KRS 304.22-040: Prohibition against guaranteeing obligations executed by others --

Exceptions.

An insurer shall not in any manner guarantee the payment of the principal or the interest

of bonds or other obligations executed by others, other than (a) in connection with the

handling of litigation relating to losses or claims involving the insurer, its insureds, its

agents or its attorneys, or (b) in connection with the settlement of such losses or claims,

or (c) in the event such guarantee is specifically approved by the commissioner.