KRS 304.9-133: Individuals designated to act under business entity license -- Filing of

designation notice -- Exercise of license -- Responsibility of insurer for acts of

designated individuals.

(1) As used in this section, "licensed business entity" means a business entity issued a:

(a) License under this subtitle; or

(b) Life settlement broker, life settlement provider, or surplus lines broker

license.

(2) (a) Except as provided in this subsection:

1. A licensed business entity shall designate individual s to act under the

business entity license; and

2. Each individual designated to act under the license of a business entity

referenced in subparagraph 1. of this paragraph shall hold the same kind

of license as the business entity.

(b) A portable electronics retailer issued a license shall designate a business entity

to act under the license.

(c) A managing general agent issued a license shall designate individuals licensed

as agents with property and casualty lines of authority to act under the license.

(d) A pharmacy benefit manager issued a license shall designate individuals

licensed as administrators to act under the license.

(3) (a) The first individual designated by a licensed business entity to act under the

business entity license shall have one (1) or more of the same lines of

authority as the business entity.

(b) An individual designated to act under the business entity license who is in

addition to the first designee referenced in paragraph (a) of this subsection

shall have at least one (1) appointment with an insurer.

(4) A licensed business entity shall file with the commissioner:

(a) Notice of the designation of an individual within thirty (30) days of the

designation; and

(b) Notice of termination of designation of an individual within thirty (30) days of

the termination of designation.

(5) (a) Except as provided in subsection (2)(b) o f this section, a licensed business

entity shall exercise its license only through one (1) or more designated

individual licensees.

(b) 1. The business entity shall have for each of its licenses and active lines of

authority at least one (1) licensed indiv idual designated with the

commissioner at all times.

2. If the business entity fails to have at least one (1) licensed individual

designated with the commissioner for a line of authority, that line of

authority shall become inactive.

3. If the business ent ity fails to have at least one (1) licensed individual

designated with the commissioner, the business entity license shall

terminate.

(6) An insurer that has appointed the business entity licensee shall be responsible for

the acts of each designated indivi dual performed under the business entity's license

as if the insurer had appointed the individual licensee.