KRS 304.10-080: Evidence of the insurance -- Changes -- Penalty.

(1) Upon placing a surplus lines coverage, the broker shall promptly issue and deliver

to the insured evidence of the insurance consisting either of the policy as issued by

the insurer, or, if such policy is not then available, the surplus lines broker's

certificate. Such a certificate shall be executed by the broker and shall show the

description and location of the subject of the insurance, coverage, conditions and

term of the insurance, the premium and rate charged and taxes collected from the

insured, and t he name and address of the insured and insurer. If the direct risk is

assumed by more than one (1) insurer, the certificate shall state the name and

address and proportion of the entire direct risk assumed by each such insurer.

(2) No broker shall issue an y such certificate or any cover note or purport to insure or

represent that insurance will be or has been granted by any unauthorized insurer,

unless he has prior written authority from the insurer for the insurance or has

received information from the ins urer in the regular course of business that such

insurance has been granted, or an insurance policy providing the insurance actually

has been issued by the insurer and delivered to the insured.

(3) If after the issuance and delivery of any such certificate there is any change as to the

identity of the insurers, or the proportion of the direct risk assumed by an insurer as

stated in the broker's original certificate, or in any other material respect as to the

insurance evidenced by the certificate, the broker shall promptly issue and deliver to

the insured a substitute certificate accurately showing the current status of the

coverage and the insurers responsible thereunder.

(4) If a policy issued by the insurer is not available upon placement of the insurance and

the broker has issued and delivered his certificate as hereinabove provided upon

request therefor by the insurer the broker shall as soon as reasonably possible

procure from the insurer its policy evidencing such insurance and deliver such

policy to the insured in replacement of the broker's certificate theretofore issued.

(5) Any surplus lines broker who knowingly or negligently issues a false certificate of

insurance, or who fails promptly to notify the insured of any material change with

respect to such insurance by delivery to the insured of a substitute certificate as

provided in subsection (3) of this section, shall upon conviction be subject to the

penalty provided by Subtitle 99 of this chapter or to any greater applicable penalty

otherwise provided by law.