806 KAR 10:050. Surplus lines
RELATES TO: KRS 304.1-070, 304.10-030,
304.10-040, 304.10-050, 304.10-060, 304.10-070, 304.10-160
STATUTORY AUTHORITY: KRS 304.2-110,
304.10-050, 304.10-210, EO 2009-535
NECESSITY, FUNCTION, AND CONFORMITY: EO
2009-535, signed June 12, 2009, created the Department of Insurance, headed by
the Commissioner of Insurance. KRS 304.2-110 authorizes the executive director
to promulgate administrative regulations necessary for or as an aid to the
effectuation of the Kentucky Insurance Code, as defined in KRS 304.1-010. KRS
304.10-050 requires the executive director to promulgate administrative
regulations prescribing the affidavit form and the manner and form of filing
the surplus lines broker affidavit of eligibility for export. KRS 304.10-210 requires
the executive director to promulgate administrative regulations to effectuate
the surplus lines law. This administrative regulation established the manner
and form for surplus line brokers to furnish to the Department of Insurance
evidence of eligibility for export required by KRS 304.10-050.
Section 1. Definitions. (1) "Alien
insurer" is defined in KRS 304.1-070(3).
(2) "Broker" or "surplus
lines broker" is defined in KRS 304.10-030(1).
(3) "Department" means the Department
(4) "Export" is defined in KRS
(5) "Foreign insurer" is
defined in KRS 304.1-070(2).
Section 2. Time Period for Filing. An affidavit of
eligibility for export shall be filed by the licensed surplus line broker with
the Department of Insurance within sixty (60) days after the effective date of each
premium bearing surplus lines transaction with a foreign insurer. The affidavit
shall be filed within ninety (90) days after the effective date of each premium
bearing surplus lines transaction with an alien insurer.
Section 3. Method of Filing. (1) A
surplus lines affidavit shall be filed electronically through:
(a) The Department of Insurance Web site,
(b) File Transfer Protocol through prior
arrangement with the Department of Insurance.
(2) The broker shall maintain records of
each transaction, including evidence of efforts to place insurance with
insurers authorized to transact and actually writing insurance in this state,
which shall be subject to examination by the Department of Insurance pursuant
to KRS 304.10-160.
Section 4. Effective Date. This
administrative regulation shall apply to affidavits submitted on and after July
1, 2010. (31 Ky.R. 513; Am. 706; eff. 11-5-2004; 36 Ky.R. 473, 796; eff. 11-6-2009.)