{"data":{"id":"us-ky/krs-304.45-040","jurisdiction":"us-ky","citation":"KRS 304.45-040","heading":"Requirements for doing business -- Exemptions.","body":"Risk retention groups chartered and licensed in states other than this state and seeking to\ndo business as a risk retention group in this state shall observe and abide by the laws of\nthis state as follows:\n(1) Before offering insurance in this state, a ris k retention group shall submit to the\ncommissioner:\n(a) A statement identifying the state or states in which the risk retention group is\nchartered and licensed as a liability insurance company, date of chartering and\nlicensing, its principal place of busin ess, and any other information, including\ninformation on its membership, as the commissioner of this state may require\nto verify that the risk retention group is qualified under KRS 304.45-020(15);\n(b) A copy of its plan of operation or a feasibility study  and revisions of the plan\nor study submitted to its state of domicile, but the provision relating to the\nsubmission of a plan of operation or a feasibility study shall not apply as to\nany kind or classification of liability insurance which was defined in the\nProduct Liability Risk Retention Act of 1981 before October 27, 1986, and\nwas offered before that date by any risk retention group which had been\nchartered and operating for not less than three (3) years at that time; and\n(c) A statement of registration which designates the Secretary of State as its agent\nfor the purpose of receiving service of legal documents or process.\n(2) Any risk retention group doing business in this state shall submit to the\ncommissioner:\n(a) A copy of the group's financial state ment submitted to the state in which the\nrisk retention group is chartered and licensed, which shall be certified by an\nindependent public accountant and contain a statement of opinion on loss and\nloss adjustment expense reserves made by a member of the Am erican\nAcademy of Actuaries or a qualified loss reserve specialist under criteria\nestablished by the National Association of Insurance Commissioners;\n(b) A copy of each financial, market conduct, or other examination of the risk\nretention group as certified by the commissioner or public official conducting\nthe examination;\n(c) Upon request by the commissioner, a copy of any audit performed with\nrespect to the risk retention group; and\n(d) Any information as may be required to verify its continuing qualifica tion as a\nrisk retention group under KRS 304.45-020(15).\n(3) A risk retention group shall, within ten (10) days, notify the commissioner of any\nchanges in any of the information required in subsections (1) and (2) of this section.\n(4) Any risk retention gr oup shall submit to an examination by the commissioner to\ndetermine its financial condition if the commissioner of the jurisdiction in which the\ngroup is chartered and licensed has not initiated an examination or does not initiate\nan examination within six ty (60) days after a request by the commissioner of this\nstate. Any examination shall be coordinated to avoid unjustified repetition and\nconducted in an expeditious manner and in accordance with the National\nAssociation of Insurance Commissioners' examiner  handbook. The examinations\nshall be conducted in accordance with KRS 304.2-210 to 304.2-300.\n(5) Any application used or any policy issued by a risk retention group shall contain in\nten (10) point boldface type the following legend:\nNOTICE\nTHIS POLICY IS ISSUED BY YOUR RISK RETENTION GROUP. YOUR\nRISK RETENTION GROUP MAY NOT BE SUBJECT TO ALL OF THE\nINSURANCE LAWS AND REGULATIONS OF YOUR STATE. STATE\nINSURANCE INSOLVENCY GUARANTY FUNDS ARE NOT\nAVAILABLE FOR YOUR RISK RETENTION GROUP.\n(6) In the solicitation or sale of insurance, a risk retention group shall not:\n(a) Solicit or sell insurance to any person who is not eligible for membership in\nthe group; and\n(b) Solicit or sell insurance issued by, or otherwise operate, a risk retention group\nthat is in a hazardous financial condition or is financially impaired.\n(7) No risk retention group shall be allowed to do business in this state if an insurance\ncompany is directly or indirectly a member or owner of the risk retention group,\nexcept if all members of the risk retention group are insurance companies.\n(8) A risk retention group shall not offer insurance policy coverage prohibited by\nstatute or regulation or declared unlawful by the highest court of this state.\n(9) A risk retention group not cha rtered in this state and doing business in this state\nshall comply with a lawful order issued in a voluntary dissolution proceeding or in a\ndelinquency proceeding commenced by a commissioner if there has been a finding\nof financial impairment after an examination under subsection (4) of this section.\n(10) A risk retention group registered in this state as a product liability risk retention\ngroup under the provisions of KRS Chapter 304 in effect prior to July 13, 1990,\nmay continue to act as one without comp lying with this subtitle as long as it\ncomplies with the provisions of KRS Chapter 304 in effect prior to July 13, 1990.\nThe exception provided in this subsection shall cease to apply to any product\nliability risk retention group which offers kinds of liab ility insurance other than\nproduct liability or completed operations liability insurance.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47097","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:59Z","sha256":"5b99523e17223b4dec12b0b3f3ba7dd16acc21d8a4e199994c0db9e26e95ef7d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.45-032","next":"us-ky/krs-304.45-050"},"notice":"GroundRules: Original legal text. Not legal advice."}