{"data":{"id":"us-ky/krs-304.10-140","jurisdiction":"us-ky","citation":"KRS 304.10-140","heading":"Broker's evidence of financial responsibility and bond.","body":"(1) To the extent the Gramm -Leach-Bliley Act, 15 U.S.C. sec. 6751(f), provides that\nevidence of financial responsibility may be required for licensing for as long as the\nlicense remains in effect, a licensed resident surplus lines broker shall keep in force:\n(a) Evidence of financial responsibility in the sum of not less than one million\ndollars ($1,000,000) per occurrence, and the sum of two million dollars\n($2,000,000) in the aggregate, for all occurrences within one (1) year, either in\nthe form of an errors and omissions insurance policy issued by an authorized\ninsurer, a bond issued by an authorized corporate surety, a deposit, or a\ncombination of a bond issued by an authorized corporate surety and a deposit;\nand\n(b) A bond in favor of the State of Kentucky in the penal sum of fifty thousand\ndollars ($50,000), with an authorized corporate surety guaranteeing that he or\nshe will conduct business under the license in accordance with the provisions\nof this subtitle and that he or she will promptly remit the taxe s required by\nKRS 304.10-180. The aggregate liability of the surety for any and all claims\non any bond shall in no event exceed the penal sum.\n(2) An insurer issuing coverage under subsection (1)(a) or (b) of this section may offer,\nas a part of the policy  or as an optional endorsement to the policy, deductibles\noptional to the surplus lines broker applicant or licensee for the payment of claims.\nDeductible amounts offered in accordance with this section shall be fully disclosed\nto the applicant or licensee  in writing. If the applicant or licensee chooses a\ndeductible policy, the insurer shall pay the deductible amount initially and the\nlicensee shall be liable to the insurer, at the time and in the manner prescribed in the\npolicy, for the amount of the deductible. If the licensee fails to reimburse the insurer\nas required by this subsection, his or her surplus lines broker license and all other\nlicenses issued by the commissioner are revoked and shall be promptly surrendered\nto the commissioner without deman d. Nothing contained in this subsection is\nintended to or shall in any manner alter or affect the rights of the insurer to collect\nthe reimbursement for the deductible from the surplus lines broker.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40300","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:41Z","sha256":"b4aba5ca0c7725ab3e420660e1016ad7ac32a04772a10278a6719d42ade7192b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.10-130","next":"us-ky/krs-304.10-150"},"notice":"GroundRules: Original legal text. Not legal advice."}