{"data":{"id":"us-ky/krs-286.4-560","jurisdiction":"us-ky","citation":"KRS 286.4-560","heading":"Insurance.","body":"(1) A licensee may request a borrower to insure tangible personal property, except\nhousehold goods, offered as security for a loan exceeding three hundred dollars\n($300) under this subtitle against any substantial risk of loss, damage, or destruction\nfor an am ount not to exceed the actual value of such property or the approximate\namount of the loan, whichever is greater, and for a term and upon conditions which\nare reasonable and appropriate considering the nature of the property and the\nmaturity and other circ umstances of the loan; provided such insurance is sold by a\nlicensed agent, broker, or solicitor. The licensee may also request and secure credit\nproperty insurance on the tangible personal property, except that no part of the cost\nthereof shall be charged  to the borrower unless the insurer agrees that it will not\nexercise its right to subrogation against the borrower under the licensee's policy.\n(2) A licensee may also request, provide, obtain, or take as security for any loan\nobligation insurance on the l ife, unemployment, health, or disability, or all, of the\nborrower, or two (2) of them if there are two (2) or more. Life insurance shall be in\nthe approximate amount of the indebtedness scheduled to be due the licensee under\nthe loan contract. Not more tha n one (1) policy of life insurance may be written in\nconnection with any loan transaction under this subtitle. The aggregate amount of\nperiodic benefits payable by any unemployment, health, or disability insurance\nprovided, obtained, or requested by the li censee in the event of unemployment or\ndisability, as defined in the policy, shall not exceed the aggregate of the scheduled\ninstallments and the waiting period provided in such policy must be fourteen (14)\ndays or longer. The premium rate for insurance pr ovided under this section shall be\nreasonable in relation to the benefits provided and shall be filed with the\ncommissioner of insurance. The commissioner of insurance shall, within thirty (30)\ndays after the filing of any premium rate, disapprove such pre mium rate if it is\nexcessive in relation to the benefits. In determining whether to approve or\ndisapprove any premium rate, the commissioner of insurance shall give due\nconsideration to the unemployment, mortality, and morbidity costs with respect to\nsuch insurance on borrowers under this subtitle or similar acts in other states, a\nreasonable margin for underwriting expenses and profit and contingencies to the\ninsurer, and cost and compensation to the licensees for providing and servicing such\ninsurance, plus the premium taxes payable on such insurance.\n(3) In accepting any insurance provided for by this section as security for a loan the\nlicensee, its officers, agents, or employees may deduct the premiums or identifiable\ncharge therefor from the proceeds of the loan, which premium or identifiable charge\nshall not exceed the rate filed with the commissioner of insurance and not\ndisapproved and remit such premiums to the insurance company writing such\ninsurance and any gain or advantage to the licensee or any employee, officer,\ndirector, agent, affiliate, or associate from such insurance or its sale shall not be\nconsidered as additional or further charge in connection with any loan made under\nthis subtitle. The arranging for and collecting of an identifiable ch arge shall not be\ndeemed the sale of insurance.\n(4) Every insurance policy or certificate written in connection with a loan transaction\npursuant to subsection (2) of this section shall provide for cancellation of coverage\nand a refund of the premium or ide ntifiable charge unearned upon the discharge of\nthe loan obligation for which such insurance is security without prejudice to any\nclaim. Such refund shall be under a formula filed by the insurer with the\ncommissioner of insurance.\n(5) Whenever insurance is written in connection with a loan transaction pursuant to this\nsection, the licensee shall deliver or cause to be delivered to the borrower a policy,\ncertificate, memorandum, or other disclosure which shall show the coverages and\nthe cost thereof, if any,  to the borrower within thirty (30) days from the date of the\nloan.\n(6) All such insurance shall be written by a company authorized to conduct such\nbusiness in this state and the licensee shall not require the purchase of such\ninsurance from any agent or broker designated by the licensee nor shall the licensee\ndecline existing coverages which equal or exceed the standards of this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43249","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:11Z","sha256":"65de08da84668be743e39663eaaaf299df1920af4bab4c8eb5681e587f338067","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.4-550","next":"us-ky/krs-286.4-570"},"notice":"GroundRules: Original legal text. Not legal advice."}