KRS 304.10-030: Definitions for Subtitle 10.

As used in this subtitle:

(1) "Admitted insurer" means an insurer that is licensed or authorized to transact the

business of insurance in Kentucky;

(2) "Affiliate" means, with respect to an insured, any entity that controls, is controlled

by, or is under common control with the insured;

(3) "Broker" means a surplus lines broker duly licensed as such under this subtitle;

(4) "Exempt commercial purchaser" means any person purchasing commercial

insurance that, at the time of placement, meets the following requirements:

(a) The person employs or retains a qualified risk manager to negotiate insurance

coverage;

(b) The person has paid aggregate nationwide commercial property and casualty

insurance premium in excess of one hundred thousand dollars ($100,000) in

the immediately preceding twelve (12) months;

(c) 1. The person meets at least one (1) of the following criteria:

a. The person possesses a net worth in excess of twenty million

dollars ($20,000,000), adjusted pursuant to subparagraph 2. of this

paragraph;

b. The person generates annual revenues in excess of fifty million

dollars ($50,000,000), as adjusted pursuant to subparagraph 2. of

this paragraph;

c. The person employs more than five hundred (500) full-time or full-

time equivalent employees per individual insured or is a member

of an affiliated group employing more than one thousand (1,000)

employees in the aggregate;

d. The person is a not -for-profit organization or public entity

generating annual budgeted expenditures of at least thirty million

dollars ($30,000,0000), adjusted pursuant to subparagraph 2. of

this paragraph; or

e. The person is a municipality with a popula tion in excess of fifty

thousand (50,000) persons.

2. Effective on the fifth January 1 occurring after July 12, 2012, and each

fifth January 1 occurring thereafter, the amounts in subparagraph 1.a., b.,

and d. of this paragraph shall be adjusted to reflect the percentage

change for the five (5) year period in the consumer price index for all

urban consumers published by the Bureau of Labor Statistics of the

Department of Labor;

(5) To "export" means to place in an unauthorized insurer under this Surplus Lines Law

insurance covering a subject of insurance resident, located or to be performed in

Kentucky;

(6) "Home state" means:

(a) 1. The state in which an insured maintains its principal place of business

or, in the case of an individual, the individual's principal residence; or

2. If one hundred percent (100%) of the insured risk is located out of the

state referred to in subparagraph 1. of this paragraph, the state to which

the greatest percentage of the insured's taxable premium for that

insurance contract is allocated; or

(b) If more than one (1) insureds from an affiliated group are named insureds on a

single nonadmitted insurance contract, the home state, as determined pursuant

to paragraph (a) of this section, of the member of the affiliated group that h as

the largest percentage of premium attributed to it under the insurance contract;

(7) "Nonadmitted insurance" means:

(a) Any property and casualty insurance permitted to be placed directly or through

a surplus lines broker with a nonadmitted insurer elig ible to accept the

insurance; and

(b) Any health and life insurance providing disability coverage:

1. With policy limits in excess of those available from an admitted insurer;

2. With participation limits; or

3. Insuring occupations for which coverage is n ot procurable through an

admitted insurer;

(8) "Nonadmitted insurer" means an insurer that is not authorized or admitted to

transact the business of insurance in Kentucky; and

(9) "Surplus lines" means nonadmitted insurance sold to, solicited by, or negoti ated

with an insured whose home state is Kentucky.