{"data":{"id":"us-ky/krs-304.24-280","jurisdiction":"us-ky","citation":"KRS 304.24-280","heading":"Management and exclusive agency contracts.","body":"(1) No insurer shall hereafter make any contract whereby any person is granted or is to\nenjoy in fact the management of the insurer to the substantial exclusion of its board\nof directors, or to have the controlling or preemptive right to produce substantially\nall insurance business for the insurer, or, if an officer, director or otherwise part of\nthe insurer's management, is to receive any commission, bonus or compensation\nbased upon the volume of the insurer's business or transactions, unless the contract\nis f iled with and approved by the commissioner. The contract shall be deemed\napproved unless disapproved by the commissioner within twenty (20) days after\ndate of filing, subject to such reasonable extension of time as the commissioner may\nrequire by notice gi ven within such twenty (20) days. Any disapproval shall be\ndelivered to the insurer in writing, stating the grounds therefor.\n(2) Any such contract shall provide that any such manager or producer of its business\nshall within ninety (90) days after expirati on of each calendar year furnish the\ninsurer's board of directors a written statement of amounts received under or on\naccount of the contract and amounts expended thereunder during such calendar\nyear, including the emoluments received therefrom by the resp ective directors,\nofficers, and other principal management personnel of the manager or producer, and\nwith such classification of items and further detail as the insurer's board of directors\nmay reasonably require.\n(3) The commissioner shall disapprove any such contract if he or she finds that it:\n(a) Subjects the insurer to excessive charges; or\n(b) Is to extend for any unreasonable length of time; or\n(c) Does not contain fair and adequate standards of performance, or\n(d) Contains other inequitable provisio n or provisions which impair the proper\ninterests of stockholders or policyholders of the insurer.\n(4) The commissioner may, after a hearing held thereon, withdraw his or her approval\nof any such contract theretofore approved by him or her, if he or she fi nds that the\nbases of his or her original approval no longer exist, or that the contract has in\nactual operation, shown itself to be subject to disapproval on any of the grounds\nreferred to in subsection (3) of this section.\n(5) This section does not apply  as to contracts entered into prior to June 18, 1970, nor\nto extensions or amendments to such contracts, nor to relationships and agreements\nbetween parents, subsidiaries, or affiliates.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29560","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"98ff2c70d7bd937d6500393abce1abfe29a4e21f14617f72e0868097a0ed965e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.24-270","next":"us-ky/krs-304.24-290"},"notice":"GroundRules: Original legal text. Not legal advice."}