KRS 304.20-065: Coverage for motor vehicle loaned as replacement.

Every motor vehicle insurance policy insuring a motor vehicle with coverage for

collision, bodily injury, and property damage liability, or all three (3), licensed in this

state shall extend these coverages to cover the insured individual's negligence whil e

operating a motor vehicle which is loaned, with or without consideration, to the insured

individual as a replacement vehicle while the insured's vehicle is out of use because of

breakdown, repair, or servicing and if the other motor vehicle is loaned by a person, firm,

or corporation engaged in the business of selling, repairing, and servicing motor vehicles.

Such extension of coverage shall include coverage for damage to or loss of the loaned

vehicle as a result of the negligence of the insured.