KRS 304.13-342: Property insurance for wind or hail coverage -- Certificate of

compliance -- Premium discount or rate reduction -- Administrative

regulations.

(1) (a) All insurance companies writing property insurance for wind or hail coverage

of any property located in Kentucky that has been certified as complying with

the most recent version of any applicable FORTIFIED Home or FORTIFIED

Multifamily construction standards published by the Insurance Institute for

Business and Home Safety or a successor entity:

1. Shall provide a premium discount or rate reduction on the coverage if:

a. The discount or reduction is actuarially justified; and

b. There is sufficient and credible evidence of cost savings that can

be attributed to the construction standards; and

2. May provide:

a. A premium discount or rate reduction on the coverage in

accordance with any standard discount amounts, targets, or

benchmarks established under subsection (3) of this section; and

b. Any other adjustment on the coverage.

(b) A premium d iscount, rate reduction, or other adjustment provided under

paragraph (a) of this subsection shall be subject to the rate filing and other

applicable regulatory requirements of this chapter, including but not limited to

KRS 304.13-051.

(2) (a) As used in this subsection, "certificate of compliance" means a certificate of

compliance with the most recent version of any applicable FORTIFIED Home

or FORTIFIED Multifamily construction standards from the Insurance

Institute for Business and Home Safety or a successor entity.

(b) An insurer that offers a premium discount, rate reduction, or other adjustment

under subsection (1)(a) of this section shall provide the discount, reduction, or

adjustment on the coverage of an insured's property located in Ken tucky if the

insurer obtains or receives a certificate of compliance for the property.

(c) An insurer is not required to obtain or receive a certificate of compliance in

order to provide a premium discount, rate reduction, or other adjustment

under subsection (1)(a) of this section.

(3) (a) The commissioner may promulgate administrative regulations in accordance

with KRS Chapter 13A that establish standard discount amounts, targets, or

benchmarks for the coverage of any property located in Kentucky that has

been certified as complying with the most recent version of any applicable

FORTIFIED Home or FORTIFIED Multifamily construction standards

published by the Insurance Institute for Business and Home Safety or a

successor entity.

(b) Any standard discount am ounts, targets, or benchmarks promulgated under

paragraph (a) of this subsection shall be:

1. Optional; and

2. Primarily for the benefit of insurers that are unable to obtain actuarially

valid data to provide a premium discount or rate reduction under

subsection (1)(a)1. of this section due to inadequate resources or

experience.

(c) The authority granted to the commissioner to promulgate administrative

regulations under this subsection shall be in addition to any other authority

granted to the commissioner to promulgate administrative regulations,

including but not limited to KRS 304.2-110.