Download as PDF
304.10-030 Definitions for Subtitle 10.
As used in this subtitle:
(1) "Admitted insurer" means an insurer that is licensed or authorized to transact the
business of insurance in Kentucky.
(2) "Affiliate" means, with respect to an insured, any entity that controls, is controlled
by, or is under common control with the insured.
(3) "Broker" means a surplus lines broker duly licensed as such under this subtitle.
(4) "Exempt commercial purchaser" means any person purchasing commercial
insurance that, at the time of placement, meets the following requirements:
(a) The person employs or retains a qualified risk manager to negotiate insurance
coverage;
(b) The person has paid aggregate nationwide commercial property and casualty
insurance premium in excess of one hundred thousand dollars ($100,000) in
the immediately preceding twelve (12) months;
(c) 1.
The person meets at least one (1) of the following criteria:
a.
The person possesses a net worth in excess of twenty million
dollars ($20,000,000), adjusted pursuant to subparagraph 2. of this
paragraph;
b.
The person generates annual revenues in excess of fifty million
dollars ($50,000,000), as adjusted pursuant to subparagraph 2. of
this paragraph;
c.
The person employs more than five hundred (500) full-time or fulltime equivalent employees per individual insured or is a member
of an affiliated group employing more than one thousand (1,000)
employees in the aggregate;
d.
The person is a not-for-profit organization or public entity
generating annual budgeted expenditures of at least thirty million
dollars ($30,000,0000), adjusted pursuant to subparagraph 2. of
this paragraph; or
e.
The person is a municipality with a population in excess of fifty
thousand (50,000) persons.
2.
Effective on the fifth January 1 occurring after July 12, 2012, and each
fifth January 1 occurring thereafter, the amounts in subparagraph 1.a., b.,
and d. of this paragraph shall be adjusted to reflect the percentage
change for the five (5) year period in the consumer price index for all
urban consumers published by the Bureau of Labor Statistics of the
Department of Labor.
(5) To "export" means to place in an unauthorized insurer under this Surplus Lines Law
insurance covering a subject of insurance resident, located or to be performed in
Kentucky.
(6) "Home state" means:
(a)
(7)
(8)
1.
The state in which an insured maintains its principal place of business
or, in the case of an individual, the individual's principal residence; or
2.
If one hundred percent (100%) of the insured risk is located out of the
state referred to in subparagraph 1. of this paragraph, the state to which
the greatest percentage of the insured's taxable premium for that
insurance contract is allocated; or
(b) If more than one (1) insureds from an affiliated group are named insureds on a
single nonadmitted insurance contract, the home state, as determined pursuant
to paragraph (a) of this section, of the member of the affiliated group that has
the largest percentage of premium attributed to it under the insurance contract.
"Nonadmitted insurance" means any property and casualty insurance permitted to be
placed directly or through a surplus lines broker with a nonadmitted insurer eligible
to accept the insurance.
"Nonadmitted insurer" means an insurer that is not authorized or admitted to
transact the business of insurance in Kentucky.
Effective: July 12, 2012
History: Amended 2012 Ky. Acts ch. 74, sec. 6, effective July 12, 2012. -- Created
1970 Ky. Acts ch. 301, subtit. 10, sec. 3, 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.
