KRS 304.9-270: Appointment of agents -- Criminal background check -- Continuation --

Permitted and prohibited actions by agents and insurers.

(1) (a) Each insurer appointing an agent in this state shall obtain approval of the

appointment from the commissioner by:

1. Filing with the commissioner the notice of appointment, specifying the

lines of authority to be transacted by the agent for the insurer; and

2. Submitting the appointment fee, as specified in KRS 304.4-010.

(b) Each insurer shall notify the co mmissioner of additional lines of authority for

which an agent is deemed authorized to transact business, after the initial

appointment, in a format prescribed by the commissioner.

(2) Prior to appointment of an agent, the insurer shall satisfy itself thro ugh

investigation that the named applicant has not been convicted of any felony offense

involving dishonesty or a breach of trust and has not been convicted of a fraudulent

insurance act under Subtitle 47 of this chapter, unless the named applicant has

received written consent from the commissioner that specifically refers to KRS

304.47-025(3).

(3) No agent shall claim to be an agent or representative of, or in any way imply a

contractual relationship with, a particular insurer, or place applications for

insurance with an insurer unless:

(a) The agent becomes an appointed agent of the insurer; and

(b) The agent's appointment has been approved by the commissioner.

(4) (a) An agent may act as a representative of and place insurance with an insurer

without first obtaining approval of the appointment by the commissioner for a

period of fifteen (15) days from the date the first insurance application is

executed by the agent.

(b) If the agent does not obtain confirmation that the agent's appointment has

been approved by the commissioner within fifteen (15) days from the date the

first insurance application is executed, the agent shall immediately

discontinue acting as an agent on behalf of the insurer until confirmation is

received.

(5) (a) The insurer shall, no later than fifteen (15) days from the date the agent

contract is executed or the first insurance application is submitted by an agent,

whichever is earlier, file with the commissioner a notice of appointment on a

form or in a format prescribed by the commissioner.

(b) If there is no executed agent contract, the insurer shall also mail to the agent,

within the same fifteen (15) day period specified in paragraph (a) of this

subsection, a copy of the notice of appointment form filed with the

commissioner.

(6) (a) Within fifteen (15) days of receipt of the notice of appointment of an agent,

the commissioner shall determine and notify the insurer whether the agent is

eligible for appointment.

(b) If the agent's license is in good standing and no other grounds exist to deny

the appointment, the commissioner shall approve the appointment.

(7) Subject to renewal by the insurer as provided in subsection (8) of this section, each

appointment of an agent shall remain in effect until the earliest of the following:

(a) The commissioner revokes or otherwise terminates the agent's license;

(b) The commissioner suspends, revokes, or otherwise terminates the

appointment; or

(c) The insurer terminates the appointment as provided in KRS 304.9-280.

(8) (a) Biennially, before January 31, the department shall distribute to each insurer a

listing of the names and individual identification numbers of that insurer's

agents whose appointments were in ef fect during the preceding calendar year

and who were not terminated on or prior to December 31 of that calendar

year.

(b) Any appointment not expressly terminated shall remain in effect as to the

lines of authority thereof for which the respective agents a re currently

appointed, and subject to the fees specified under KRS 304.4-010.

(c) On or before March 31, each insurer shall submit the renewal of appointment

fee as specified in KRS 304.4 -010 for each appointment not terminated on or

prior to December 31 of the preceding calendar year.

(9) (a) Any appointment as to which the request for renewal and fees are not received

by the commissioner by March 31 shall be deemed to have expired at

midnight on March 31.

(b) Any appointment renewal request and fees received by the commissioner after

March 31 and prior to the next following June 30 may be accepted by the

commissioner, in his or her discretion, and the expired appointment may be

reinstated as of March 31 if the late request and fees are accompanied by a

penalty as provided in KRS 304.99-100.

(10) As used in this section, "agent" includes a managing general agent, a rental vehicle

agent, and a rental vehicle agent managing employee.