KRS 304.9-105: General qualifications for agent license.

(1) An individual applying for an agent license shall make application to the

commissioner on the uniform individual application or other application prescribed

by the commissioner. Before approving the application, the commissioner shall find

that the applicant:

(a) Is at least eighteen (18) years of age;

(b) Has fulfilled the residence requirements as set forth in KRS 304.9 -120 or is a

nonresident who is not eligible to be issued a license in accordance with KRS

304.9-140;

(c) Has not committed any act that i s a ground for denial, suspension, or

revocation set forth in KRS 304.9-440;

(d) Is trustworthy, reliable, and of good reputation, evidence of which shall be

determined through an investigation by the commissioner;

(e) 1. Is competent to exercise the license and has:

a. Except for variable life and variable annuities line of authority and

limited lines of authority identified in KRS 304.9-230:

i. Completed a prelicensing course of study consisting of forty

(40) hours for life and health, forty (40) hours fo r property

and casualty, or twenty (20) hours for each line of authority,

as applicable, for which the individual has applied; and

ii. Successfully passed the examinations required by the

commissioner for the lines of authority for which the

individual has applied; and

b. Paid the fees set forth in KRS 304.4-010.

2. The commissioner shall promulgate administrative regulations in

accordance with KRS Chapter 13A to implement this paragraph; and

(f) Is financially responsible to exercise the license and has maintained in effect

while so licensed:

1. The certificate of an insurer, which states that the insurer has and will

keep in effect on be half of the person a policy of insurance covering the

legal liability of the licensed person as the result of erroneous acts or

failure to act in his or her capacity as an insurance agent, and enuring to

the benefit of any aggrieved party as the result of any single occurrence

in the sum of not less than twenty thousand dollars ($20,000) and one

hundred thousand dollars ($100,000) in the aggregate for all occurrences

within one (1) year;

2. A cash surety bond executed by an insurer, in the sum of twenty

thousand dollars ($20,000), which shall be subject to lawful levy of

execution by any party to whom the licensee has been found to be

legally liable as the result of erroneous acts or failure to act in his or her

capacity as an agent; or

3. An agreement by an insurer or group of affiliated insurers for which he

or she is or is to become an exclusive agent whereby the insurer or

group of affiliated insurers agrees to assume responsibility, to the

benefit of any aggrieved party, for legal liability of the licens ed person

as the result of erroneous acts or failure to act in his or her capacity as an

insurance agent on behalf of the insurer or group of affiliated insurers in

the sum of twenty thousand dollars ($20,000) for any single occurrence

and that the agreeme nt shall not be terminated until the insurer

appointment is terminated.

(2) The commissioner may:

(a) Require additional information or submissions from applicants; and

(b) Obtain any documents or information reasonably necessary to verify the

information contained in an application.