KRS 304.9-700: Definitions for KRS 304.9-700 to 304.9-759.

As used in KRS 304.9-700 to 304.9-759, unless the context requires otherwise:

(1) "Actuary" means a person who is a member in good standing of the American

Academy of Actuaries;

(2) "Controlling person" means any person, firm, association, or corporation w ho

directly or indirectly has the power to direct or cause to be directed the

management, control, or activities of the reinsurance intermediary;

(3) "Insurer" means any person, firm, association, or corporation duly authorized by the

commissioner pursuant to the applicable provisions of this chapter as an insurer;

(4) "Licensed producer" means an agent, surplus lines broker, or reinsurance

intermediary licensed pursuant to the applicable provisions of this chapter;

(5) "Reinsurance intermediary" means a re insurance intermediary broker or a

reinsurance intermediary manager as defined in subsections (6) and (7) of this

section;

(6) "Reinsurance intermediary broker" means any person, other than an officer or

employee of the ceding insurer, firm, association, o r corporation who solicits,

negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding

insurer without the authority or power to bind reinsurance on behalf of the insurer;

(7) "Reinsurance intermediary manager" means any person, firm , association, or

corporation who has authority to bind or manages all or part of the assumed

reinsurance business of a reinsurer (including the management of a separate

division, department, or underwriting office) and acts as an agent for a reinsurer

whether known as a reinsurance intermediary manager, manager, or by other similar

term. However, the following persons shall not be considered a reinsurance

intermediary manager with respect to the reinsurer for the purposes of KRS 304.9 -

700 to 304.9-759:

(a) An employee of the reinsurer;

(b) A United States manager of the United States branch of an alien reinsurer;

(c) An underwriting manager which, pursuant to contract, manages all the

reinsurance operations of the reinsurer, is under common control with the

reinsurer, subject to Subtitle 37 of this chapter, and whose compensation is

not based on the volume of premiums written; or

(d) The manager of a group, association, pool, or organization of insurers which

engage in joint underwriting or joint reinsurance and who are subject to

examination by the insurance regulatory official of the state in which the

manager's principal business office is located;

(8) "Reinsurer" means any person, firm, association, or corporation duly authorized in

Kentucky pursuant to t his chapter as an insurer with the authority to assume

reinsurance;

(9) "To be in vi olation" means that the reinsurance intermediary, insurer, or reinsurer

for whom the reinsurance intermediary was acting failed to comply substantially

with the provisions of KRS 304.9-700 to 304.9-759; and

(10) "Qualified United States financial institution" means an institution that:

(a) Is organized or, in the case of a United States office of a foreign banking

organization, licensed under the laws of the United States or any state thereof;

(b) Is regulated, supervised, and examined by the United States government or

state authorities having regulatory authority over banks and trust companies;

and

(c) Has been determined by either the commissioner, or the Securities Valuation

Office of the National Association of Insurance Commissioners, to meet the

standards of financial condition and standing considered necessary and

appropriate to regulate the quality of financial institutions whose letters of

credit will be acceptable to the commissioner.