KRS 304.9-330: Consultant to file proof of liability insurance -- Consultant's deposit of

cash or bond.

(1) To the extent the Gramm -Leach-Bliley Act, 15 U.S.C. sec. 6751(f), provides that

evidence of financial responsibility may be required for licensing, every licensed

consultant shall maintain in effect while so licensed:

(a) The certificate of an insurer authorized to write legal liability insurance in this

state, that the insurer has and will keep in effect on behalf of the consultant a

policy of insurance covering the legal liability of the consultant as the result of

erroneous acts or failure to act in his or her capacity as an insurance

consultant, and inuring to the benefit of any aggrieved party as the result of

any single occurrence in the sum of not les s than twenty thousand dollars

($20,000) and one hundred thousand dollars ($100,000) in the aggregate for

all occurrences within one (1) year; or

(b) A cash surety bond executed by an insurer authorized to write this business in

this Commonwealth, in the s um of twenty thousand dollars ($20,000) which

shall be subject to lawful levy of execution by any party to whom the

consultant has been found to be legally liable as the result of erroneous acts or

failure to act in his or her capacity as a consultant.

(2) The bond shall indemnify any person damaged by any fraudulent or unlawful act or

conduct of the licensee in transactions under the license, and shall likewise be

conditioned upon faithful accounting and application of all moneys coming into the

licensee's possession in connection with his or her activities as the licensee.

(3) The bond shall remain in force until canceled by the surety. Without prejudice to

any liability previously incurred thereunder, the surety may cancel the bond upon

thirty (30) days advance written notice to the licensee.