Ky Law + Regs

Every unauthorized insurer must pay a premium tax of what percentage of gross premiums charged for insurance on subject’s residence, located or to be performed in this state?

3%

Licensees must complete how many classroom hours of CE credit each biennium?

12 hours

What does biennium mean?

Period of 2 years

The premium tax for unauthorized insurers writing surplus lines is…

3%

If an insurance policy provides for the adjustment and settlement of losses on an ACV basis on residential fire and extended coverage, the insurer must determine ACV as:

replacement cost of property at the time of loss less depreciation, if any

Controlled business refers to the writing of what percentage of all insurance business on the interest of the agent, the agent’s family, or the agent’s business associates?

50%

The requirement of security payment of tort liabilities may be fulfilled by providing single limits liability coverage of at least…

$60,000.00

Who is exempt from the biennial CE requirements for licensees in KY?

A licensee who has held their license for only 6 months prior to the termination of the biennium

A provision that lessens the amount of benefit for a specified condition is known as…

a reduction

the requirement of security for payment of tort liabilities may be fulfilled by providing split limits liability coverage of at least:

$25,000 per injury, $50,000 per accident, and $10,000 property damage

Producers licenses must be renewed after how many years?

2

A premium finance company may not charge more than what amount per $100 per year, plus an additional charge of what per finance contract?

$12/$15

Who is the Commissioner of Insurance appointed by?

the governor

What types of claims will the Kentucky Insurance Guaranty Association pay in full, regardless of amount?

Benefits arising from a workers’ compensation insurance policy

A licensee must notify the Commissioner of a change in the licensee’s legal name or address within…

30 days of the change

Binders may be valid for a maximum of…

90 days

A temporary insurance license is issued for up to…

180 days

An excess rate form must be filed with the Commissioner within…

10 days following the effective date of the policy

An insurer must acknowledge receipt of notice of a claim within…

15 calendar days

What is a domestic insurer?

an insurer formed under the laws of KY

What is a foreign insurer?

an insurer formed under the laws of any state other than KY

What is an alien insurer?

an insurer formed under the laws of any country other than the United States

The Kentucky continuing education requirement for each continuing education biennium is…

24 hours of courses

An applicant for a license as an insurance consultant must be at least…

18 years old

An applicant for a resident agent license must be at least…

18 years old

Individual licensees whose birth dates are in even-numbered years must submit the license renewal request…

by the last day of the licensee’s birth month in even-numbered years

A notification filed with the insurance department that an insurer has established an agency relationship with a producer is…

an appointment

If a person’s license has been revoked twice, when may the person be issued a new license?

never

To be licensed as a surplus lines broker, an applicant must file a bond in the amount of…

$50,000

Surplus lines insurance may be written…

only when the desired coverage cannot be obtained from authorized insurers

An insurer must generally offer any payment due on a claim within how many days after receiving proof of loss?

30 days

An insurer that cancels a property or casualty insurance policy for nonpayment of premiums must provide notice to the insured at least how many days before the effective date of the cancellation?

14 days

What is the youngest age at which a person can purchase an insurance policy on his own property interests?

15 years

How long do records need to be retained for after policy expiration?

5 years

Advertisements must be maintained for at least...

3 years

For insurance fraud, if the fraud amount is less than or equal to $500, what is the maximum year(s) of imprisonment?

1 year

What is the maximum amount of year(s) of imprisonment if the fraud amount is in excess of $500?

5 years

What is the purpose of the KY FAIR Plan?

provide property and casualty insurance to individuals who cannot obtain coverage through the norma insurance market

What does the FAIR acronym stand for?

Fair Access to Insurance Requirements

A notice must be sent how many days prior to expiration date for nonrenewal?

75 days

By examining the insurer’s records, the head of the department of insurance assesses the insurer’s…

complaince with state laws

“An individual who negotiates insurance coverage for compensation on behalf of an insurer” best describes…

an agent