KRS 304.20-310: Definitions for KRS 304.20-320 to 304.20-350.

As used in KRS 304.20-320 to 304.20-350:

(1) "Renewal" or "to renew" means the issuance and delivery by an insurer at the end of

a policy period or term of a policy superseding a policy previously issued and

delivered by the same insurer, or the issuance a nd delivery of a certificate or notice

extending the term of an existing policy beyond its policy period or term. For the

purpose of KRS 304.20 -320 to 304.20 -350, any policy period or term of less than

six (6) months shall be considered to be a policy peri od or term of six (6) months,

and any policy period or term of more than one (1) year or any policy with no fixed

expiration date shall be considered a policy period or term of one (1) year;

(2) "Nonpayment of premium" means the failure of the named insure d to discharge any

obligation in connection with the payment of premiums on property or casualty

insurance subject to KRS 304.20 -320 to 304.20 -350, whether such payments are

directly payable to the insurer or its agent or indirectly payable under a premium

finance plan or extension of credit. "Nonpayment of premium" shall include failure

to pay dues or fees where payment of such dues or fees is a prerequisite to obtaining

or continuing property or casualty insurance coverage;

(3) "Termination" means either a cancellation or nonrenewal of property or casualty

insurance coverage in whole or in part. A cancellation occurs during the policy

period or term as set forth in subsection (1) of this section. A nonrenewal occurs at

the end of the policy period or term as set forth in subsection (1) of this section. For

the purpose of KRS 304.20 -320 to 304.20 -350, the transfer of a policyholder

between companies within the same insurance group shall be considered a

termination, but requiring a reasonable deductible, reas onable changes in the

amount of insurance, or reasonable reductions in policy limits or coverage shall not

be considered a termination if such requirements are directly related to an increased

hazard involved and are made on the renewal date for the policy;

(4) "Declination" means either the refusal of an insurer to issue a property or casualty

insurance policy upon receipt of a written nonbinding application or written request

for coverage from its agent or an applicant, or refusal of an agent to transmit to an

insurer a written nonbinding application or written request for coverage received

from an applicant. For the purposes of KRS 304.20 -320 to 304.20-350, the offering

of insurance coverage with a company within an insurance group which is different

from the company requested on the nonbinding application or written request for

coverage, or the offering of insurance upon different terms than requested in the

nonbinding application or written request for coverage, shall be considered to be a

declination; and

(5) "Agent" includes, but is not limited to, surplus lines broker.