{"data":{"id":"us-ky/krs-304.3-725","jurisdiction":"us-ky","citation":"KRS 304.3-725","heading":"Completion and review of beta test -- Issuance of extended no -action","body":"letter or notice declining to issue extended letter -- Safe harbor of extended\nletter -- Use of innovation and conduct permitted -- Hearing -- Publication of\nextended letter on department's Web site.\n(1) (a) Within sixty (60) days of completion of the beta test, unless the time period is\nextended up to thirty (30) days upon notice from the commissioner, the\ncommissioner shall issue an extended no -action letter or a notice dec lining to\nissue an extended no-action letter.\n(b) The participant may continue to employ the insurance innovation pursuant to\nthe terms and conditions of the limited letter during the period between the\ncompletion of the beta test and the issuance of eithe r an extended no -action\nletter or a notice declining to issue an extended no-action letter.\n(2) The commissioner shall review the results of the beta test to determine whether the\ninnovation satisfies the following requirements:\n(a) The data presented demo nstrates that the innovation's utility was meritorious\nof an extension;\n(b) Regulatory and statutory barriers prevent continued use of the innovation\nwithin this Commonwealth;\n(c) The innovation provided a benefit to Kentucky consumers; and\n(d) The issuance of an extended no-action letter:\n1. Presents no risk of unreasonable harm to consumers or the marketplace;\nand\n2. Serves the public interest.\n(3) Upon review of the results of the beta test, the commissioner shall, in his or her\ndiscretion, issue one (1) of the following:\n(a) If the commissioner determines that the innovation fails to satisfy any of the\nrequirements under subsection (2) of this section, he or she shall:\n1. Issue a notice declining to issue an extended no-action letter;\n2. Describe in the notice the reasons for the declination;\n3. Notify the participant for the innovation of the notice; and\n4. Publish the notice on the department's Web site; or\n(b) If the commissioner determines that the innovation satisfies the requirements\nunder subsection (2) of this section, he or she shall issue an extended no -\naction letter. An extended no -action letter issued by the commissioner shall\ninclude:\n1. A description of the insurance innovation and the specific conduct\npermitted by the extended letter in sufficient detail to enable any person\nto use the innovation or a product, process, method, or procedure not\nsubstantially different from the innovation within the safe harbor of the\nextended letter;\n2. Notice of any certificate of authority, l icense, or permit the\ncommissioner determines is necessary to use, sell, or license the\ninnovation, or make the innovation available, in this Commonwealth;\n3. An expiration date not greater than three (3) years following the date of\nissuance;\n4. Notice that the extended no-action letter may:\na. Only be modified by:\ni. Promulgation of an administrative regulation, if the safe\nharbor addresses a requirement established by administrative\nregulation; or\nii. An act of the General Assembly; and\nb. Be rescinded pr ior to its expiration if the commissioner receives\ncomplaints and determines continued activity poses a risk of harm\nto consumers;\n5. Clarification of required procedures related to the issuance and\ncancellation of any policies of insurance, if applicable,  due to the\nexpiration period; and\n6. Notice that, upon expiration, all persons relying on the extended no -\naction letter shall cease and desist operations related to the innovation\nunless changes have been made to Kentucky law to permit the\ninnovation by:\na. The promulgation of an administrative regulation, if the safe\nharbor address a requirement established by administrative\nregulation; or\nb. An act of the General Assembly.\n(4) A hearing on a notice of declination may be requested in accordance with KRS\n304.2-310.\n(5) An extended no -action letter issued by the commissioner pursuant to this section\nshall be:\n(a) Exempt from the application of KRS 13A.130; and\n(b) Published on the department's Web site.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49150","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:38Z","sha256":"d02ee30d7cff7fc4c1ed460579280863254e59e379148409762de5380c41c0f5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.3-720","next":"us-ky/krs-304.3-730"},"notice":"GroundRules: Original legal text. Not legal advice."}