{"data":{"id":"us-ky/krs-304.3-756","jurisdiction":"us-ky","citation":"KRS 304.3-756","heading":"Written information security program -- Requirements -- Assessments --","body":"Written incident response plan -- Annual certification to commissioner.\n(1) As used in this section:\n(a) \"Authorized individual\" means an individual:\n1. Known to, and screened by, the licensee; and\n2. Determined to be necessary and appropriate to have access to the\nnonpublic information held by the licensee and its information systems;\n(b) \"Multi-factor authentication\" means authentication through verification of at\nleast two (2) of the following methods of authentication factors:\n1. Knowledge factors, such as a password;\n2. Possession factors, such as a token or text message on a mobile phone;\nor\n3. Inherence factors, such as a biometric characteristic; and\n(c) \"Risk assessment\" means the risk assessment that each licensee is required to\nconduct under subsection (3) of this section.\n(2) (a) Each licensee shall develop, implement, and maintain a comprehensive\nwritten information security program based on the licen see's risk assessment\nthat contains administrative, technical, and physical safeguards for the\nprotection of nonpublic information and the licensee's information system.\n(b) The information security program required under this subsection shall be:\n1. Commensurate with the:\na. Size and complexity of the licensee;\nb. Nature and scope of the licensee's activities, including its use of\nthird-party service providers; and\nc. Sensitivity of the nonpublic information used by the licensee or in\nthe licensee's possession, custody, or control; and\n2. Designed to:\na. Protect the security and confidentiality of nonpublic information\nand the security of the information system;\nb. Protect against any threats or hazards to the security or integrity of\nnonpublic information and the information system;\nc. Protect against unauthorized access to or use of nonpublic\ninformation and minimize the likelihood of harm to any consumer;\nand\nd. Define, and periodically reevaluate:\ni. A schedule for retention of nonpublic information; and\nii. A mechanism for the destruction of nonpublic information\nwhen no longer needed, which shall comply with KRS\n365.725.\n(3) Each licensee shall:\n(a) Designate one (1) or more employees, an affiliate, or an outside vendor\ndesignated to act on behalf of th e licensee who is responsible for the\ninformation security program;\n(b) Identify reasonably foreseeable internal or external threats that could result in\nunauthorized access, transmission, disclosure, misuse, alteration, or\ndestruction of nonpublic informa tion, including the security of information\nsystems and nonpublic information that are accessible to, or held by, third -\nparty service providers;\n(c) Assess the likelihood and potential damage of the threats identified under\nparagraph (b) of this subsection , taking into consideration the sensitivity of\nthe nonpublic information;\n(d) Assess the sufficiency of policies, procedures, information systems, and other\nsafeguards in place to manage the threats identified under paragraph (b) of\nthis subsection, including consideration of threats in each relevant area of the\nlicensee's operations, including:\n1. Employee training and management;\n2. Information systems, including network and software design,\ninformation classification, governance, processing, storage,\ntransmission, and disposal; and\n3. Detection, prevention, and response to attacks, intrusions, or other\nsystem failures;\n(e) Implement information safeguards to manage the threats identified in the\nlicensee's ongoing assessment; and\n(f) No less than annually,  assess the effectiveness of the key controls, systems,\nand procedures of the safeguards implemented under paragraph (e) of this\nsubsection.\n(4) Based on its risk assessment, each licensee shall:\n(a) Design its information security program to mitigate the identified risks\ncommensurate with the:\n1. Size and complexity of the licensee; and\n2. Nature and scope of the licensee's activities, including its use of third -\nparty service providers;\n(b) Implement the following security measures, as appropriate:\n1. Place access controls on information systems, including controls to\nauthenticate and permit access only to authorized individuals to protect\nagainst the unauthorized acquisition of nonpublic information;\n2. Identify and manage the data, personnel, devices, systems, and facilities\nthat enable the organization to achieve business purposes in accordance\nwith their relative importance to business objectives and the\norganization's risk strategy;\n3. Restrict physic al access to nonpublic information to authorized\nindividuals only;\n4. Protect, by encryption or other appropriate means, all nonpublic\ninformation:\na. While being transmitted over an external network; and\nb.  Stored on a laptop computer or other portable c omputing or\nstorage device or media;\n5. Adopt:\na. Secure development practices for in -house developed applications\nutilized by the licensee; and\nb. Procedures for evaluating, assessing, or testing the security of\nexternally developed applications utilized by the licensee;\n6. Modify the information system in accordance with the licensee's\ninformation security program;\n7. Utilize effective controls, which may include multi -factor authentication\nprocedures for any individual accessing nonpublic information;\n8. Regularly test and monitor systems and procedures to detect actual and\nattempted attacks on, or intrusions into, information systems;\n9. Include audit trails within the information security program designed to:\na. Detect and respond to cybersecurity events; and\nb. Reconstruct material financial transactions sufficient to support\nnormal operations and obligations of the licensee;\n10. Implement measures to protect against destruction, loss, or damage of\nnonpublic information due to environmental hazards, su ch as fire and\nwater damage, or other catastrophes or technological failures; and\n11. Develop, implement, and maintain procedures for the secure disposal of\nnonpublic information in any format;\n(c) Include cybersecurity risks in the licensee's enterprise r isk management\nprocess;\n(d) Stay informed regarding emerging threats or vulnerabilities;\n(e) Utilize reasonable security measures when sharing information commensurate\nwith the character of the sharing and the type of information shared; and\n(f) Provide its personnel with cybersecurity awareness training that is updated as\nnecessary to reflect risks identified by the licensee in its risk assessment.\n(5) (a) A licensee's executive management or its delegates shall, at a minimum:\n1. Develop, implement, and maintain the licensee's information security\nprogram; and\n2. If the licensee has a board of directors or other appropriate committee,\nreport at least annuall y, in writing, to the board or committee the\nfollowing information:\na. The overall status of the information security program and the\nlicensee's compliance with KRS 304.3-750 to 304.3-768; and\nb. Material matters related to the information security program ,\naddressing issues including risk assessment, risk management and\ncontrol decisions, third -party service provider arrangements,\nresults of testing, cybersecurity events or violations and\nmanagement's response to the events or violations, and\nrecommendations for changes in the information security program.\n(b) If a licensee's executive management delegates any of its responsibilities\nunder this subsection, executive management shall:\n1. Oversee the development, implementation, and maintenance of the\nlicensee's information security program prepared by the delegate or\ndelegates; and\n2. Receive a report from the delegate or delegates that complies with the\nrequirements of paragraph (a)2. of this subsection.\n(6) Each licensee that uses a third-party service provider shall:\n(a) Exercise due diligence in selecting the third-party service provider; and\n(b) Require the third -party service provider to implement appropriate\nadministrative, technical, and physical measures to protect and secure the\ninformation systems and nonpublic information that are accessible to, or held\nby, the third-party service provider.\n(7) Each licensee shall monitor, evaluate, and adjust, as appropriate, the information\nsecurity program consistent with:\n(a) Any relevant changes in technology;\n(b) The sensitivity of its nonpublic information;\n(c) Internal or external threats to information; and\n(d) The licensee's own changing business arrangements, including mergers and\nacquisitions, alliances and joint ventures, outsourcing arrangements, and\nchanges to information systems.\n(8) (a) As part of its information security program, each licensee shall establish a\nwritten incident response plan designed to promptly respond to, and recover\nfrom, any cybersecurity event that compromises:\n1. The confidentiality, integrity, or availability of nonpublic information in\nits possession;\n2. The licensee's information systems; or\n3. The continuing functionality of any aspect of the licensee's business or\noperations.\n(b) The incident response plan established unde r this subsection shall address the\nfollowing:\n1. The internal process for responding to a cybersecurity event;\n2. The goals of the incident response plan;\n3. The definition of clear roles, responsibilities, and levels of decision -\nmaking authority;\n4. External and internal communications and information sharing;\n5. Identification of requirements for the remediation of any identified\nweaknesses in information systems and associated controls;\n6. Documentation and reporting regarding cybersecurity events and related\nincident response activities; and\n7. The evaluation and revision, as necessary, of the incident response plan\nfollowing a cybersecurity event.\n(9) (a) Each insurer domiciled in this state shall:\n1. By February 15 of each year, submit to the commissioner a written\nstatement certifying that the insurer is in co mpliance with this section;\nand\n2. Maintain, for examination by the department, all records, schedules, and\ndata supporting the certification submitted under subparagraph 1. of this\nparagraph for a period of five (5) years.\n(b) 1. To the extent an insurer has identified areas, systems, or processes that\nrequire material improvement, updating, or redesign, the insurer shall\ndocument the identification and remedial efforts planned and underway\nto address the areas, systems, or processes identified.\n2. The documentation required under this paragraph shall be available for\ninspection by the commissioner for a period of five (5) years.\n(10) (a) An employee, agent, representative, or designee of a licensee, who is also a\nlicensee, shall be exempt from the requirem ents of this section and shall not\nbe required to develop its own information security program to the extent that\nthe employee, agent, representative, or designee is covered by the information\nsecurity program of the other licensee.\n(b) In the event that a licensee ceases to qualify for an exception under paragraph\n(a) of this subsection, the licensee shall have one hundred eighty (180) days to\ncomply with this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53294","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:38Z","sha256":"ed99157f62d208ad48b4b6973d12839143850c8b69d65507ff59f1b6bceca700","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.3-754","next":"us-ky/krs-304.3-758"},"notice":"GroundRules: Original legal text. Not legal advice."}