{"data":{"id":"us-ky/krs-304.3-242","jurisdiction":"us-ky","citation":"KRS 304.3-242","heading":"Property and casualty insurers to annually submit statement of actuarial","body":"opinion and supporting documentation -- Opinion to be available for public\ninspection -- Confidentiality of supporting documentation -- Exemptions to\nfiling requirement.\n(1) Every insurer authorized to transact property or casualty insurance, unless otherwise\nexempt in accordance with subsection (7) of this section, shall annually submit the\nopinion of an appointed actuary entitled \"Statement of Actuarial Opinion,\" which\nshall be provided with the annual statement required by KRS 304.3 -240 and 304.3-\n241.\n(2) Every insurer authorized to transact property or casualty insurance that is required\nto submit a statement of actuarial opinion shall annually submit an actuarial opinion\nsummary written by the company's appointed actuary, which shall be provided with\nthe annual statement required by KRS 304.3-240 and 304.3-241 and considered as a\ndocument supporting the statement of actuarial opinion.\n(3) An actuarial report and underlying wo rkpapers shall be prepared to support each\nstatement of actuarial opinion.\n(4) The commissioner may engage a qualified actuary at the expense of the insurer to\nreview the opinion and the basis for the opinion and prepare the supporting actuarial\nreport or workpapers if:\n(a) The insurer fails to provide a supporting actuarial report or workpapers at the\nrequest of the commissioner; or\n(b) The commissioner determines that the supporting actuarial report or\nworkpapers provided by the insurer are otherwise unac ceptable to the\ncommissioner.\n(5) The appointed actuary shall not be liable for damages to any person other than the\ninsurer and the commissioner for any act, error, omission, decision, or conduct with\nrespect to the actuary's opinion, except in cases of gross negligence, fraud, or willful\nmisconduct on the part of the appointed actuary.\n(6) (a) The statement of actuarial opinion shall be provided with the annual statement\nprepared in accordance with KRS 304.3 -240 and 304.3 -241 and shall be\navailable for public inspection.\n(b) Documents, materials, or other information in the possession or control of the\ndepartment that are considered an actuarial report, workpapers, or actuarial\nopinion summary provided in support of the opinion, and any other material\nprovided by the insurer to the commissioner in connection with the actuarial\nreport, workpapers, or actuarial opinion summary, shall be confidential and\nprivileged. The confidentiality and privilege protections contained in this\nparagraph shall not extend to a ny nonregulatory person or entity holding the\ndocuments, materials, or other information.\n(c) Paragraph (b) of this subsection shall not be construed to limit the\ncommissioner's authority to:\n1. Release the documents to the Actuarial Board for Counseling a nd\nDiscipline if the material is required for the purpose of professional\ndisciplinary proceedings and the Actuarial Board for Counseling and\nDiscipline establishes procedures satisfactory to the commissioner for\npreserving the confidentiality of the documents; or\n2. Use the documents, materials, or other information in furtherance of any\nregulatory or legal action brought as part of the commissioner's official\nduties.\n(d) Neither the commissioner nor any person who received documents, materials,\nor other information while acting under the authority of the commissioner\nshall be permitted or required to testify in any private civil action concerning\nany confidential documents, materials, or information subject to this\nsubsection.\n(e) In order to assi st in the performance of his or her duties as set forth in KRS\n304.2-100, the commissioner may:\n1. Share documents, materials, or other information, including the\nconfidential and privileged documents, materials, or information subject\nto this subsection, with other state, federal, and international regulatory\nagencies and with state, federal, and international law enforcement\nauthorities, provided that the recipient agrees to maintain the\nconfidentiality and privileged status of the document, material, or other\ninformation and has the legal authority to maintain confidentiality;\n2. Receive documents, materials, or other information, including otherwise\nconfidential and privileged documents, materials, or information, from\nregulatory and law enforcement offi cials of other foreign or domestic\njurisdictions, and shall maintain as confidential or privileged any\ndocument, material, or information received with notice or the\nunderstanding that it is confidential or privileged under the laws of the\njurisdiction that is the source of the document, material, or information;\nand\n3. Enter into agreements governing the sharing and use of information\nconsistent with this subsection.\n(f) No waiver of any applicable privilege or claim of confidentiality in the\ndocuments, materials, or other information shall occur as a result of disclosure\nto the commissioner under this section or as a result of sharing as authorized\nin paragraph (e) of this subsection.\n(7) It shall not be necessary to file the actuarial report required by t his section in the\nfollowing instances:\n(a) An insurer that has less than one million dollars ($1,000,000) total direct plus\nassumed written premiums during a calendar year, or that has less than one\nthousand (1,000) policyholders or certificate holders at  the end of a calendar\nyear. An insurer which intends to utilize this exemption shall submit a letter of\nintent to the insurance regulatory official in its domiciliary state no later than\nDecember 1 of the calendar year for which the exemption is to be claimed;\n(b) An insurer which is under rehabilitation, liquidation, or any other delinquency\nproceeding ordered pursuant to a statutory provision, unless ordered to make\nthe report by the insurance regulatory official in its domiciliary state;\n(c) An insurer writing property insurance only if the exemption is agreed to by the\ninsurance regulatory official in the insurer's domiciliary state; or\n(d) Filing the report would constitute financial hardship, which is presumed to\nexist if the projected reasonable cost of the report would exceed the lesser of:\n1. One percent (1%) of the insurer's capital and surplus reflected in the\ninsurer's annual statement for the calendar year for which the exemption\nis sought; or\n2. Three percent (3%) of the insurer's net direct pl us assumed premiums\nwritten during the calendar year for which the exemption is sought as\nreflected in the insurer's annual statement filed with the insurance\nregulator official in its domiciliary state.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16723","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:37Z","sha256":"188daabe55992d72ec254e98ad478b0fa3306b5719739c07d2110acfb5c9fb74","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.3-241","next":"us-ky/krs-304.3-245"},"notice":"GroundRules: Original legal text. Not legal advice."}