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304.9-270 Appointment of agents -- Criminal background check -- Continuation -Permitted and prohibited actions by agents and insurers.
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Each insurer appointing an agent, including managing general agent, rental vehicle
agent, rental vehicle managing employee, specialty credit producer, and specialty
credit managing employee, in this state shall obtain approval of the appointment
from the commissioner by filing with the commissioner the notice of appointment,
specifying the lines of authority to be transacted by the agent for the insurer, and
submit the appointment fee, as specified in KRS 304.4-010. Each insurer shall
notify the commissioner of additional lines of authority for which a licensee is
deemed authorized to transact business, after the initial appointment, in a format
prescribed by the commissioner.
Prior to appointment, the insurer shall satisfy itself through investigation that the
named applicant has not been convicted of any felony offense involving dishonesty
or a breach of trust and has not been convicted of a fraudulent insurance act under
Subtitle 47 of this chapter, unless the named applicant has received written consent
from the commissioner that specifically refers to KRS 304.47-025(3).
No agent shall claim to be an agent or representative of, or in any way imply a
contractual relationship with, a particular insurer, or place applications for insurance
with an insurer unless the agent becomes an appointed agent of the insurer and the
agent's appointment has been approved by the commissioner.
An agent may act as a representative of and place insurance with an insurer without
first obtaining approval of the appointment by the commissioner for a period of
fifteen (15) days from the date the first insurance application is executed by the
agent. If the agent does not obtain confirmation that the agent's appointment has
been approved by the commissioner within fifteen (15) days from the date the first
insurance application is executed, the agent shall immediately discontinue acting as
an agent on behalf of the insurer until confirmation is received.
(a) The insurer shall, no later than fifteen (15) days from the date the agent
contract is executed or the first insurance application is submitted by an agent,
whichever is earlier, file with the commissioner a notice of appointment on a
form or in a format prescribed by the commissioner.
(b) If there is no executed agent contract, the insurer shall also mail to the agent,
within the same fifteen (15) day period specified in paragraph (a) of this
subsection, a copy of the notice of appointment form filed with the
commissioner.
Within fifteen (15) days of receipt of the notice of appointment, the commissioner
shall determine and notify the insurer whether the agent is eligible for appointment.
If the agent's license is in good standing and no other grounds exist to deny the
appointment, the commissioner shall approve the appointment.
Subject to renewal by the insurer as provided in subsection (8) of this section, each
appointment shall remain in effect until the earliest of the following:
(a) The commissioner revokes or otherwise terminates the insurance producer's
license;
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The commissioner suspends, revokes, or otherwise terminates the
appointment; or
(c) The insurer terminates the appointment as provided in KRS 304.9-280.
Biennially, before January 31, the department shall distribute to each insurer a
listing of the names and individual identification numbers of that insurer's agents
whose appointments were in effect during the preceding calendar year and who
were not terminated on or prior to December 31 of that calendar year. Any
appointment not expressly terminated shall remain in effect as to the lines of
authority thereof for which the respective agents are currently appointed, and
subject to the fees specified under KRS 304.4-010. On or before March 31, each
insurer shall submit the renewal of appointment fee as specified in KRS 304.4-010
for each appointment not terminated on or prior to December 31 of the preceding
calendar year.
Any appointment as to which the request for renewal and fees are not received by
the commissioner by March 31 shall be deemed to have expired at midnight on
March 31. Any appointment renewal request and fees received by the commissioner
after March 31 and prior to the next following June 30 may be accepted by the
commissioner, in his or her discretion, and the expired appointment may be
reinstated as of March 31 if the late request and fees are accompanied by a penalty
as provided in KRS 304.99-100.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1063, effective July 15, 2010. -Amended 2005 Ky. Acts ch. 143, sec. 12, effective June 20, 2005. -- Amended 2002
Ky. Acts ch. 273, sec. 26, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 57,
sec. 1, effective July 14, 2000; and ch. 393, sec. 21, effective July 14, 2000. -Amended 1998 Ky. Acts ch. 483, sec. 14, effective July 15, 1998; and ch. 485, sec.
2, effective July 15, 1998. -- Amended 1982 Ky. Acts ch. 123, sec. 5, effective July
15, 1982; and ch. 320, sec. 14, effective July 15, 1982. -- Created 1970 Ky. Acts ch.
301, subtit. 9, sec. 27, effective June 18, 1970.
Legislative Research Commission Note (7/15/2002). Although 2002 Ky. Acts ch. 273,
sec. 26, contained a citation to "Section 54 of this Act" (codified as KRS 304.9-240)
in subsection (8), it is clear from the context that Section 53 (codified as KRS
304.99-100) was intended, and this manifest clerical or typographical error was
corrected in codification under the authority of KRS 7.136.
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