{"data":{"id":"us-ky/krs-304.2-065","jurisdiction":"us-ky","citation":"KRS 304.2-065","heading":"Early warning analyst.","body":"(1) There is created within the Department of Insurance the position of early warning\nanalyst.\n(2) The commissioner shall appoint a qualified person to serve as early warning analyst.\n(3) The early warning analyst shall detect domiciled companies and companies  doing a\nsignificant amount of business in the Commonwealth that are in a hazardous or\npotentially hazardous financial condition.\n(4) The early warning analyst shall be part of the Financial Standards and Examination\nDivision.\n(5) The early warning analyst shall:\n(a) Take advantage of the information available through the Insurance Regulatory\nInformation System and use the information to monitor insurers;\n(b) Seek information from other states' detection programs;\n(c) Work with other Department of Insurance  employees representing key\nregulatory areas of the department;\n(d) Coordinate and develop the use of an indicator list to determine if an insurer is\nin a hazardous condition. The indicator list shall include but is not limited to\nthe following indicators:\n1. An insurer fails to file a timely financial statement as established in KRS\nChapter 304;\n2. An insurer files financial information which is false or misleading;\n3. An insurer overstates its surplus by twenty-five percent (25%) or more;\n4. An insurer fails to grant authorization to amend its financial statement\nwhen requested;\n5. An insurer's financial ratios are outside of the usual range established by\nthe National Association of Insurance Commissioners in the Insurance\nRegulatory Information System;\n6. A projection by the department of an insurer's current financial condition\nindicates that the sum of its paid -in capital, paid -in surplus, and\ncontributed surplus will be reduced within the next twelve (12) months;\n7. An insurer's aggregate net retained risk, direct or assumed, under any\none (1) insurance policy or certificate of insurance under a group policy\nis more than ten percent (10%) of the insurer's surplus, except where\notherwise permitted by law;\n8. An insurer's reserves for losses and loss adjustment expenses are\ndiscounted more than ten percent (10%) of the surplus;\n9. An affiliate or subsidiary of an insurer is unable to pay its obligations as\nthe obligations become due and payable;\n10. A life, accident, and health insurer has pre mium writings that result in\nthe surplus being less than five percent (5%) of the aggregate general\naccount reserves for the life insurance in force plus twenty -five percent\n(25%) of the new annualized accident and health premium writing;\n11. An insurer ha s reinsurance reserve credits, recoverable or receivable,\nthat are disputed by the reinsurer, or are due and payable and remain\nunpaid, and the reinsurance credits, recoverables, and receivables are\nmore than ten percent (10%) of an insurer's surplus;\n12. An insurer consistently issues subordinate premium or surplus\ndebentures to finance its operations;\n13. An insurer fails to adequately maintain books and records in a manner\nthat permits examiners to determine the financial condition of the\ninsurer;\n14. An insurer has reinsurance agreements affecting twenty percent (20%) or\nmore of the insurer's gross written premiums, direct or assumed, and the\nassuming insurers are not licensed to do insurance business in the\nCommonwealth of Kentucky;\n15. An insurer's man agement does not have the experience, competence, or\ntrustworthiness to operate the insurer in a safe and sound manner;\n16. An insurer's management engages in unlawful transactions;\n17. An insurer fails to have an appraisal made on real estate upon which t he\ninsurer has made a mortgage loan;\n18. An insurer fails to comply with the terms of an agreement with an\naffiliate;\n19. An insurer has a pattern of refusing to settle valid claims within a\nreasonable time after due proof of the loss has been received;\n20. An insurer fails to follow a policy on rating and underwriting standards\nappropriate to the risk;\n21. An insurer violates KRS Chapter 304;\n22. A final administrative or judicial order, initiated by an insurance\nregulatory agency of another state, is issued against an insurer; and\n23. An insurer is in any condition that the commissioner finds is a hazard to\npolicyholders, creditors, or the general public;\n(e) Recommend regulatory action and provide status reports to the commissioner;\nand\n(f) Appear before the Interim Joint Committee on Banking and Insurance or the\nStanding Committees on Banking and Insurance annually to report on the\nstatus of domestic insurance companies and insurance companies doing a\nsubstantial amount of business in the Commonwealth of Kentucky.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16652","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:36Z","sha256":"798416d32d3d6886b2babecaf623bbdf4777e852f8889b1d6480bd7e2e57857d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.2-063","next":"us-ky/krs-304.2-070"},"notice":"GroundRules: Original legal text. Not legal advice."}