KRS 304.9-020: Definitions for subtitle.

As used in this subtitle:

(1) "Agent" means a person who sells, solicits, or negotiates insurance or annuity

contracts;

(2) "Appointment" means a notification filed with the insurance department that an

insurer has established an agency relationship with a producer;

(3) "Appointment re newal" means continuation of an insurer's existing appointment

based on payment of the required fee without submission of an appointment form;

(4) "Apprentice adjuster" means an individual who meets the qualification

requirements to hold a license as an independent, staff, or public adjuster, except for

the experience, education, and training requirements;

(5) "Business entity" means a corporation, association, partnership, limited liability

company, limited liability partnership, employer group, profession al employer

organization, or other legal entity;

(6) "Catastrophe" means an event that results in a declaration of emergency by the

Governor pursuant to KRS 39A.100 and:

(a) A large number of deaths or injuries;

(b) Extensive damage or destruction of facil ities that provide and sustain human

needs;

(c) An overwhelming demand on state and local response resources and

mechanisms;

(d) A severe long-term effect on general economic activity; or

(e) A severe effect on state, local, and private sector capabilities to begin and

sustain response activities;

(7) "Crop insurance" means insurance providing protection against damage to crops

from unfavorable weather conditions, fire or lightning, flood, hail , insect

infestation, disease, or other yield -reducing conditions or perils provided by the

private insurance market or that is subsidized by the Federal Crop Insurance

Corporation, including multi-peril crop insurance;

(8) "Home state" means the District of Columbia and any state or territory of the

United States in which a licensee maintains his or her principal place of residence

or principal place of business and is licensed by that state;

(9) "Independent adjuster" means a person who:

(a) Is an independent contractor, an employee of an independent contractor, or for

tax purposes is treated as an independent contractor under Subtitle C of the

Internal Revenue Code, 26 U.S.C. sec. 3101 et seq.;

(b) Is compensated by an insurer or self-insurer; and

(c) Investigates, negotiates, or settles property, casualty, or workers'

compensation claims for insurers or self-insurers;

(10) "Insurance producer":

(a) Means an individual or business entity required to be licensed under the laws

of Kentucky to sell, solicit, or negotiate insurance or annuity contracts; and

(b) Includes an agent, managing general agent, surplus lines broker, reinsurance

intermediary broker and manager, rental vehicle agent and rental vehicle

agent managing employee, and consultant;

(11) "Limited line credit insurance" includes credit life, credit disability, credit property,

credit unemployment, involuntary unemployment, mortgage life, mortgage

guaranty, mortgage disability, guaranteed automobile protection insurance, and any

other form of insur ance offered in connection with an extension of credit that is

limited to partially or wholly extinguishing that credit obligation that the

commissioner determines should be designated a form of limited line credit

insurance;

(12) "Limited line credit insu rance agent" means an individual or business entity who

sells, solicits, or negotiates one (1) or more forms of limited line credit insurance

coverage to individuals through a master, corporate, group, or individual policy;

(13) "Limited lines insurance" means:

(a) The lines of insurance defined in subsections (7), (11), (23), (27), and (29) of

this section; and

(b) Any other line of insurance that the commissioner identifies in accordance

with KRS 304.9 -230(1)(g) or recognizes for the purpose of complying with

KRS 304.9-140(5);

(14) "Negotiate":

(a) Means the act of conferring directly with, or offering advice directly to, a

purchaser or prospective purchaser of a particular contract of insurance

concerning any of the substantive benefits, terms, or conditi ons of the

contract, provided that the person engaged in that act either sells insurance or

obtains insurance from insurers for purchasers; and

(b) Unless the context requires otherwise, does not include negotiating a claims

settlement;

(15) "Pharmacy bene fit manager" means an entity that, on behalf of a health benefit

plan, state agency, insurer, managed care organization providing services under

KRS Chapter 205, or other third-party payor:

(a) Contracts directly or indirectly with pharmacies to provide pr escription drugs

to individuals;

(b) Administers a prescription drug benefit;

(c) Processes or pays pharmacy claims;

(d) Creates or updates prescription drug formularies;

(e) Makes or assists in making prior authorization determinations on prescription

drugs;

(f) Administers rebates on prescription drugs; or

(g) Establishes a pharmacy network;

(16) "Portable electronics" means electronic devices that are portable and the accessories

and services related to the use of the device;

(17) "Portable electronics insurance":

(a) Means insurance providing coverage for the repair or replacement of portable

electronics for any one (1) or more of the following:

1. Loss;

2. Theft;

3. Inoperability due to mechanical failure;

4. Malfunction;

5. Damage; or

6. Other similar causes of loss; and

(b) Does not include:

1. A service contract governed by KRS 304.5-070;

2. A policy of insurance covering a seller's or manufacturer's obligations

under a warranty; or

3. A homeowner's, renter's, private passenger automobile, commercial

multi-peril, or similar policy;

(18) "Portable electronics insurance supervising entity" means a business entity that is a

licensed insurer or insurance agent that is appointed by an insurer to supervise the

administration of a portable electronics insurance program;

(19) "Portable electronics retailer" means a licensed business entity that offers a nd sells

portable electronic devices and offers and disseminates portable electronics

insurance on behalf and under the direction of a portable electronics insurance

supervising entity;

(20) "Public adjuster":

(a) Means any person who:

1. For compensation or reward paid by or on behalf of an insured, renders

advice or assistance to the insured in a first -party claim for loss or

damages under any policy, certificate, or contract of insurance covering

real or personal property; or

2. Advertises, solicits busi ness, or holds itself out to the public as an

adjuster described in subparagraph 1. of this paragraph; and

(b) Does not include:

1. An attorney licensed to practice law in Kentucky, when acting in his or

her professional capacity as an attorney; or

2. A person employed only for the purpose of obtaining facts surrounding

a loss or furnishing technical assistance to a licensed public adjuster,

including photographers, estimators, private investigators, engineers,

and handwriting experts;

(21) "Rental vehicle agent" means a business entity with a rental vehicle agent managing

employee that is licensed to sell, solicit, or negotiate insurance offered, sold, or

solicited in connection with, and incidental to, the rental of rental vehicles, whether

at the rental o ffice or by preselection of coverage in master, corporate, or group

agreements that:

(a) Are nontransferable;

(b) Apply only to the rental vehicle that is the subject of the rental agreement; and

(c) Are limited to the following kinds of insurance:

1. Personal accident insurance for renters and other rental vehicle

occupants for accidental death or dismemberment and for medical

expenses resulting from an accident that occurs with the rental vehicle

during the rental period;

2. Liability insurance that provides protection to the renters and other

authorized drivers of a rental vehicle for liability arising from the

operation or use of the rental vehicle during the rental period;

3. Personal effects insurance that provides coverag e to renters and other

vehicle occupants for loss of or damage to personal effects in the rental

vehicle during the rental period;

4. Roadside assistance insurance;

5. Emergency sickness protection insurance; or

6. Any other coverage designated by the commissioner;

(22) "Rental vehicle agent managing employee" means an individual who:

(a) Is a salaried full -time employee of a licensed rental vehicle agent business

entity that holds a license under KRS 304.9-505; and

(b) Is responsible for the supervision of the other employees engaged in the

placement of insurance;

(23) "Rental vehicle insurance" means insurance underwritten by an insurer authorized

to transact business in Kentucky that is sold in connection with, and incidental to, a

rental vehicle agreement;

(24) "Sell" means to exchange a contract of insurance by any means, for money or other

valuable consideration, on behalf of an insurer;

(25) "Solicit" means attempting to sell insurance or asking or urging a person to apply

for a particular kind of insurance from a particular insurer;

(26) "Staff adjuster" means an individual who is an employee of an insurer who

investigates, negotiates, or settles property, casualty, or workers' compensation

claims on behalf of his or her employer;

(27) "Surety" means i nsurance or bond that covers obligation to pay the debts of, or

answer for the default of another, including faithlessness in a position of public or

private trust. Surety also includes surety insurance as defined in KRS 304.5-060;

(28) "Terminate" means t he cancellation of the relationship between an insurance

producer and the insurer or the termination of an insurance producer's authority to

transact insurance;

(29) "Travel insurance" has the same meaning as in KRS 304.52-010;

(30) "Uniform business entit y application" means the current version of the uniform

business entity application for resident and nonresident business entities; and

(31) "Uniform individual application" means the current version of the uniform

individual application for resident and nonresident individuals.