{"data":{"id":"us-ky/krs-304.9-350","jurisdiction":"us-ky","citation":"KRS 304.9-350","heading":"Compensation of agent operating under a disclosure agreement --","body":"Requirements.\n(1) A consultant who is also licensed as an agent shall not, directly or indirectly, receive\nor share in both a fee and other compensation paid, directly or indirectly, fr om an\ninsured or any insurer with respect to any insurance or annuity contract procured,\nrenewed, continued, modified, terminated, or otherwise disposed of pursuant to any\nrecommendation given or transaction engaged in by the licensee under this license\nor any license issued under this code.\n(2) (a) If the licensee has received or is to receive any fee, commission, or\ncompensation from the insured or proposed insured, or from any other person\nother than the insurer, directly or indirectly, with respect to a ny insurance\ntransaction or proposed insurance transaction, or with respect to any insurance\nor annuity contract existing or proposed, it shall conclusively be presumed\nthat the licensee was acting as a consultant with respect to such transaction or\ncontract.\n(b) An individual or business entity dually licensed as a consultant and an agent\nshall not sell, solicit, or negotiate insurance, or otherwise act as an agent,\neither directly or indirectly, with respect to the insurance risk of the insured or\nprospective insured that was the subject of a written consulting contract\nrequired by subsection (4) of this section:\n1. During the term of the written consulting contract; or\n2. Within twelve (12) months after the expiration of the consulting\ncontract, but no less than twenty-four (24) months from the  inception\nof the contract.\n(c) An agent who has a financial or business ownership interest or affiliation with\nthe consultant acting as such pursuant to a written consulting contract required\nby subsection (4) of t his section shall not sell, solicit, or negotiate insurance,\neither directly or indirectly, with respect to the insurance risk of the insured or\nprospective insured that was the subject of a consulting contract:\n1. During the term of the written consulting contract; or\n2. Within twelve (12) months after the expiration of the consulting\ncontract, but no less than twenty-four (24) months from the  inception\nof the contract.\n(d) Consulting fees paid to a consultant pursuant to a written contract in\ncompliance with subsection (4) of this section may be shared between a\nbusiness entity licensed as a consultant and an individual who is licensed as a\nconsultant and is an owner, officer, partner, member, or employee of the\nbusiness entity.\n(3) No person licensed as a consultant under this section may receive any fee,\ncommission or thing of value for examining, appraising, reviewing or evaluating\nany insurance policy, bond, annuity or pension or profit -sharing contract, plan or\nprogram or for making recommendation or giving advice with regard to any of the\nabove, unless such compensation is based upon a prior written contract as provided\nin subsection (4) of this section.\n(4) Prior to the provision of consultant's services, a person licensed as a consultant\nunder this section shall disclose the following in a written contract signed by the\nparty to be charged:\n(a) The services to be provided by the consultant to the insured and prospective\ninsured;\n(b) The beginning and ending date of the agreement;\n(c) Any insurance to which the contract for consultant's services applies;\n(d) The arrangement for compensation of the consultant, whether by a flat rate,\nhourly rate, or otherwise;\n(e) Whether the consultant is dually licensed as an agent; and\n(f) Whether the  consultant has a financial or business ownership interest in or\naffiliation with, or controls in whole or in part, any business entity or insurer.\nA copy of every contract shall be retained by the consultant for not less than five (5)\nyears after expiration of the contract.\n(5) No person licensed as a consultant may receive any compensation, direct or indirect,\nas a result of:\n(a) The sale of insurance or annuities to; or\n(b) The use of securities or trusts in connection with pensions for any person to\nwhom any such licensee has performed any related consulting service for\nwhich he has received a fee or contracted to receive a fee within the preceding\ntwelve (12) months unless such compensation is provided for in the written\ncontract required by subsection (4) of this section.\n(6) No person licensed as an insurance consultant under this section may be an\nexecutive in, or employee of, or own stock which gives him a majority interest,\ndirect or indirect, in any authorized insurer. No consultant may recommend or\nencourage the purchase of insurance, annuities, or securities from any authorized\ninsurer in which any member of his immediate family holds an executive position or\nholds a majority interest.\n(7) A person dually licensed as a consultant and an agent sha ll not act as both a\nconsultant and an agent with regards to any risk which is the subject of a contract\nrequired by subsection (4) of this section.\n(8) Nothing in this section shall prohibit an agent who holds some form of formal\nfinancial planning certif ication or designation recognized in administrative\nregulation promulgated by the department from receiving a fee for services provided\nunder that certification or designation and from receiving a commission for the sale,\nsolicitation, or negotiation of life insurance or annuities if:\n(a) Prior to providing financial planning services, the agent discloses the\nfollowing in a written contract signed by the party to be charged:\n1. The financial planning services for which the fee is to be charged;\n2. The amount of the fee to be charged, including a description of how the\nfee will be determined or calculated; and\n3. That the party to be charged is under no obligation to purchase any\ninsurance product through the agent; and\n(b) Prior to the execution of the writt en agreement provided for in paragraph (a) of this\nsubsection, or solicitation of the sale of a product or service, the agent discloses\nthat:\n1. He or she is an agent; and\n2. A commission for the sale, solicitation, or negotiation of insurance will\nbe received in addition to a fee for financial planning, if applicable.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16929","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:40Z","sha256":"147590de3c1c1b82d6e436595d4bb5523f1a35eee12711d5723e600a04b7527c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.9-340","next":"us-ky/krs-304.9-360"},"notice":"GroundRules: Original legal text. Not legal advice."}