{"data":{"id":"us-ky/krs-304.15-260","jurisdiction":"us-ky","citation":"KRS 304.15-260","heading":"Limitation of liability.","body":"(1) No policy of life insurance shall be delivered or issued for delivery in this state if it\ncontains any of the following provisions:\n(a) A provision limiting the time within which an action at law or in equity may\nbe commenced on such a policy to less than three (3) years after the cause of\naction has accrued; or\n(b) A provision which excludes or restricts liability for death caused in a certain\nspecified manner or occurring while the insured has a specified status, except\nthat a policy may contain provision s excluding or restricting coverage as\nspecified therein in the event of death under any one (1) or more of the\nfollowing circumstances:\n1. Death as a result, directly or indirectly, of war, declared or undeclared,\nor of action by military forces, or of an y act or hazard of such war or\naction, or of service in the military, naval, or air forces or in civilian\nforces auxiliary thereto, or from any cause while a member of such\nmilitary, naval, or air forces of any country at war, declared or\nundeclared, or of any country engaged in such military action;\n2. Death as a result of aviation or any air travel or flight;\n3. Death as a result of specified hazardous occupation or occupations;\n4. Death while the insured is a resident outside the continental United\nStates and Canada; or\n5. Death within two (2) years from the date of issue of the policy as a result\nof suicide, while sane or insane.\n(2) A policy which contains any exclusion or restriction pursuant to paragraph (b) of\nsubsection (1) of this section, shall al so provide that in the event of death under the\ncircumstances to which any such exclusion or restriction is applicable, the insurer\nwill pay an amount not less than a reserve determined according to the\ncommissioners reserve valuation method upon the basis  of the mortality table and\ninterest rate specified in the policy for the calculation of nonforfeiture benefits (or if\nthe policy provides for no such benefits, computed according to a mortality table\nand interest rate determined by the insurer and specifi ed in the policy) with\nadjustment for indebtedness or dividend credit.\n(3) This section shall not apply to group life insurance, health insurance, reinsurance, or\nannuities, or to any provision in a life insurance policy or contract supplemental\nthereto relating to disability benefits or to additional benefits in the event of death\nby accident or accidental means.\n(4) Nothing contained in this section shall prohibit any provision which in the opinion\nof the commissioner is more favorable to the policyholder  than a provision\npermitted by this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17224","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:44Z","sha256":"32068b986a568b3131611203ac0d374943c278a26b83141f38161ec9babdf0a2","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.15-250","next":"us-ky/krs-304.15-270"},"notice":"GroundRules: Original legal text. Not legal advice."}