{"data":{"id":"us-ky/krs-304.49-010","jurisdiction":"us-ky","citation":"KRS 304.49-010","heading":"Definitions for KRS 304.49-010 to 304.49-230.","body":"As used in KRS 304.49-010 to 304.49-230, unless the context requires otherwise:\n(1) \"Affiliated company\" means any company in the same corporate system as a parent,\nan industrial insured, or a member organization by virtue of common ownership,\ncontrol, operation, or management;\n(2) \"Agency captive insurer\" means a captive insurer that is owned by one (1) or more\nbusiness entities that are licensed insurance producers and that only insure risks on\npolicies placed through their owners;\n(3) \"Captive insurer\" m eans any pure captive insurer, consortium captive insurer,\nsponsored captive insurer, special purpose captive insurer, agency captive insurer,\nor industrial insured captive insurer formed or issued a certificate of authority under\nthe provisions of KRS 304 .49-010 to 304.49-230. For purposes of KRS 304.49 -010\nto 304.49-230, a branch captive insurer shall be a pure captive insurer with respect\nto operations in Kentucky, unless otherwise permitted by the commissioner;\n(4) \"Consortium\" means any bona fide legal  association of individuals, corporations,\nlimited liability companies, partnerships, associations, or other entities, the member\norganizations of which collectively, or which does itself:\n(a) Own, control, or hold with power to vote all of the outstanding  voting\nsecurities or member interests of a consortium captive insurer incorporated as\na stock insurer; or\n(b) Have complete voting control over a consortium captive insurer organized as\na mutual insurer; or\n(c) The member organizations of which collective ly constitute all of the\nsubscribers of a consortium captive insurer formed as a reciprocal insurer;\n(5) \"Consortium captive insurer\" means any company that insures risks of the member\norganizations of the consortium and that also may insure the risks of a ffiliated\ncompanies of the member organizations and the risks associated with the\nconsortium itself;\n(6) \"Excess workers' compensation insurance\" means, in the case of an employer that\nhas insured or self -insured its workers' compensation risks in accordan ce with\napplicable state or federal law, insurance in excess of a specified per incident or\naggregate limit established by the commissioner;\n(7) \"Industrial insured\" means an insured as defined in KRS 304.11-020(2);\n(8) \"Industrial insured captive insurer\"  means any company that insures risks of the\nindustrial insureds that comprise the industrial insured group, and their affiliated\ncompanies;\n(9) \"Industrial insured group\" means any group that meets either of the following\ncriteria:\n(a) Any group of industrial insureds that collectively:\n1. Own, control, or hold with power to vote all of the outstanding voting\nsecurities of an industrial insured captive insurer incorporated as a stock\ninsurer;\n2. Have complete voting control over an indus trial insured captive insurer\nincorporated as a mutual insurer; or\n3. Constitute all of the subscribers of an industrial insured captive insurer\nformed as a reciprocal insurer; or\n(b) Any group which is created under the Product Liability Risk Retention Ac t of\n1981, 15 U.S.C. secs. 3901 et seq., as amended, as a corporation or other\nlimited liability association;\n(10) \"Member organization\" means any individual, corporation, partnership, association,\nor other entity that belongs to a consortium;\n(11) \"Parent\" means a corporation, partnership, individual, or other entity that directly or\nindirectly owns, controls, or holds with power to vote more than fifty percent (50%)\nof the outstanding voting securities of a pure captive insurer;\n(12) \"Pure captive insurer \" means any company that insures risks of its parent and\naffiliated companies or controlled unaffiliated business;\n(13) \"Controlled unaffiliated business\" means any person:\n(a) That is not in the corporate system of a parent and its affiliated companies in\nthe case of a pure captive, or that is not in the corporate system or an industrial\ninsured and its affiliated companies in the case of an industrial insured captive\ninsurance company;\n(b) That has an existing contractual relationship with a parent or aff iliated\ncompanies in the case of a pure captive, or with an industrial insured or one\n(1) of its affiliated companies in the case of an industrial insured captive\ninsurance company; and\n(c) Whose risk management function related to the covered risk of loss  is\ncontrolled by an affiliate of a pure captive insurer or an industrial insured\ncaptive insurance company, as applicable, providing coverage or reinsurance;\n(14) \"Foreign captive insurer\" means any insurer formed to write insurance business for\nits parents and affiliates and licensed pursuant to the laws of any state other than\nKentucky which imposes statutory or regulatory standards in a form acceptable to\nthe commissioner on companies transacting the business of insurance in that\njurisdiction. Under KRS  304.49-010 to 304.49 -230, captive insurers formed under\nthe laws of any jurisdiction other than a state of the United States shall be treated as\na foreign captive insurer unless the context requires otherwise;\n(15) \"Branch business\" means any insurance bu siness transacted by a branch captive\ninsurer in Kentucky;\n(16) \"Branch captive insurer\" means any foreign captive insurer issued a certificate of\nauthority by the commissioner to transact the business of insurance in Kentucky\nthrough a business unit with a principal place of business in Kentucky;\n(17) \"Branch operations\" means any business operations of a branch captive insurer in\nKentucky;\n(18) \"Participant\" means an entity as defined in KRS 304.49 -210, and any affiliates\nthereof, that are insured by a sp onsored captive insurer, where the losses of the\nparticipant are limited through a participant contract to the assets of a protected cell;\n(19) \"Participant contract\" means a contract by which a sponsored captive insurer insures\nthe risks of a participant and limits the losses of the participant to the assets of a\nprotected cell;\n(20) \"Protected cell\" means a separate account established and maintained by a\nsponsored captive insurer for one (1) participant;\n(21) \"Reciprocal insurer\" means an insurer engagin g in reciprocal insurance as defined\nby KRS 304.27-010;\n(22) \"Special purpose captive insurer\" means any person that is licensed under this\nchapter and designated as a special purpose captive insurer by the commissioner. A\nperson may be designated as a special purpose captive insurer if it is established for\none (1) specific purpose or transaction, and where it is desirable to isolate the\npurpose or transaction from the other activities of a party or parties involved in the\ntransaction, or where the transac tion dictates that the vehicle should not be treated\nas controlled or owned by any other party to that transaction;\n(23) \"Sponsor\" means any entity that meets the requirements of KRS 304.49 -200 and is\napproved by the commissioner to provide all or part of the capital and surplus\nrequired by applicable law and to organize and operate a sponsored captive insurer;\nand\n(24) \"Sponsored captive insurer\" means any captive insurer:\n(a) In which the minimum capital and surplus required by applicable law is\nprovided by one (1) or more sponsors;\n(b) That is formed or issued a certificate of authority under the provisions of this\nsubtitle;\n(c) That insures the risks of separate participants through contract; and\n(d) That segregates each participant's liability through o ne (1) or more protected\ncells.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30218","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:59Z","sha256":"b97efb1701917c075a005e67c77c25e767a3a9bab32c807b6a7c4a56853a5f19","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.489","next":"us-ky/krs-304.49-020"},"notice":"GroundRules: Original legal text. Not legal advice."}