{"data":{"id":"us-ky/krs-304.9-135","jurisdiction":"us-ky","citation":"KRS 304.9-135","heading":"Requirements for financial institutions engaging in insurance agency","body":"activities -- Administrative regulations -- Activities of officers or employees of\nfinancial institution.\n(1) As used in this section:\n(a) \"Financial institution\" means:\n1. A bank or bank holding company, as defined in the Bank Holding\nCompany Act of 1956, codified at 12 U.S.C. sec. 1841, as amended;\n2. A savings bank, savings and loan association, trust company, or any\ndepository institution as defined in the Federal Depos it Insurance Act,\ncodified at 12 U.S.C. sec. 1813(c)(1), as amended; and\n3. Any other individual, corporation, partnership, or association authorized\nto take deposits and make loans in this Commonwealth, and any affiliate\nor subsidiary of any of the above;\n(b) \"Insurance agency activities\" means any activity relating to insurance, other\nthan title insurance, for which a license as agent, reinsurance intermediary\nbroker or manager, surplus lines broker, or consultant is required under this\nchapter; and\n(c) \"Insurance information\" means any information concerning premiums, terms,\nand conditions of insurance coverage, including:\n1. Expiration dates and rates; and\n2. Claims maintained in the records of the financial institution or affiliate.\n(2) A financial institution authorized by law to engage in insurance agency activities in\nthis state shall, in addition to any other applicable requirements, comply with the\nfollowing requirements:\n(a) The financial institution or officer, agent, representative, or employee thereof\nshall qualify for licensure under all applicable provisions of this chapter and\nabide by all applicable provisions of this chapter and applicable administrative\nregulations;\n(b) A financial institution shall provide a written statement to a consumer\nregarding the consumer's free choice of agent and insurer according to KRS\n304.12-150, when the consumer's application for a loan or other extension of\ncredit from the financial institution is pending and when insurance is offered\nto the consumer, sold to the consumer, or required in connection with the loan\nor extension of credit by the financial institution or affiliate;\n(c) A financial institution shall not r elease a consumer's insurance information to\nany person or entity for the solicitation or selling of insurance, other than an\nofficer, director, employee, agent, or affiliate of a financial institution, without\nprior disclosure to the consumer and the oppo rtunity for the consumer to\nprevent the disclosure;\n(d) A financial institution shall not release or use health information obtained\nfrom the insurance records of a consumer for any purpose, other than\nactivities of a licensed agent, administrator, reinsur ance intermediary broker\nor manager, surplus lines broker, or consultant, without the written consent of\nthe consumer;\n(e) A financial institution licensed by the department to engage in insurance\nagency activities shall:\n1. Not violate the anti-tying provisions of the Bank Holding Company Act\nAmendments of 1970, codified at 12 U.S.C. sec. 1971 et seq., in effect\nas of December 31, 1997; and\n2. Notify the department in writing within ten (10) days of any final\njudgment or any final administrative action, by  a federal agency\nauthorized to enforce the anti -tying provision, that finds that the\nfinancial institution or any of its employees committed a violation of the\nBank Holding Company Act. Any such final and unappealable judgment\nor final and unappealable ad ministrative action shall be deemed a\nviolation of this chapter;\n(f) Prior to the sale of any policy of insurance to a consumer, a financial\ninstitution shall, when practicable, provide to the consumer a written\nstatement that:\n1. The insurance offered by the financial institution is not a deposit;\n2. The insurance offered by the financial institution is not insured by the\nFederal Deposit Insurance Corporation or other government agency that\ninsures deposits;\n3. The insurance offered by the financial instit ution is not guaranteed by\nthe financial institution or any affiliate;\n4. The insurance may involve investment risk, including potential loss of\nprincipal; and\n(g) The commissioner shall promulgate administrative regulations in accordance\nwith KRS Chapter 13A that specify the disclosure forms required by\nparagraphs (b), (c), and (f) of this subsection.\n(3) An officer or employee of a financial institution shall not directly or indirectly\ndelay or impede the completion of a loan transaction or any other tran saction with a\nfinancial institution for the purpose of influencing a consumer's selection or\npurchase of any insurance.\n(4) A financial institution shall not use any advertisement or promotional material\ncausing a reasonable person to mistakenly believe that:\n(a) The federal government or any state guarantees the insurance sales activities\nof financial institutions or guarantees the credit of the financial institution; or\n(b) Any state or federal government guarantees any return on insurance products\nor is  a source of payment on any insurance product sold by the financial\ninstitution.\n(5) A financial institution shall use separate documentation for all credit and insurance\ntransactions when a consumer obtains insurance and credit, other than credit\ninsurance, from a financial institution or any individual or business entity soliciting\nor selling insurance on the premises of a financial institution.\n(6) A financial institution shall not include an expense of insurance premiums in a\ncredit transaction when a c onsumer obtains insurance and credit, other than credit\ninsurance, from a financial institution or any individual or business entity soliciting\nor selling insurance on the premises of a financial institution, without the written\nconsent of the consumer.\n(7) (a) A financial institution shall maintain separate and distinct books and records\nrelating to insurance transactions conducted through the financial institution,\nincluding files relating to consumer complaints.\n(b) The books, records, and files shall be  made available to the commissioner for\ninspection in accordance with KRS 304.2-220.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57329","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:40Z","sha256":"01f4e2d8ab0cdc4cfac63c2e120cf11978b9965016afc0c6cbb1adbb2e49b2cb","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.9-133","next":"us-ky/krs-304.9-136"},"notice":"GroundRules: Original legal text. Not legal advice."}