{"data":{"id":"us-ky/krs-304.9-440","jurisdiction":"us-ky","citation":"KRS 304.9-440","heading":"Probation, suspension, revocation, and refusal of license -- Grounds --","body":"Penalty.\n(1) The commissioner may place on probation, suspend, or may impose conditions\nupon the continuance of a license for not more than twenty -four (24) months,\nrevoke, or refuse to issue or renew any license issued under this subtitle or any\nsurplus lines broker, life settlement broker, or life settlement provider license, or\nmay levy a civil penalty in accordance with KRS 304.99 -020, or any combination\nof actions for any one (1) or more of the following causes:\n(a) Providing incorrect, misleading, incomplete, or materially untrue information\nin a license application;\n(b) Violating any insurance laws, or violating any administrative regulations,\nsubpoena, or orde r of the commissioner or of another state's insurance\ncommissioner;\n(c) Obtaining or attempting to obtain a license through misrepresentation or\nfraud;\n(d) Improperly withholding, misappropriating, or converting any moneys or\nproperties received in the cou rse of doing insurance or the business of life\nsettlements;\n(e) Intentionally misrepresenting the terms of an actual or proposed insurance\ncontract, life settlement contract, or application for insurance;\n(f) Having been convicted of or having pled guilty or nolo contendere to any\nfelony;\n(g) Having admitted or been found to have committed any unfair insurance trade\npractice, insurance fraud, or fraudulent life settlement act;\n(h) Using fraudulent, coercive, or dishonest practices; or demonstrating\nincompetence, untrustworthiness, or financial irresponsibility; or being a\nsource of injury or loss to the public in the conduct of business in this state or\nelsewhere;\n(i) Having an insurance license, life settlement license, or its equivalent, denied,\nsuspended, or revoked in any other state, province, district, or territory;\n(j) Surrendering or otherwise terminating any license issued by this state or by\nany other jurisdiction, under threat of disciplinary action, denial, or refusal of\nthe issuance of or renewal of any other license issued by this state or by any\nother jurisdiction; or revocation or suspension of any other license held by the\nlicensee issued by this state or by any other jurisdiction;\n(k) Forging another's name to an application for insurance, to any other document\nrelated to an insurance transaction, or to any doc ument related to the business\nof life settlements;\n(l) Cheating, including improperly using notes or any other reference material to\ncomplete an examination for license;\n(m) Knowingly accepting insurance or life settlement business from an individual\nor bu siness entity who is not licensed, but who is required to be licensed\nunder this subtitle;\n(n) Failing to comply with an administrative or court order imposing a child\nsupport obligation;\n(o) Failing to pay state income tax or to comply with any administra tive or court\norder directing payment of state income tax;\n(p) Having been convicted of a misdemeanor for which restitution is ordered in\nexcess of three hundred dollars ($300), or of any misdemeanor involving\ndishonesty, breach of trust, or moral turpitude;\n(q) No longer meeting the requirements for initial licensure;\n(r) If a life settlement provider, demonstrating a pattern of unreasonable\npayments to owners or failing to honor contractual obligations set out in a life\nsettlement contract;\n(s) Entering into any life settlement contract or using any form that has not been\napproved pursuant to Subtitle 15 of this chapter;\n(t) If a licensee, having assigned, transferred, or pledged a policy subject to a life\nsettlement contract to a person other than a life settlement provider licensed in\nthis state, an accredited investor or qualified institutional buyer as defined,\nrespectively, in Regulation D, Rule 501 or Rule 144a of the Federal Securities\nAct of 1933, as amended, a financing entity, a special purpose en tity, or a\nrelated provider trust; or\n(u) Any other cause for which issuance of the license could have been refused,\nhad it then existed and been known to the commissioner.\n(2) (a) For any public adjuster or apprentice adjuster supervised by a public adjus ter\nunder KRS 304.9 -432, the commissioner shall deny, suspend, or revoke the\nadjuster's or apprentice adjuster's license or impose a fine not to exceed five\nthousand dollars ($5,000) per act, or both, for any of the following causes:\n1. Violating any provision of this chapter;\n2. Violating any administrative regulation or order of the commissioner;\n3. Receiving payment or anything of value as a result of an unfair or\ndeceptive practice;\n4. Receiving or accepting any fee, kickback, or other thing of value\npursuant to any agreement or understanding, oral or otherwise, from\nanyone other than an insured;\n5. Entering into a split -fee arrangement with another person who is not a\npublic adjuster; or\n6. Being otherwise paid or accepting payment for public adjuster s ervices\nthat have not been performed.\n(b) The sanctions and penalties under this subsection shall be in addition to any\nother remedies, penalties, or sanctions available to the commissioner against a\npublic adjuster or an apprentice adjuster  supervised by a public adjuster under\nKRS 304.9-432 under this section or any other law.\n(3) The license of a business entity may be suspended, revoked, or refused for any\ncause relating to an individual designated in or registered under the license if the\ncommissioner finds that:\n(a) An individual licensee's violation was known or should have been known by\none (1) or more of the partners, officers, or managers acting on behalf of the\nbusiness entity; and\n(b) The violation was not reported to the department nor corrective action taken.\n(4) (a) The license of a pharmacy benefit manager may, in the discretion of the\ncommissioner, be suspended, revoked, or refused for any cause enumerated in\nsubsection (1) of this section, and for violations of KRS 205.647, 304.9 -053,\n304.9-054, 304.9-055, and 304.17A-162.\n(b) The pharmacy benefit manager shall also be subject to the same civil penalties\nunder KRS 304.99-020 as an insurer.\n(5) The applicant or licensee may make written request for a hearing in accordance\nwith KRS 304.2-310.\n(6) The commissioner shall retain the authority to enforce the provisions and penalties\nof this chapter against any individual or business entity who is unde r investigation\nfor or charged with a violation of this chapter, even if the individual's or business\nentity's license has been surrendered or has lapsed by operation of law.\n(7) The commissioner may suspend, revoke, or refuse to renew the license of a licensed\ninsurance agent operating as a life settlement broker, pursuant to KRS 304.15 -700,\nif the commissioner finds that such insurance agent has violated the provisions of\nKRS 304.15-700 to 304.15-725.\n(8) If the commissioner denies a license application o r suspends, revokes, or refuses to\nrenew the license of a life settlement provider or life settlement broker, or suspends,\nrevokes, or refuses to renew the license of a licensed life insurance agent operating\nas a life settlement broker pursuant to KRS 304 .15-700, the commissioner shall\ncomply with the provisions of this section and KRS Chapter 13B.\n(9) The sanctions and penalties applicable to licenses and licensees under subsection\n(1) of this section shall also be applicable to registrations and registrants under KRS\n304.52-030(3).","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57846","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:40Z","sha256":"3f35c88eff01161b62de8558407136069f7da8b6ad4442b008035707e657b340","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.9-436","next":"us-ky/krs-304.9-450"},"notice":"GroundRules: Original legal text. Not legal advice."}