{"data":{"id":"us-ky/krs-304.15-716","jurisdiction":"us-ky","citation":"KRS 304.15-716","heading":"Violation due to time of contract -- Conditions -- Procedure --","body":"Satisfaction of requirements.\n(1) It is a violation of this subtitle for a person to enter into a life settlement contract at\nany time prior to, or at the time of application for, issu ance of a policy, or within a\ntwo (2) year period commencing with the date of issuance of the policy unless the\nowner certifies to the life settlement provider that one (1) or more of the following\nconditions has been met within the two (2) year period:\n(a) The policy was issued upon the owner's exercise of conversion rights arising\nout of a group or individual policy, if the total of the time covered under the\nconversion policy plus the time covered under the prior policy is at least\ntwenty-four (24) month s. The time covered under a group policy shall be\ncalculated without regard to a change in insurance carriers, if the coverage has\nbeen continuous and under the same group sponsorship; or\n(b) The owner submits independent evidence to the life settlement pr ovider that\none (1) or more of the following conditions has been met within the two (2)\nyear period:\n1. The owner or insured is terminally or chronically ill;\n2. The owner or insured disposes of his ownership interests in a closely\nheld corporation, pursua nt to the terms of a buyout or other similar\nagreement in effect at the time the insurance policy was initially issued;\n3. The owner's spouse dies;\n4. The owner divorces his or her spouse;\n5. The owner retires from full-time employment;\n6. The owner become s physically or mentally disabled and a physician\ndetermines that the disability prevents the owner from maintaining full -\ntime employment; or\n7. A final order, judgment, or decree is entered by a court of competent\njurisdiction, on the application of the c reditor of the owner, adjudicating\nthe owner bankrupt or insolvent, or approving a petition seeking\nreorganization of the owner or appointing a receiver, trustee, or\nliquidator to all or a substantial part of the owner's assets.\n(2) Copies of the independe nt evidence described in subsection (1) of this section and\nthe documents required by KRS 304.15 -710 shall be submitted to the insurer when\nthe life settlement provider submits a request to the insurer for verification of\ncoverage. The copies shall be acco mpanied by a letter of attestation from the life\nsettlement provider that the copies are true and correct copies of the documents\nreceived by the life settlement provider.\n(3) If the life settlement provider submits to the insurer a copy of independent evi dence\nprovided for in subsection (2) of this section when the life settlement provider\nsubmits a request to the insurer to effect the transfer of the policy to the life\nsettlement provider, the copy shall be deemed to conclusively establish that the life\nsettlement contract satisfies the requirements of this section and the insurer shall\nrespond timely to the request.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17255","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:44Z","sha256":"cb5d48c95687c71dbbacef9ab2f74a6ead32cb3d1d8853e0926c0d75a5e9819e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.15-715","next":"us-ky/krs-304.15-717"},"notice":"GroundRules: Original legal text. Not legal advice."}