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304.9-425 Payment or acceptance of commission, brokerage, or other valuable
consideration -- Exception.
(1)
(2)
(3)
(4)
(5)
No insurer, financial institution, agent, surplus lines broker, adjuster, administrator,
reinsurance intermediary broker or manager, rental vehicle agent or managing
employee, life settlement broker or provider, or consultant shall pay, directly or
indirectly, any commission, brokerage, or other valuable consideration to any
individual or business entity for services as an agent, surplus lines broker, adjuster,
administrator, reinsurance intermediary broker or manager, rental vehicle agent or
managing employee, life settlement broker or provider, or consultant within this
state, unless the individual or business entity held at the time the services were
performed a valid license for that line of insurance as required by the laws of this
state for the services.
No individual or business entity, other than an individual or business entity duly
licensed by this state as an agent, surplus lines broker, adjuster, administrator,
reinsurance intermediary broker or manager, rental vehicle agent or managing
employee, life settlement broker or provider, or consultant at the time the services
were performed, shall accept any commission, brokerage, or other valuable
consideration for those services, unless the individual or business entity is licensed
at the time the services were performed, if a license is required by law.
This section shall not prevent payment or receipt of renewal or other deferred
commissions to or by any individual or business entity entitled under this section.
Services as an agent, surplus lines broker, adjuster, administrator, reinsurance
intermediary broker or manager, rental vehicle agent or managing employee, or
consultant within this state shall not include a referral by an unlicensed person of a
consumer to a licensed agent, surplus lines broker, adjuster, administrator,
reinsurance intermediary broker or manager, rental vehicle agent or managing
employee, or consultant that does not include a discussion of specific insurance
policy terms and conditions.
An insurer, financial institution, agent, surplus lines broker, adjuster, administrator,
reinsurance intermediary broker or manager, rental vehicle agent or managing
employee, or consultant may pay any compensation, fee, or other consideration to
an individual not licensed to sell insurance for the referral of a consumer to a
licensed individual, only if the consideration is paid regardless of whether the
insurance coverage is sold to the consumer.
Effective: June 25, 2013
History: Amended 2013 Ky. Acts ch. 123, sec. 2, effective June 25, 2013. -- Amended
2010 Ky. Acts ch. 83, sec. 10, effective July 15, 2010. -- Amended 2008 Ky. Acts ch.
32, sec. 18, effective July 15, 2008. -- Amended 2002 Ky. Acts ch. 273, sec. 33,
effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 393, sec. 31, effective July
14, 2000. -- Created 1982 Ky. Acts ch. 171, sec. 6, effective July 15, 1982.
Legislative Research Commission Note (7/15/2008). 2008 Ky. Acts ch. 32 intended to
change all existing references in the KRS from "viatical settlements" to "life
settlements." One reference to "viatical settlement" in this section was overlooked
during the bill drafting process. The Reviser of Statutes has made this change upon
the authority of KRS 7.136(1)(h).
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