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304.9-280 Termination of licensee's appointment -- Notice requirements -- Civil
immunity -- Confidential and privileged information -- Commissioner's use of
information.
(1)
(2)
(3)
(4)
(5)
Subject to the agent contract rights of a rental vehicle agent, rental vehicle
managing employee, managing general agent, or agent, if any, an insurer may
terminate an appointment at any time. However, if any appointment is not
terminated on or prior to December 31, then on January 1 the fees designated shall
be due for submission as provided in KRS 304.9-270.
An insurer or authorized representative of the insurer that terminates the
appointment, employment, contract, or other insurance business relationship with a
licensee shall notify the commissioner within thirty (30) days following the
effective date of the termination, using a form or a format prescribed by the
commissioner, if the reason for termination is one (1) of the reasons set forth in
KRS 304.9-440 or if the insurer has knowledge the licensee was found by a court,
government body, or self-regulatory organization authorized by law to have engaged
in any of the activities in KRS 304.9-440. Termination under this subsection shall
be deemed termination for cause. Upon the written request of the commissioner the
insurer shall provide additional information, documents, records, or other data
pertaining to the termination or activity of the licensee.
An insurer or authorized representative of the insurer that terminates the
appointment of a licensee for any reason not set forth in subsection (2) of this
section, shall notify the commissioner within thirty (30) days following the effective
date of the termination, using a form or a format prescribed by the commissioner.
Termination under this subsection shall be deemed termination without cause. Upon
written request of the commissioner, the insurer shall provide additional
information, documents, records, or other data pertaining to the termination.
The insurer or the authorized representative of the insurer shall promptly notify the
commissioner in a form or a format acceptable to the commissioner if, upon further
review or investigation, the insurer discovers additional information that would
have been reportable to the commissioner in accordance with subsection (2) of this
section had the insurer known of its existence.
(a) Within fifteen (15) days after making the notification required for termination
without cause, the insurer shall mail a notice of the termination to the licensee
at his or her last known address by first-class mail. The notice of termination
shall include and indicate the reasons for termination provided to the
commissioner.
(b) Within fifteen (15) days after making the notification required for termination
for cause, the insurer shall provide a copy of the form to the licensee at his or
her last known address by certified mail, return receipt requested, postage
prepaid, or by overnight delivery using a nationally recognized carrier.
(c) Within thirty (30) days after the licensee has received a copy of the form, the
licensee may file written comments concerning the substance of the
notification with the commissioner. The licensee shall, by the same means,
simultaneously send a copy of the comments to the reporting insurer, and the
(6)
(a)
(b)
(c)
(7)
(a)
comments shall become a part of the commissioner's file and accompany
every copy of a report distributed or disclosed for any reason about the
licensee as permitted under subsection (7)(c) of this section.
1.
In the absence of actual malice, an insurer, the authorized representative
of the insurer, a licensee, the commissioner, or their respective
representatives or employees, or an organization of which the
commissioner is a member and that compiles the information and makes
it available to other insurance commissioners or regulatory or law
enforcement agencies, shall not be subject to civil liability, and a civil
cause of action of any nature shall not arise against these individuals,
entities, or their respective representatives or employees as a result of:
a.
Any statement or information required by or provided in
accordance with this section;
b.
Any information relating to any statement that may be requested in
writing from an insurer or licensee by the commissioner; or
c.
A statement by a terminating insurer or licensee to an insurer or
licensee that is limited solely and exclusively to whether a
termination for cause under subsection (2) of this section was
reported to the commissioner.
2.
The propriety of any termination for cause under subsection (2) of this
section shall be certified in writing by an officer or authorized
representative of the insurer or licensee terminating the relationship.
In any action brought against an individual, business entity, or organization
that may have immunity under paragraph (a) of this subsection for making any
statement required by this section or providing any information relating to any
statement that may be requested by the commissioner, the party bringing the
action shall plead specifically in any allegation that paragraph (a) of this
subsection does not apply because the individual, business entity, or
organization making the statement, or providing the information did so with
actual malice.
Paragraph (a) or (b) of this subsection shall not abrogate or modify any
existing statutory or common law privileges or immunities.
1.
Any document, material, or other information in the control or
possession of the department that is furnished by an insurer, licensee, or
an employee or representative acting on behalf of the insurer or licensee,
or obtained by the commissioner in an investigation in accordance with
this section:
a.
Shall be confidential by law and privileged;
b.
Shall not be subject to subpoena; or
c.
Shall not be subject to discovery or admissible in evidence in any
private civil action.
Notwithstanding subdivisions a., b., and c. of this subparagraph, any
document, material, or other information that is furnished by an insurer,
(b)
(c)
(d)
(e)
(f)
licensee, or an employee or representative acting on behalf of the insurer
or licensee, or obtained by the commissioner in an investigation in
accordance with this section, that is used in a formal administrative
proceeding or enforcement action in accordance with KRS Chapter 13B
shall be subject to the Kentucky Open Records Act.
2.
However, the commissioner is authorized to use the documents,
materials, or other information referred to in paragraph (a)1. of this
subsection in the furtherance of any regulatory or legal action brought to
carry out the commissioner's duties.
Neither the commissioner nor any individual who received documents,
materials, or other information while acting under the authority of the
commissioner, shall be permitted or required to testify in any private civil
action concerning any confidential documents, materials, or information
subject to paragraph (a) of this subsection.
In order to assist in the performance of the commissioner's duties, as set forth
in KRS 304.2-100, the commissioner:
1.
May share documents, materials, or other information, including the
confidential and privileged documents, materials, or information subject
to paragraph (a) of this subsection, with other state, federal, and
international regulatory agencies, with the National Association of
Insurance Commissioners, its affiliates, or subsidiaries, and with state,
federal, and international law enforcement authorities, provided that the
recipient agrees to maintain the confidentiality and privileged status of
the documents, materials, or other information;
2.
May receive documents, materials, or information, including otherwise
confidential and privileged documents, materials, or information, from
the National Association of Insurance Commissioners, its affiliates or
subsidiaries, and from regulatory and law enforcement officials of other
foreign or domestic jurisdictions, and shall maintain as confidential or
privileged any documents, materials, or information received with notice
or the understanding that it is confidential or privileged under the laws
of the jurisdiction that is the source of the documents, materials, or
information; and
3.
May enter into agreements governing sharing and use of information
consistent with this subsection.
No waiver of any applicable privilege or claim of confidentiality in the
documents, materials, or information shall occur as a result of disclosure to
the commissioner or of sharing as authorized in this subsection.
The commissioner shall release only final, adjudicated actions, including forcause terminations that are open to public inspection in accordance with the
Kentucky Open Records Act, KRS 61.870 to 61.884.
As part of the nonresident license certification process, the department shall
release only final adjudicated actions on licensees identified in subsection (1)
of this section.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1064, effective July 15, 2010; and ch. 83,
sec. 7, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 143, sec. 13, effective
June 20, 2005. -- Amended 2000 Ky. Acts ch. 393, sec. 22, effective July 14, 2000. -Amended 1998 Ky. Acts ch. 485, sec. 3, effective July 15, 1998. -- Created 1970 Ky.
Acts ch. 301, subtit. 9, sec. 28, effective June 18, 1970.
Legislative Research Commission Note (7/15/2010). This section was amended by
2010 Ky. Acts chs. 24 and 83, which do not appear to be in conflict and have been
codified together.
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