Kentucky Statutes 304.9-410 – Exchange of business — Excess or rejected risks — Regulation of volume of business by commissioner
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(1) An agent with a line of authority for property, casualty, or limited line surety insurance may:
(a) Occasionally place an insurance coverage with an insurer as to which he or she is not then appointed as an agent, and such insurer may accept such business only when placed through an appointed agent of the insurer. Both agents involved in this exchange of business must be then licensed as to all of the kinds of insurance represented by the coverage; and
(b) Without limitation, place insurance coverage with an insurer as to which he or she is not then appointed as agent, and such insurer may accept such business only if placed through a licensed managing general agent.
(2) An agent with a line of authority for life or health insurance may, occasionally, place with another insurer as to which he or she is not appointed as agent, a particular risk or portion thereof which has been rejected by the insurers as to which the agent is appointed or is known to the agent to be unacceptable to such insurers, and without then being appointed as to the other insurer.
(3) The commissioner shall, by regulation, establish the amount or volume of business that constitutes the occasional placement of business permitted by subsections (1) and (2) of this section. Such regulations may be based on a percentage or ratio of the agent’s business or any other appropriate standard.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1072, effective July 15, 2010. — Amended 2002 Ky. Acts ch. 273, sec. 32, effective July 15, 2002. — Amended 1986
Ky. Acts ch. 307, sec. 5, effective July 15, 1986. — Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 41, effective June 18, 1970.
(a) Occasionally place an insurance coverage with an insurer as to which he or she is not then appointed as an agent, and such insurer may accept such business only when placed through an appointed agent of the insurer. Both agents involved in this exchange of business must be then licensed as to all of the kinds of insurance represented by the coverage; and
Terms Used In Kentucky Statutes 304.9-410
- agent: includes managing general agent unless the context requires otherwise. See Kentucky Statutes 304.9-085
- managing general agent: is a n individual or business entity appointed by an insurer to solicit applications from agents for insurance contracts or to negotiate insurance contracts on behalf of an insurer and, if authorized to do so by an insurer, to effectuate and countersign insurance contracts. See Kentucky Statutes 304.9-085
- Surety: means insurance or bond that covers obligation to pay the debts of, or answer for the default of another, including faithlessness in a position of public or private trust. See Kentucky Statutes 304.9-020
(b) Without limitation, place insurance coverage with an insurer as to which he or she is not then appointed as agent, and such insurer may accept such business only if placed through a licensed managing general agent.
(2) An agent with a line of authority for life or health insurance may, occasionally, place with another insurer as to which he or she is not appointed as agent, a particular risk or portion thereof which has been rejected by the insurers as to which the agent is appointed or is known to the agent to be unacceptable to such insurers, and without then being appointed as to the other insurer.
(3) The commissioner shall, by regulation, establish the amount or volume of business that constitutes the occasional placement of business permitted by subsections (1) and (2) of this section. Such regulations may be based on a percentage or ratio of the agent’s business or any other appropriate standard.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1072, effective July 15, 2010. — Amended 2002 Ky. Acts ch. 273, sec. 32, effective July 15, 2002. — Amended 1986
Ky. Acts ch. 307, sec. 5, effective July 15, 1986. — Created 1970 Ky. Acts ch. 301, subtit. 9, sec. 41, effective June 18, 1970.