KRS 304.12-100: Exceptions to discrimination and rebate prohibition.

Nothing in KRS 304.12 -080, 304.12 -090, or 304.12 -110 shall be construed as

prohibiting:

(1) Payment of lawfully earned commission or other lawful compensation to duly

licensed insurance producers, as defined in KRS 304.9 -020, or compensation

disclosed in a written disclosure agreement, as described in KRS 304.11-042;

(2) Distribution by a participating insurer to its participating policyholders of dividends,

savings, or the unused or unabsorbed portion of premiums and premium deposits;

(3) (a) Furnishing of information, advice, programs, products, or services that are

intended to:

1. Reduce the future cost of insurance to the policyholder or the probability

or severity of loss;

2. Assist in the efficient administration and management of the

policyholder's insurance program; or

3. Assist the client in complying with any state or federal law.

(b) Such information, advice, programs, products, or services shall include but are

not limited to providing software to administer an insured's employee benefits

or risk management programs, employee wellness programs, risk management

services, loss control services, and workers' compensation analysis

forecasting;

(4) Life insurers from paying bonuses to policyholders or otherwise abating their

premiums in whole or in part out of surplus accumulated from nonparticipating

insurance, if such bonus or abatement is fair and equitable to all policyholders and

for the best interests of the insurer and its policyholders;

(5) In the case of insurance policies issued on the debit pl an, making allowance to

policyholders who have continuously for a specified period made premium

payments directly to an office of the insurer in an amount which fairly represents

the savings in collection expense or making allowance to policyholders who ma ke

premium payments at less frequent intervals than required;

(6) Readjustment of the rate of premium for a group insurance policy based on the loss

or expense experience thereunder, at the end of any policy year of insurance

thereunder, which may be made retroactive only for such policy year;

(7) An insurer from waiving , in whole or in part, a policyholder's deductible for food

spoilage for an insured risk located in a county declared to be a federal disaster area;

(8) Payment of any compensation, fee, or other consideration to an individual not

licensed to sell insuranc e if such individual sells, solicits, or negotiates rental

vehicle insurance in accordance with KRS 304.9 -507 or for the referral of a

consumer to a licensed individual in accordance with KRS 304.9-425;

(9) Any conduct permitted under KRS 304.12-092; or

(10) Charitable contributions by an insurer or insurance producer, as defined in KRS

304.9-020, unless the contributions are made in connection with the purchase or

renewal of insurance.