{"data":{"id":"us-ky/krs-304.7-365","jurisdiction":"us-ky","citation":"KRS 304.7-365","heading":"Transactions in which officer or director of insurer has a financial","body":"interest.\n(1) (a) Except as provided in subsection (2) of this section, an insurer shall not,\nwithout the prior written approval of the commissioner, directly or indirectly:\n1. Make a loan to or invest in an officer or director of the insurer or a\nperson in which the officer or director has any direct or indirect financial\ninterest;\n2. Make a guarantee for the benefit of or in favor of an officer or director\nof the insurer or a pers on in which the officer or director has any direct\nor indirect financial interest; or\n3. Enter into an agreement for the purchase or sale of property from or to\nan officer or director of the insurer or a person in which the officer or\ndirector has any direct or indirect financial interest.\n(b) For purposes of this section, an officer or director shall not be deemed to have\na financial interest by reason of an interest that is held directly or indirectly\nthrough the ownership of equity interests representing  less than two percent\n(2%) of all outstanding equity interests issued by a person that is a party to the\ntransaction, or solely by reason of that individual's position as a director or\nofficer of a person that is a party to the transaction.\n(c) This subse ction does not permit an investment that is prohibited by KRS\n304.7-363.\n(d) This subsection does not apply to a transaction between an insurer and any of\nits subsidiaries or affiliates that is entered into in compliance with Subtitle 37\nof KRS Chapter 304 , other than a transaction between an insurer and its\nofficer or director.\n(2) An insurer may make, without the prior written approval of the commissioner:\n(a) Policy loans in accordance with the terms of the policy or contract and KRS\n304.7-401:\n(b) Advances to officers or directors for expenses reasonably expected to be\nincurred in the ordinary course of the insurer's business or guarantees\nassociated with credit or charge cards issued or credit extended for the\npurpose of financing these expenses;\n(c) Loans secured by the principal residence of an existing or new officer of the\ninsurer made in connection with the officer's relocation at the insurer's request,\nif the loans comply with the requirements of KRS 304.7 -413 or 304.7 -465,\nand the terms and condit ions otherwise are the same as those generally\navailable from unaffiliated third parties;\n(d) Secured loans to an existing or new officer of the insurer made in connection\nwith the officer's relocation at the insurer's request, if the loans:\n1. Do not have a term exceeding two (2) years;\n2. Are required to finance mortgage loans outstanding at the same time on\nthe prior and new residences of the officer;\n3. Do not exceed an amount equal to the equity of the officer in the prior\nresidence; and\n4. Are required to be fully repaid upon the earlier of the end of the two (2)\nyear period or the sale of the prior residence; and\n(e) Loans and advances to officers or directors made in compliance with state or\nfederal law specifically related to the loans an d advances by a regulated\nnoninsurance subsidiary or affiliate of the insurer in the ordinary course of\nbusiness and on terms no more favorable than available to other customers of\nthe entity.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16838","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:39Z","sha256":"0f474de125c099df8463a52bf6435cd1548dc4cacdb7c696d0e649dc20de7304","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.7-363","next":"us-ky/krs-304.7-367"},"notice":"GroundRules: Original legal text. Not legal advice."}