{"data":{"id":"us-ky/krs-304.33-040","jurisdiction":"us-ky","citation":"KRS 304.33-040","heading":"Jurisdiction and venue.","body":"(1) Actions by commissioner. Except as provided in subsection (2) of this section, and\nsubsection (1) of KRS 304.33 -230, no delinquency proceeding shall be commenced\nunder this subtitle by anyone other than the commissioner and no court shall have\njurisdiction to entertain, hear or determine any proceeding commenced by any other\nperson.\n(2) Action by judgment creditors:\n(a) The judgment creditors of three (3) or more unrelated judgments may\ncommence proceedings under the conditions and in the manner prescribed in\nthis subsection, by serving notice upon the commissioner and the insurer of\nintention to file a petition for liquidation under KRS 304.33 -190 or 304.33 -\n520. Each of the judgments must:\n1. Have been rendered against the insurer by a court in this state h aving\njurisdiction over the subject matter and the insurer;\n2. Have been entered more than sixty (60) days before the service of\nnotice;\n3. Not have been paid in full;\n4. Not be the subject of a valid contract between the insurer and any\njudgment creditor for payment of the judgment, unless the contract has\nbeen breached by the insurer; and\n5. Not be a judgment on which an appeal or review is pending.\n(b) If any one (1) of the judgments in favor of a petitioning creditor remains\nunpaid for thirty (30) days after service of the notice, and the commissioner\nhas not then filed a petition for liquidation, the creditor may file in the name\nof the commissioner a verified petition for liquidation of the insurer under\nKRS 304.33 -190 or 304.33 -520 alleging the condit ions stated in this\nsubsection. The commissioner shall be served and joined in the action.\n(3) Exclusiveness of proceedings.\n(a) The court shall have exclusive jurisdiction to entertain, hear, or determine all\nmatters in any way relating to any delinquency  proceeding under this subtitle,\nincluding but not limited to all disputes involving purported assets of the\ninsurer.\n(b) Notwithstanding the provisions of paragraph (a) of this subsection, the court\nmay authorize the receiver to seek injunctive or other a ppropriate relief from\nother courts, either within or without this state, if, in the opinion of the court,\nthis action will be an aid to any delinquency proceeding.\n(c) The court may issue any order, process, or judgment that is necessary or\nappropriate to carry out the provisions of this subtitle. No provisions in this\nsubtitle shall be construed to preclude the court from, on its own motion,\ntaking any action or making any determination necessary or appropriate to\nenforce or implement court orders or rules or to prevent an abuse of process.\n(4) Change of venue. Venue for proceedings arising under this subtitle shall be laid\ninitially as specified in the sections providing for such proceedings. All other\nactions and procee dings initiated by the receiver may be commenced and tried\nwhere the delinquency proceedings are then pending, or where venue would be laid\nby KRS Chapter 452 or other applicable law. All other actions and proceedings\nagainst the receiver shall be commence d and tried in the county where the\ndelinquency proceedings are pending. At any time upon motion of any party, venue\nmay be changed by order of the court or the presiding judge thereof to any other\nCircuit Court in this state, as the convenience of the par ties and witnesses and the\nends of justice may require. This subsection relates only to venue and is not\njurisdictional.\n(5) Personal jurisdiction, grounds for. In addition to other grounds for jurisdiction\nprovided by the law of this state, a court of thi s state having jurisdiction of the\nsubject matter shall have jurisdiction over a person served in an action brought by\nthe receiver of a domestic insurer or an alien insurer domiciled in this state:\n(a) If the person served is obligated to the insurer in any way as an incident to any\nagency or brokerage arrangement that may exist or has existed between the\ninsurer and the agent or broker, in any action on or incident to the obligation;\n(b) If the person served is a reinsurer who has at any time issued a con tract of\nreinsurance to an insurer against which a rehabilitation or liquidation order is\nin effect when the action is commenced, or is an agent or broker of or for the\nreinsurer, in any action on or incident to the reinsurance contract;\n(c) If the person served is or has been an officer, manager, trustee, organizer,\npromoter, or person in a position of comparable authority or influence in an\ninsurer against which a rehabilitation or liquidation order is in effect when the\naction is commenced, in any action  resulting from the relationship with the\ninsurer;\n(d) If the person served is or was at the time of the institution of the delinquency\nproceedings holding assets in which the receiver claims an interest on behalf\nof the insurer;\n(e) If the person served h as filed a claim against the insurer under the provisions\nof KRS 304.33-360;\n(f) If the person served is otherwise amenable to the exercise of personal\njurisdiction by the courts of this state under the provisions of the due process\nclause of the Fourteenth Amendment to the United States Constitution; or\n(g) If the person served is obligated to the insurer in any way in any action on or\nincident to the obligation.\n(6) Service of process.\n(a) If personal jurisdiction is authorized by this section, service of process may be\nmade on the person, or any agent of the person, in the county of this state\nwhere he or she may be found, or on the Secretary of State who, for this\npurpose, shall be deemed to be the statutory agent of the person.\n(b) The clerk of the cour t in which the action is brought shall issue a summons\nagainst the defendant named in the complaint. The clerk shall execute the\nsummons by sending by certified mail a true copy to the Secretary of State and\nshall also mail with the summons an attested cop y of the complaint. The\nSecretary of State shall, within seven (7) days of receipt thereof in his or her\noffice, mail the copy of the summons and complaint to the defendant at the\naddress given in the complaint. The letter shall be posted by certified mail ,\nreturn receipt requested, and shall bear the return address of the Secretary of\nState. The clerk shall make the usual return to the court, and, in addition, the\nSecretary of State shall make a return to the court showing that the acts\ncontemplated by thi s statute have been performed, and shall attach to his or\nher return the registry receipt, if any. Summons shall be deemed to be served\nupon the return of the Secretary of State and the action shall proceed as\nprovided in the Rules of Civil Procedure.\n(c) The clerk mailing the summons to the Secretary of State shall mail to him or\nher, at the same time, a fee of ten dollars ($10), which shall be taxed as costs\nin the action.\n(7) Forum non conveniens. If the court on motion of any party finds that any action\ncommenced under subsection (5) of this section should as a matter of substantial\njustice be tried in a forum outside this state, the court may enter an order to stay\nfurther proceedings on the action in this state.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29818","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:54Z","sha256":"8bbc9f09792ec45ce6856316f675a4e0294cf672bd8ba86e5c84d3f3599d03d8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.33-030","next":"us-ky/krs-304.33-050"},"notice":"GroundRules: Original legal text. Not legal advice."}