KRS 304.9-410: Exchange of business -- Excess or rejected risks -- Regulation of volume

of business by commissioner.

(1) An agent with a line of authority for property, casualty, or limited line surety

insurance may:

(a) Occasionally place an insurance coverage wi th an insurer as to which he or

she is not then appointed as an agent, and such insurer may accept such

business only when placed through an appointed agent of the insurer. Both

agents involved in this exchange of business must be then licensed as to all o f

the kinds of insurance represented by the coverage; and

(b) Without limitation, place insurance coverage with an insurer as to which he or

she is not then appointed as agent, and such insurer may accept such business

only if placed through a licensed managing general agent.

(2) An agent with a line of authority for life or health insurance may, occasionally,

place with another insurer as to which he or she is not appointed as agent, a

particular risk or portion thereof which has been rejected by the insurers as to which

the agent is appointed or is known to the agent to be unacceptable to such insurers,

and without then being appointed as to the other insurer.

(3) The commissioner shall, by regulation, establish the amount or volume of business

that constitutes the occasional placement of business permitted by subsections (1)

and (2) of this section. Such regulations may be based on a percentage or ratio of

the agent's business or any other appropriate standard.