KRS 304.20-041: Prohibition against insurer's refusing to reissue motor vehicle liability

policy or imposing additional premium because of uninsured status under

certain conditions.

(1) An insurer, with whom a person was most recently insured under a motor vehicle

liability insurance policy, shall not refuse to issue a policy of motor vehicle liability

insurance nor impose an additional premium solely because the person is uninsured

at the time of reapplication, if the person demonstrates that:

(a) During the period he was without insurance, he did not own a motor vehicle,

the registration on the insured motor vehicle was canceled because he was

absent from the Commonwealth, the motor vehicle was out of use, or

inoperable and under repair, or he was unable to pay the premium renewal due

to unemployment or other bona fide economic hardship; and

(b) During the period the person was without insurance, he was not convicted of

any traffic violation under the laws of the Commonwealth; and the

reapplication was made within twenty-four (24) months of the nonrenewal of

the policy.

(2) This section shall not be construed to permit the owner of the motor vehicles or any

other person to operate or to permit the operation of the motor vehicle in this

Commonwealth until the security has again been provided pursuant to Subtitle 39 of

this chapter.