Commission Note (7/15/2014). Under the authority of KRS
7.136(1)(e), a reference to "304.9-230(1)(f)" in subsection (13) of this statute has
been changed to "304.9-230(1)(g)" by the Reviser of Statutes following the
enactment of 2014 Ky. Acts ch. 59, sec. 1 which inserted a new paragraph in KRS
304.9-230(1), but did not amend this statute to conform.
Legislative Research Commission Note (7/15/2010). A reference to the "executive
director" of insurance in subsection (16) of this section, as amended by 2010 Ky.
Acts ch. 83, sec. 1, has 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. This change was made by the Reviser of Statutes pursuant to 2010
Ky. Acts ch. 24, sec. 1938.
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.