KRS 217B.130: Financial responsibility.

(1) The department shall not issue or renew a dealer registration to a dealer applying

pesticides to the lands of others until the applicant has furnished evidence of

financial responsibility with the department consisting either of a surety bond or a

liability insurance policy, or certification of the bond or policy, protecting persons

who may suffer legal damages as a result of the applicant.

(2) The amount of the surety bond or liability insurance as provided for in this section

shall be not less than one mi llion dollars ($1,000,000). The surety bond or liability

insurance shall be maintained at not less than that amount at all times during the

licensed period. The department shall be notified ten (10) days prior to any

reduction at the request of the applica nt or cancellation of the surety bond or

liability insurance by the surety or insurer. The total and aggregate of the surety and

insurer for all claims shall be limited to the face of the bond or liability insurance

policy. The department may accept a liability insurance policy or surety bond in the

proper sum which has a deductible clause in an amount not exceeding one thousand

dollars ($1,000) for all applicators for the total amount of liability insurance or

surety bond required. If the applicant has not satisfied the requirements of the

deductible amount in any prior legal claim, the deductible clause shall not be

accepted by the department unless the applicant furnishes the department with a

security bond or liability insurance which shall satisfy the a mount of the deductible

as to all claims that may arise in his application of pesticides.

(3) Should the surety furnished become unsatisfactory, the applicant shall upon notice

execute a new bond or insurance and shall he fail to do so, the department shal l

cancel the registration and it shall be unlawful for the person to engage in the

business of applying pesticides until the bond or insurance is brought into

compliance with the requirements of subsection (2) of this section and the

registration is reinstated by the department.

(4) Nothing in this chapter shall be construed to relieve any person from liability for

any damage to the person or lands of another caused by the use of pesticides even

though the use conforms to the administrative regulations of the department.