Kentucky Statutes 304.36-100 – Duties and powers of the commissioner
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(1) The commissioner shall:
(a) Notify the association of the existence of an insolvent insurer not later than three (3) days after he or she receives notice of the determination of the insolvency; and
(b) Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.
(2) The commissioner may:
(a) Require that the association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this subtitle. Such notification shall be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation shall be sufficient;
(b) Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a fine on any member insurer which fails to pay an assessment when due. Such fine shall not exceed five percent (5%) of the unpaid assessment per month, except that no fine shall be less than one hundred dollars ($100) per month; and
(c) Revoke the designation of any servicing facility if the commissioner finds claims are being handled unsatisfactorily.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1468, effective July 15, 2010. — Created
1972 Ky. Acts ch. 137, sec. 10, effective June 16, 1972.
(a) Notify the association of the existence of an insolvent insurer not later than three (3) days after he or she receives notice of the determination of the insolvency; and
Terms Used In Kentucky Statutes 304.36-100
- Association: means the Kentucky Insurance Guaranty Association created under
KRS §. See Kentucky Statutes 304.36-050 - Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
- Insolvent insurer: means an insurer:
(a) That was a member insurer at the time the policy was issued. See Kentucky Statutes 304.36-050 - Member insurer: means any person who:
1. See Kentucky Statutes 304.36-050 - Month: means calendar month. See Kentucky Statutes 446.010
- Net direct written premiums: means direct gross premiums written, or in the case of an insurer organized under KRS Chapter 299, assessments, membership fees, and policy fees levied and collected, in this state, less returns thereon and dividends paid or credited to policyholders on such direct business. See Kentucky Statutes 304.36-050
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(b) Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.
(2) The commissioner may:
(a) Require that the association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this subtitle. Such notification shall be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation shall be sufficient;
(b) Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a fine on any member insurer which fails to pay an assessment when due. Such fine shall not exceed five percent (5%) of the unpaid assessment per month, except that no fine shall be less than one hundred dollars ($100) per month; and
(c) Revoke the designation of any servicing facility if the commissioner finds claims are being handled unsatisfactorily.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1468, effective July 15, 2010. — Created
1972 Ky. Acts ch. 137, sec. 10, effective June 16, 1972.