{"data":{"id":"us-ky/krs-304.99-152","jurisdiction":"us-ky","citation":"KRS 304.99-152","heading":"Penalties for violation of various provisions of Subtitle 37.","body":"(1) Any insurer failing, without just cause, to file any registration statement as required\nby Subtitle 37 of this chapter, shall be required, after notice and hearing, to pay a\ncivil penalty of ten thousand dollars ($10,000) for each day's delay to the\ncommissioner. The maximum civil penalty under this section shall be one hundred\nthousand dollars ($100,000). The commissioner may reduce the civil penalty if the\ninsurer demonstrates to the commissioner that the imposition of the penalty would\nconstitute a financial hardship to the insurer.\n(2) Every director or officer of an insurance holding company system who knowingly\nviolates, participates in, assents to, or who knowingly permits any of the officers or\nagents of the insurer to engage in transactions or make investments which have not\nbeen properly reported or submitted pursuant to KRS 304.37 -020(2), 304.37 -\n030(2), or 304.37 -030(5), or which violate Subtitle 37 of this chapter, shall pay, in\ntheir individual capacities, a civil penalty of not more than five th ousand dollars\n($5,000) per violation, after notice and hearing before the commissioner. In\ndetermining the amount of the civil penalty, the commissioner shall take into\naccount the appropriateness of the civil penalty with respect to the gravity of the\nviolation, the history of previous violations, and other matters justice may require.\n(3) If it appears that any insurer subject to Subtitle 37 of this chapter, or any director,\nofficer, employee, or agent has engaged in any transaction or entered into any\ncontract which is subject to KRS 304.37 -030 and which would not have been\napproved had approval been requested, the commissioner may order the insurer to\ncease and desist immediately any further activity under that transaction or contract.\nAfter notice and hearing, the commissioner may also order the insurer to void the\ncontracts and restore the status quo if the action is in the best interest of the\npolicyholders, creditors, or the public.\n(4) If it appears that any insurer or any director, officer, employe e, or agent has\ncommitted a willful violation of Subtitle 37 of this chapter, the commissioner may\ncause criminal proceedings to be instituted in the Circuit Court for the county in\nwhich the principal office of the insurer is located, or if the insurer ha s no office in\nKentucky, in the Franklin Circuit Court against the insurer or the responsible\ndirector, officer, employee, or agent. Any insurer which willfully violates Subtitle\n37 of this chapter, may be fined not more than one hundred thousand dollars\n($100,000). Any individual who willfully violates Subtitle 37 of this chapter, may\nbe fined in his or her individual capacity not more than one thousand dollars\n($1,000), be imprisoned for not more than one (1) to three (3) years, or both.\n(5) Any officer, director, or employee of an insurance holding company system who\nwillfully and knowingly subscribes to or makes or causes to be made any false\nstatements or false reports or false filings with the intent to deceive the\ncommissioner in the performance of hi s or her duties under Subtitle 37 of this\nchapter, upon conviction, shall be imprisoned for not more than one (1) year or\nmore than five (5) years, or fined ten thousand dollars ($10,000), or both. Any fines\nimposed shall be paid by the officer, director, or employee in his or her individual\ncapacity.\n(6) If it appears to the commissioner that any person has committed a violation of KRS\n304.37-120 which prevents the full understanding of the enterprise risk to the\ninsurer by affiliates or by the insurance h olding company system, the violation may\nserve as an independent basis for disapproving dividends or distributions and for\nplacing the insurer under an order of supervision in accordance with Subtitle 33 of\nthis chapter.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52908","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:01Z","sha256":"503ec08fdec08dae4de16ee619eeab3aadf42b66d074b865995b0dec4371791c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.99-151","next":"us-ky/krs-304.99-154"},"notice":"GroundRules: Original legal text. Not legal advice."}