{"data":{"id":"us-ky/krs-304.3-200","jurisdiction":"us-ky","citation":"KRS 304.3-200","heading":"Suspension or revocation of certificate of authority -- Discretionary and","body":"special grounds.\n(1) The commissioner may, in his or her discretion, refuse to continue or may suspend\nor revoke an insurer's certificate of authority if he or she find s after a hearing\nthereon, or upon waiver of hearing by the insurer, that the insurer has:\n(a) Willfully violated or willfully failed to comply with any lawful order of the\ncommissioner; or\n(b) Willfully violated or willfully failed to comply with any lawf ul regulation of\nthe commissioner; or\n(c) Willfully violated any provision of this code other than those for violation of\nwhich suspension or revocation is mandatory; or\n(d) Failed to pay taxes on its premiums as required by law; or\n(e) Has committed any unfair claims settlement practice as defined in Subtitle 12\nor regulations promulgated thereunder.\nIn lieu of or in addition to such suspension or revocation, the commissioner may, in\nhis or her discretion, reprimand the insurer, which shall be made a part  of the\ninsurer's record, or may levy upon the insurer, and the insurer shall pay forthwith, an\nadministrative fine as specified in KRS 304.99-020.\n(2) The commissioner shall suspend or revoke an insurer's certificate of authority on\nany of the following g rounds, if he or she finds after a hearing thereon that the\ninsurer:\n(a) Is in unsound condition, or is being fraudulently conducted, or is in such\ncondition or using such methods and practices in the conduct of its business as\nto render its further transa ction of insurance in this state currently or\nprospectively hazardous or injurious to policyholders or to the public;\n(b) With such frequency as to indicate its general business practice in this state:\n1. Has without just cause failed to pay, or delayed pa yment of, claims\narising under its policies, whether the claim is in favor of an insured or\nis in favor of a third person with respect to the liability of an insured to\nsuch third person; or\n2. Without just cause compels insureds or claimants to accept les s than the\namount due them or to employ attorneys or to bring suit against the\ninsurer or such an insured to secure full payment or settlement of such\nclaims;\n(c) Refuses to be examined, or if its directors, officers, employees or\nrepresentatives refuse to submit to examination relative to its affairs, or to\nproduce its accounts, records and files for examination by the commissioner\nwhen required, or refuse to perform any legal obligation relative to the\nexamination;\n(d) Has failed to pay any f inal judgment rendered against it in this state upon any\npolicy, bond, recognizance or undertaking as issued or guaranteed by it, within\nthirty (30) days after the judgment became final or within thirty (30) days after\ndismissal of an appeal before final determination, whichever date is the later;\n(e) Has actual knowledge by the chief executive officer or person in charge of\nKentucky operations that an agent employed by the insurer has engaged or is\nengaging in conduct in violation of this code and the insu rer has failed to\nreport such conduct to the department; or\n(f) No insurer, its agents, servants, or employees shall incur any liability in\nconnection with or as a result of any disclosure made to the commissioner of\ninsurance pursuant to the provisions of this section.\n(3) The commissioner may, in his or her discretion and without advance notice or a\nhearing thereon, immediately suspend the certificate of authority of any insurer as to\nwhich proceedings for receivership, conservatorship, rehabilitation or other\ndelinquency proceedings have been commenced in any state by the public insurance\nsupervisory officer of such state.\n(4) The commissioner may, in his or her discretion, refuse to continue or may suspend\nor revoke an insurer's certificate of authority if he or she finds after a hearing\nthereon, or upon waiver of hearing by the insurer, that the insurer has contracted\nwith the Department for Medicaid Services to act as a managed care organization\nproviding Medicaid benefits pursuant to KRS Chapter 205 and has exhibited willful\nor frequent and repeated failure to comply with KRS 304.17A -700 to 304.17A-730,\n205.593, and 304.14-135 and KRS 205.522, 205.532 to 205.536, and 304.17A-515.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47796","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:37Z","sha256":"9211d92b65d0ad428f3ca346633a56d7610ba5f470b13cb71b727eb060b85f69","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.3-190","next":"us-ky/krs-304.3-210"},"notice":"GroundRules: Original legal text. Not legal advice."}