KRS 304.45-130: Unlicensed person prohibited from acting as agent for risk retention

group or purchasing group.

(1) No person shall act or aid in any manner in soliciting, negotiating, or procuring

liability insurance in this state from a risk retention group unle ss such person is

licensed as an insurance agent in accordance with Subtitle 9 of this chapter.

(a) However, no such license shall be required of salaried employees of a risk

retention group not compensated based on the volume of business.

(b) A risk retention group is responsible for the acts of its agents or other persons

acting on its behalf in the solicitation, negotiation, or procurement of liability

insurance or the acceptance of premiums for liability insurance.

(c) Any person required by this sectio n to be licensed as an insurance agent shall

give notice to each applicant that any policy issued by a risk retention group

may not be subject to all of the insurance laws and administrative regulations

of the Commonwealth and that state insurance insolven cy guaranty funds are

not available for risk retention groups.

(2) No person shall act or aid in any manner in soliciting, negotiating, or procuring

liability insurance in this state for a purchasing group from an authorized insurer,

risk retention group c hartered in a state, or a surplus lines insurer eligible to do

business in this state unless such person is licensed as insurance agent or surplus

lines broker in accordance with Subtitles 9 and 10 of this chapter.

(3) No person shall act or aid in any man ner in soliciting, negotiating, or procuring

liability insurance coverage in this state for any member of a purchasing group

under a purchasing group's liability insurance policy unless such person is licensed

as an insurance agent in accordance with Subtitle 9 of this chapter.

(a) No license shall be required of salaried employees of an insurer or of a

purchasing group who are not compensated based on the volume of business.

(b) An insurer issuing a liability insurance policy to a purchasing group is

responsible for the acts of its agents or other persons acting on its behalf in the

solicitation, negotiation, or procurement of liability insurance or the

acceptance of premiums for liability insurance.