KRS 304.9-100: Purpose of license -- "Controlled business" -- Exceptions.

(1) The purpose of a license issued under this subtitle to an insurance producer is to

authorize and enable the licensee actively and in good faith to engage in the

business of insurance with respect to the general public, and to facilitate the public

supervision of such activities in the public interest; and not for the purpose of

enabling the licensee to receive a rebate of premium in the form of "commission" or

other compensation upon his or her own interest or upon those of other persons with

whom he or she is closely associated in capacities other than as an insurance

producer.

(2) The commissioner shall not grant, renew, continue, or permit to exist any license of

an insurance producer as to any applicant therefor or licensee thereunder if he or she

finds that the license has been or is being or will probably be used by the applicant

or licensee principally for the purpose of writing "controlled business," that is:

(a) Insurance on his or her own interest or those of his or her family or of his or

her employer; or

(b) Insurance or annuity contracts covering himself, herself, or members of his or

her family, or the officers, directors, stockholders, partners, employees, or

debtors of a partnership, association, or corporation of which he or she, or a

member o f his or her family, is an officer, director, stockholder, partner,

associate, or employee.

(3) Such a license shall be deemed to have been, or intended to be, used principally for

the purpose of writing controlled business if the commissioner finds that d uring any

twelve (12) months' period the aggregate premiums accruing or to accrue from

controlled business have exceeded or probably will exceed the aggregate premiums

accruing or to accrue on other business written or probably to be written by the

applicant or licensee during the same period.

(4) This section shall not apply as to:

(a) Insurance of the interest of a motor vehicle sales or financing agent in a motor

vehicle sold or financed by it;

(b) Insurance of the interest of real property mortgagee in the mortgaged property,

except title insurance;

(c) Limited line credit insurance; and

(d) Rental vehicle insurance.