{"data":{"id":"us-ky/krs-304.11-040","jurisdiction":"us-ky","citation":"KRS 304.11-040","heading":"Service of process on unauthorized persons doing acts of insurance","body":"business in Kentucky -- Requirements for defense of action -- Reports to\ncommissioner required.\n(1) No person or insurer shall directly or indirectly perform any of the acts of doin g an\ninsurance business as defined in KRS 304.11 -020 to 304.11 -050, inclusive, except\nas provided by and in accordance with the specific authorization by statute.\nHowever, should any unauthorized person or insurer perform any act of doing an\ninsurance business as set forth in KRS 304.11 -020 to 304.11-050, inclusive, it shall\nbe equivalent to and shall constitute an irrevocable appointment by such person or\ninsurer, binding upon the person or insurer, his or her executor or administrator, or\nsuccessor in interest if a corporation, of the Secretary of State or his or her successor\nin office to be the true and lawful attorney upon whom may be served all lawful\nprocess in any action, suit, administrative hearing or proceeding in any court arising\nout of doing an  insurance business in this state or instituted by or on behalf of an\ninsured or beneficiary arising out of any such acts of doing an insurance business.\nAny act of doing an insurance business by any unauthorized person or insurer shall\nbe signification of  its agreement that such service of process is of the same legal\nforce and validity as personal service of process in this state upon such person or\ninsurer.\n(2) Service of process in any action may be made by service upon the Secretary of State\nas provided in KRS 304.3-230.\n(3) Service of process in any such action, suit, or proceeding shall in addition to the\nmanner as provided in KRS 304.11 -020 to 304.11-050, inclusive, be valid if served\nupon any person within this state who, in this state on behalf of such insurer, is\nsoliciting insurance, making, issuing, or delivering any contract of insurance, or\ncollecting or receiving any premium, membership fee, assessment, or other\nconsideration for insurance, and if:\n(a) A copy of such process is sent within ten (10) days thereafter by certified mail\nby the plaintiff or plaintiff's attorney to the defendant at the last known\nprincipal place of business of the defendant; and\n(b) The defendant's receipt, or the receipt issued by the post office showing the\nname of the sender of the letter and the name and address of the person to\nwhom the letter is addressed, and an affidavit of the plaintiff or plaintiff's\nattorney showing a compliance herewith are filed with the clerk of the court in\nwhich such action is pending on or before the date the defendant is required to\nappear or within such further time as the court may allow.\n(4) No plaintiff shall be entitled to a judgment by default under KRS 304.11 -020 to\n304.11-050, inclusive, until the expiration of thirty (30) days  from the date of the\nfiling of the affidavit of compliance.\n(5) Nothing in subsections (1) to (5), inclusive, of this section shall limit or abridge the\nright to serve any process, notice, or demand upon any insurer in any other manner\nnow or hereafter permitted by law.\n(6) The Attorney General upon request of the commissioner may proceed in the courts\nof this state or any other state or in any federal court or agency to enforce an order\nor decision in any court proceeding or in any administrative proceedi ng before the\ncommissioner.\n(7) Before any unauthorized person or insurer files or causes to be filed in any pleading\nin any court action, suit or proceeding or in any notice, order, pleading, or process in\nsuch administrative proceeding before the commiss ioner instituted against such\nperson or insurer, by services made as provided in subsections (1) to (5), inclusive,\nof this section such person or insurer shall either:\n(a) Deposit with the clerk of the court in which such action, suit, or proceeding is\npending, or with the commissioner in administrative proceedings before the\ncommissioner, cash or securities, or file with such clerk or commissioner a\nbond with good and sufficient sureties, to be approved by the clerk or\ncommissioner in an amount to be fixe d by the court or commissioner\nsufficient to secure the payment of any final judgment which may be rendered\nin such action or administrative proceeding.\n(b) Procure a certificate of authority to transact the business of insurance in this\nstate.\n(8) The court in any action, suit, or proceeding in which service is made as provided in\nsubsections (1) to (5), inclusive, of this section may in its discretion, order such\npostponement as may be necessary to afford the defendant reasonable opportunity to\ncomply wit h the provisions of subsection (7) of this section and to defend such\naction.\n(9) Nothing in subsection (7) of this section shall be construed to prevent an\nunauthorized person or foreign or alien insurer from filing a motion to quash a writ\nor to set aside service thereof made in the manner provided in subsections (1) to (5),\ninclusive, of this section on the ground that such unauthorized person or insurer has\nnot done any of the acts enumerated in subsections (1) to (3), inclusive, of KRS\n304.11-030.\n(10) In an action against an unauthorized person or insurer upon a contract of insurance\nissued or delivered in this state to a resident thereof or to a corporation authorized to\ndo business therein, if the person or insurer has failed for thirty (30) days aft er\ndemand prior to the commencement of the action to make payment in accordance\nwith the terms of the contract, and it appears to the court that such refusal was\nwithout reasonable cause, the court may allow to the plaintiff a reasonable attorney\nfee and i nclude such fee in any judgment that may be rendered in such action.\nFailure of the person or insurer to defend any such action shall be deemed prima\nfacie evidence that its failure to make payment was without reasonable cause.\n(11) Whenever the commissioner has reason to believe that insurance has been\neffectuated by or for any person in this state with an unauthorized insurer the\ncommissioner shall in writing order such person to produce for examination all\ninsurance contracts and other documents evidencing insurance with both authorized\nand unauthorized insurers and to disclose to the commissioner the amount of\ninsurance, name and address of each insurer, gross amount of premium paid or to be\npaid and the name and address of the per son or persons assisting or aiding in the\nsolicitation, negotiation, or effectuation of such insurance.\n(12) Every person investigating or adjusting any loss or claim on a subject of insurance\nin this state shall immediately report to the commissioner ever y insurance policy or\ncontract which has been entered into by an insurer not authorized to transact such\ninsurance in this state.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17005","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:41Z","sha256":"28ad6636fe2ad111c7362a60727af779bee5ed3adbda9cc08cc1dda98c00f196","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.11-030","next":"us-ky/krs-304.11-042"},"notice":"GroundRules: Original legal text. Not legal advice."}