{"data":{"id":"us-ky/krs-304.11-020","jurisdiction":"us-ky","citation":"KRS 304.11-020","heading":"Unauthorized Insurer's Law -- Exemptions.","body":"(1) Other than KRS 304.11 -050, the provisions of KRS 304.11 -020 to 304.11 -050,\nshall not apply to any insurance company or underwriter issuing contracts of\ninsurance to industrial insureds, government entity insureds, and exempt\ncommercial policyholders, nor to any contract of insurance issued to any one (1) or\nmore industrial insureds.\n(2) For the purpose of this section:\n(a) An \"industrial insured\" is:\n1. An insured who procures the insurance of any risk or risks other than life\nand annuity contracts by use o f the services of a full -time employee\nacting as an insurance manager or buyer or the services of a regularly\nand continuously retained qualified insurance consultant; and\n2. An insured whose aggregate annual premiums for insurance on all risks\ntotal at least twenty-five thousand dollars ($25,000); and\n3. An insured having at least twenty-five (25) full-time employees; and\n4. All entities that have qualified as industrial insureds as of July 1, 1999;\n(b) A \"government entity insured\" is an insured:\n1. That is a government entity, municipal corporation, or public agency\nlocated in a city or county having a population of less than fifty thousand\n(50,000); and\n2. That procures the insurance of any risk or risks, other than life and\nannuity contracts, by use of the services of a full -time employee acting\nas an insurance manager or buyer, or by the use of the services of a\nregularly and continuously retained qualified insurance consultant; and\n3. Whose aggregate annual premiums for insurance on all risks total at\nleast one hundred thousand dollars ($100,000), exclusive of life, health,\nmedical, or annuity premiums; and\n4. That has at least fifty (50) full-time employees; and\n5. That satisfies the criteria the co mmissioner promulgates by\nadministrative regulation; and\n(c) 1. An \"exempt commercial policyholder\" means an insured that employs\nthe services of an insurance agent or broker, procures commercial\ninsurance with the services of a full -time risk manager, or a licensed\ninsurance consultant, pursuant to Subtitle 9 of this chapter and:\na. Is a city, county, or urban-county with a population of at least fifty\nthousand (50,000) persons, or the Commonwealth, or a not -for-\nprofit organization or a public entity with an annual budget of at\nleast twenty-five million dollars ($25,000,000) or assets of at least\ntwenty-five million dollars ($25,000,000) in the preceding fiscal\nyear; or\nb. Certifies that it meets all four (4) of the following criteria:\ni. Possesses a net w orth of more than twenty -five million\ndollars ($25,000,000) at the time the policy of insurance is issued;\nii. Generated net revenue or sales of more than fifty million\ndollars ($50,000,000) in the preceding fiscal year;\niii. Employs more than one hundre d (100) employees per\nindividual company or two hundred (200) employees per holding\ncompany aggregate at the time the policy of insurance is issued;\nand\niv. Paid annual aggregate insurance premiums of more than five\nhundred thousand dollars ($500,000) in the preceding fiscal year.\n2. As used in this subsection, \"risk manager\" means a person qualified to\nassess an exempt commercial policyholder's insurance needs and\nanalyze and negotiate a policy of insurance on behalf of an exempt\ncommercial policyholder. A risk manager shall be:\na. A full-time employee of an exempt commercial policyholder who\nholds a professional designation relevant to the type of insurance\nto be purchased by the exempt commercial policyholder; or\nb. A person retained by an exempt commerc ial policyholder who\nholds a professional designation relevant to the type of insurance\nto be purchased by the exempt commercial policyholder.\n(3) (a) Policies issued to industrial insureds, government entity insureds, and exempt\ncommercial policyholders a re exempt from the rate and policy form\nrequirements of this chapter.\n(b) Policies issued to industrial insureds, government entity insureds, and exempt\ncommercial policyholders shall contain a disclaimer in language similar to the\nfollowing: \"The rate pro vided for in this policy is exempt from the filing and\napproval requirements of Subtitle 13 of KRS Chapter 304. The forms which\nmake up this policy contract are exempt from the filing and approval\nrequirements of Subtitle 14 of KRS Chapter 304.\"\n(c) The exemption of commercial policyholders under this section shall not apply\nto Subtitle 39 of this chapter, KRS Chapter 342, sections in Subtitle 13 of this\nchapter that pertain to workers' compensation insurance, and KRS 304.12 -\n230.\n(4) All industrial insureds , government entity insureds, and exempt commercial\npolicyholders shall reapply to the commissioner for their respective insured status\nevery three (3) years, on a form the commissioner shall promulgate by\nadministrative regulation.\n(5) KRS 304.11 -020 to 3 04.11-050, inclusive, shall not apply to any life insurance\ncompany organized and operated, without profit to any private shareholder or\nindividual, exclusively for the purpose of aiding educational or scientific\ninstitutions organized and operated without  profit to any private shareholder or\nindividual by issuing insurance and annuity contracts directly from the home office\nof the company and without agents or representatives in this state only to or for the\nbenefit of such institutions and to individuals engaged in the services of such\ninstitutions, nor to any policy or contract which it issues; but this exemption shall be\nconditioned upon any such company complying with the following requirements:\n(a) Payment of an annual registration fee;\n(b) Filing a co py of any policy or contract issued to Kentucky residents with the\ncommissioner;\n(c) Filing a copy of its annual statement prepared pursuant to the laws of its state\nof domicile, as well as such other financial material as may be requested, with\nthe commissioner; and\n(d) Providing, in such form as may be acceptable for the appointment of the\nSecretary of State as its true and lawful attorney upon whom may be served all\nlawful process in any action or proceeding against such company arising out\nof any policy  or contract it has issued to, or which is currently held by, a\nKentucky citizen and process so served against such company shall have the\nsame force and validity as if served upon the company.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17003","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:41Z","sha256":"41e6d987bf77ae6f542726f1cb5a77bf0c10c77dac9c428fc4a47ca6c78afb70","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.11-010","next":"us-ky/krs-304.11-030"},"notice":"GroundRules: Original legal text. Not legal advice."}