KRS 304.9-280: Termination of licensee's appointment -- Notice requirements -- Civil

immunity -- Confidential and privileged information -- Commissioner's use of

information.

(1) Subject to the agent contract rights of a rental vehicle agent, rental vehicle

managing employee, managing general agent, or agent, if any, an insurer may

terminate an appointment at any time. However, if any appointment is not

terminated on or prior to December 31, then on January 1 the fees designated shall

be due for submission as provided in KRS 304.9-270.

(2) An insurer or authorized representative of the insurer that terminates the

appointment, employment, contract, or other insurance business relationship with a

licensee shall notify the commissioner within thirty (30) days following the

effective date of the termination, using a form or a format prescribed by the

commissioner, if the reason for termination is one (1) of the reasons set forth in

KRS 304.9-440 or if the insurer has knowledge the licensee was found by a court,

government body, or self-regulatory organization authorized by law to have engaged

in any of the activities in KRS 304.9 -440. Termination under this subsection shall

be deemed termination for cause. Upon the written request of the commissioner the

insurer shall pro vide additional information, documents, records, or other data

pertaining to the termination or activity of the licensee.

(3) An insurer or authorized representative of the insurer that terminates the

appointment of a licensee for any reason not set forth in subsection (2) of this

section, shall notify the commissioner within thirty (30) days following the effective

date of the termination, using a form or a format prescribed by the commissioner.

Termination under this subsection shall be deemed termination without cause. Upon

written request of the commissioner, the insurer shall provide additional

information, documents, records, or other data pertaining to the termination.

(4) The insurer or the authorized representative of the insurer shall promptly noti fy the

commissioner in a form or a format acceptable to the commissioner if, upon further

review or investigation, the insurer discovers additional information that would

have been reportable to the commissioner in accordance with subsection (2) of this

section had the insurer known of its existence.

(5) (a) Within fifteen (15) days after making the notification required for termination

without cause, the insurer shall mail a notice of the termination to the licensee

at his or her last known address by firs t-class mail. The notice of termination

shall include and indicate the reasons for termination provided to the

commissioner.

(b) Within fifteen (15) days after making the notification required for termination

for cause, the insurer shall provide a copy of the form to the licensee at his or

her last known address by certified mail, return receipt requested, postage

prepaid, or by overnight delivery using a nationally recognized carrier.

(c) Within thirty (30) days after the licensee has received a copy of th e form, the

licensee may file written comments concerning the substance of the

notification with the commissioner. The licensee shall, by the same means,

simultaneously send a copy of the comments to the reporting insurer, and the

comments shall become a p art of the commissioner's file and accompany

every copy of a report distributed or disclosed for any reason about the

licensee as permitted under subsection (7)(c) of this section.

(6) (a) 1. In the absence of actual malice, an insurer, the authorized repr esentative

of the insurer, a licensee, the commissioner, or their respective

representatives or employees, or an organization of which the

commissioner is a member and that compiles the information and makes

it available to other insurance commissioners or regulatory or law

enforcement agencies, shall not be subject to civil liability, and a civil

cause of action of any nature shall not arise against these individuals,

entities, or their respective representatives or employees as a result of:

a. Any stateme nt or information required by or provided in

accordance with this section;

b. Any information relating to any statement that may be requested in

writing from an insurer or licensee by the commissioner; or

c. A statement by a terminating insurer or licensee to an insurer or

licensee that is limited solely and exclusively to whether a

termination for cause under subsection (2) of this section was

reported to the commissioner.

2. The propriety of any termination for cause under subsection (2) of this

section shall be certified in writing by an officer or authorized

representative of the insurer or licensee terminating the relationship.

(b) In any action brought against an individual, business entity, or organizati on

that may have immunity under paragraph (a) of this subsection for making any

statement required by this section or providing any information relating to any

statement that may be requested by the commissioner, the party bringing the

action shall plead s pecifically in any allegation that paragraph (a) of this

subsection does not apply because the individual, business entity, or

organization making the statement, or providing the information did so with

actual malice.

(c) Paragraph (a) or (b) of this subse ction shall not abrogate or modify any

existing statutory or common law privileges or immunities.

(7) (a) 1. Any document, material, or other information in the control or

possession of the department that is furnished by an insurer, licensee, or

an employee or representative acting on behalf of the insurer or licensee,

or obtained by the commissioner in an investigation in accordance with

this section:

a. Shall be confidential by law and privileged;

b. Shall not be subject to subpoena; or

c. Shall not be s ubject to discovery or admissible in evidence in any

private civil action.

Notwithstanding subdivisions a., b., and c. of this subparagraph, any

document, material, or other information that is furnished by an insurer,

licensee, or an employee or representative acting on behalf of the insurer

or licensee, or obtained by the commissioner in an investigation in

accordance with this section, that is used in a formal administrative

proceeding or enforcement action in accordance with KRS Chapter 13B

shall be subject to the Kentucky Open Records Act.

2. However, the commissioner is authorized to use the documents,

materials, or other information referred to in paragraph (a)1. of this

subsection in the furtherance of any regulatory or legal action brought to

carry out the commissioner's duties.

(b) Neither the commissioner nor any individual who received documents,

materials, or other information while acting under the authority of the

commissioner, shall be permitted or required to testify in any private civil

action concerning any confidential documents, materials, or information

subject to paragraph (a) of this subsection.

(c) In order to assist in the performance of the commissioner's duties, as set forth

in KRS 304.2-100, the commissioner:

1. May share document s, materials, or other information, including the

confidential and privileged documents, materials, or information subject

to paragraph (a) of this subsection, with other state, federal, and

international regulatory agencies, with the National Association of

Insurance Commissioners, its affiliates, or subsidiaries, and with state,

federal, and international law enforcement authorities, provided that the

recipient agrees to maintain the confidentiality and privileged status of

the documents, materials, or other information;

2. May receive documents, materials, or information, including otherwise

confidential and privileged documents, materials, or information, from

the National Association of Insurance Commissioners, its affiliates or

subsidiaries, and from r egulatory and law enforcement officials of other

foreign or domestic jurisdictions, and shall maintain as confidential or

privileged any documents, materials, or information received with notice

or the understanding that it is confidential or privileged un der the laws

of the jurisdiction that is the source of the documents, materials, or

information; and

3. May enter into agreements governing sharing and use of information

consistent with this subsection.

(d) No waiver of any applicable privilege or claim o f confidentiality in the

documents, materials, or information shall occur as a result of disclosure to

the commissioner or of sharing as authorized in this subsection.

(e) The commissioner shall release only final, adjudicated actions, including for -

cause terminations that are open to public inspection in accordance with the

Kentucky Open Records Act, KRS 61.870 to 61.884.

(f) As part of the nonresident license certification process, the department shall

release only final adjudicated actions on licensees i dentified in subsection (1)

of this section.