KRS 304.9-240: Insurance vending machines.

(1) A licensed agent may solicit for and issue personal travel accident insurance

policies by means of mechanical vending machines supervised by the agent and

placed at airports and similar places of convenience to the traveling public, if the

commissioner finds that:

(a) The policy provides reasonable coverage and benefits, is suitable for sale and

issuance by vending machine, and that use of such a machine in a proposed

location would be of material convenience to the public;

(b) The type of machine proposed to be used is reasonably suitable for the

purpose;

(c) Reasonable means are provided for informing prospective purchasers of

policy coverages and restrictions;

(d) Reasonable means are provided for the refund of money inserted in defective

machines and for which insurance so paid for is not received; and

(e) The cost of maintaining such a machine at a particular location is reasonable

in amount.

(2) For each machine to be used, the commissioner shall issue to the agent upon his or

her application a special vending machine license. The license shall specify the

name and address of the insurer and agent, the name of the policy to be sold, the

serial number and operating location of the machine. The license shall be subject to

annual continuation, to expiration, suspension or revocation coincidentally with that

of the agent. The commissioner shall also revoke the license of any machine as to

which he or she finds that the license qualifications no longer exist. The license fee

shall be the same as specified in K RS 304.4-010, for an agent, for each license year

or part thereof for each respective machine. Proof of the existence of a subsisting

license shall be displayed on or about each machine in use, in such manner as the

commissioner reasonably requires.