{"data":{"id":"us-ky/krs-304.11-030","jurisdiction":"us-ky","citation":"KRS 304.11-030","heading":"Prohibition of unauthorized insurance business -- Applicability of law -","body":"- Liability of person acting as agent -- Commissioner's power to enjoin.\n(1) It shall be unlawful for any company to enter into a contract of insurance as an\ninsurer or to transact insurance business in this state, as set forth in subsection (2) of\nthis section without a certificate of authority from the commissioner; provided, that\nthis subsection shall not apply to:\n(a) The lawful transaction of surplus lines insurance;\n(b) The lawful transaction of reinsurance by insurers;\n(c) Transactions in this state involving a policy lawfully solicited, written, and\ndelivered outside of this state covering only subjects of insurance not resident,\nlocated, or expressly to be performed in t his state at the time of issuance, and\nwhich transactions are subsequent to the issuance of such policy;\n(d) Transactions involving contracts of insurance independently procured through\nnegotiations occurring entirely outside of this state which are report ed and on\nwhich premium tax is paid;\n(e) Attorneys acting in the ordinary relation of attorney and client in the\nadjustment of claims or losses;\n(f) Transactions in this state involving group life and group health or blanket\nhealth insurance or group annui ties where the master policy of such groups\nwas lawfully issued and delivered in a state in which the company was\nauthorized to do an insurance business;\n(g) Transactions in this state involving any policy of insurance issued prior to July\n1, 1968; and\n(h) Insurance on vessels, craft or hulls, cargoes, marine builder's risk, marine\nprotection and indemnity or other risk, including strikes and war risks\ncommonly insured under ocean or wet marine forms of policy.\n(2) Any of the following acts in this state ef fected by mail or otherwise is defined to be\ndoing an insurance business in this state. The venue of an act committed by mail is\nat the point where the matter transmitted by mail is delivered and takes effect.\nUnless otherwise indicated, the term \"insurer\"  as used in this section includes all\ncorporations, associations, partnerships, and individuals, engaged as principals in\nthe business of insurance and also includes interinsurance exchanges and mutual\nbenefit societies:\n(a) The making of or proposing to make, as an insurer, an insurance contract;\n(b) The making of or proposing to make, as guarantor or surety, any contract of\nguaranty or suretyship as a vocation and not merely incidental to any other\nlegitimate business or activity of the guarantor or surety;\n(c) The taking or receiving of any application for insurance;\n(d) The receiving or collection of any premiums, commissions, membership fees,\nassessments, dues or other consideration for any insurance or any part thereof;\n(e) The issuance or delivery of contracts of insurance to residents of this state or\nto persons authorized to do business in this state;\n(f) Directly or indirectly acting as an agent for, or otherwise representing or\naiding on behalf of another, any person or insurer in the solicitation,\nnegotiation, procurement or effectuation of insurance or renewals thereof or in\nthe dissemination of information as to coverage or rates, or forwarding of\napplications, or delivery of policies or contracts, or inspection of ris ks, or\nfixing of rates or investigation or adjustment of claims or losses, or in the\ntransaction of matters subsequent to effectuation of the contract and arising\nout of it, or in any other manner representing or assisting a person or insurer in\nthe transa ction of insurance with respect to subjects of insurance resident,\nlocated or to be performed in this state. The provisions of this subsection shall\nnot operate to prohibit full -time salaried employees of a corporate insured\nfrom acting in the capacity of an insurance manager or buyer in placing\ninsurance in behalf of such employer;\n(g) The doing of any kind of insurance business specifically recognized as\nconstituting the doing of an insurance business within the meaning of the\nstatutes relating to insurance;\n(h) The doing or proposing to do any insurance business in substance equivalent\nto any of the foregoing in a manner designed to evade the provisions of this\ncode; and\n(i) Any other transactions of business in this state by an insurer.\n(3) (a) The failure of a company transacting insurance business in Kentucky to obtain\na certificate of authority shall not impair the validity of any act or contract of\nsuch company and shall not prevent such company from defending any action\nat law or suit in equity in any court of this state.\n(b) In event of failure of any such unauthorized insurer to pay any claim or loss\nwithin the provisions of such insurance contract, any person who assisted or in\nany manner aided directly or indirectly in the procurement of such insu rance\ncontract shall be liable to the insured for the full amount of the claim or loss in\nthe manner provided by the provisions of such insurance contract.\n(4) Whenever the commissioner believes, from evidence satisfactory to him or her, that\nany company i s violating or about to violate the provisions of these sections, the\ncommissioner may, through the Attorney General of this state, cause a complaint to\nbe filed in the Circuit Court of Franklin County to enjoin and restrain such company\nfrom continuing su ch violation or engaging therein or doing any act in furtherance\nthereof. The court shall have jurisdiction of the proceeding and shall have the power\nto make and enter an order or judgment awarding such preliminary or final\ninjunctive relief as in its judgment is proper.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17004","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:41Z","sha256":"3566b451f7e9427c97dd330266941e4fe041a735540953437a07368580e4ca6d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.11-020","next":"us-ky/krs-304.11-040"},"notice":"GroundRules: Original legal text. Not legal advice."}