{"data":{"id":"us-ky/krs-304.3-530","jurisdiction":"us-ky","citation":"KRS 304.3-530","heading":"Duties and responsibilities of insured and controlling agent.","body":"(1) The insurer shall have on file an independent financial examination, in a form\nacceptable to the commissioner, of each controlling agent with which it has done\nbusiness.\n(2) If a controlling agent establishes loss reserves, the insurer shall annually obtai n the\nopinion of an actuary attesting to the adequacy of loss reserves established for\nlosses incurred and outstanding on business produced by the controlling agent. This\nis in addition to any other required loss reserve certification.\n(3) The insurer shal l at least semiannually conduct an on -site review of underwriting\nand claims processing operations of the controlling agent.\n(4) Binding authority for all reinsurance contracts or participation in insurance or\nreinsurance syndicates shall rest with an offi cer of the insurer, who shall not be\naffiliated with the controlling agent.\n(5) Within thirty (30) days of entering into or termination of a contract with a\ncontrolling agent, the insurer shall provide written notification of the appointment\nor termination to the commissioner. Notices of appointment of a controlling agent\nshall include a statement of the duties which the applicant is expected to perform on\nbehalf of the insurer, the lines of insurance for which the applicant is authorized to\nact, and any other information the commissioner may request.\n(6) An insurer shall review its books and records each quarter to determine if any\nperson producing business has become a controlling agent as defined in KRS 304.3-\n500(3). If the insurer determines that a perso n producing business has become a\ncontrolling agent, the insurer shall promptly notify the person producing business\nand the commissioner of this determination and the insurer and the person\nproducing business must fully comply with the provisions of KRS 3 04.3-500 to\n304.3-570 within thirty (30) days.\n(7) An insurer shall not appoint to its board of directors an officer, director, employee,\nsubproducer, or controlling shareholder of any of its controlling agents. This\nsubsection shall not apply to relationships governed by Subtitle 37 of this chapter or\nany provisions of this subtitle pertaining to business transacted with a producer\ncontrolled property or casualty insurer.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16743","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:37Z","sha256":"4b60556ae216fc63f3f792739b88f64a3671ceea565da9a399f043b08b3c365e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.3-520","next":"us-ky/krs-304.3-540"},"notice":"GroundRules: Original legal text. Not legal advice."}