806 KAR 9:070. Examinations

 

      RELATES

TO: KRS 304.1-050, 304.1-110(2), 304.4-010, 304.9-030(2), 304.9-105, 304.9-160,

304.9-190, 304.9-230, 304.9-320, 304.9-430, 304.9-505(5)(e), 304.15-700

      STATUTORY

AUTHORITY: KRS 304.2-110(1), 304.9-160(1), 304.9-230(2), 304.15-700(2)(a),

304.15-720

      NECESSITY,

FUNCTION, AND CONFORMITY: KRS 304.2-110(1) authorizes the Commissioner of

Insurance to promulgate administrative regulations necessary for, or as an aid

to the effectuation of, any provision of the Kentucky Insurance Code, as

defined in KRS 304.1-010. KRS 304.9-160(1) requires the commissioner to

promulgate administrative regulations to develop and conduct examinations

required by Subtitle 9 of the Kentucky Insurance Code. KRS 304.9-230(2)

requires the commissioner to promulgate administrative regulations regarding

examinations for limited lines of authority. KRS 304.15-700(2)(a) requires the

commissioner to promulgate administrative regulations regarding the required

training and examination for life settlement brokers, and KRS 304.15-720 authorizes

the commissioner to promulgate regulations to implement KRS 304.15-700 through

304.15-720. This administrative regulation sets forth the timeframe during

which an applicant for an agent's, life settlement broker's, consultant's,

independent adjuster's, staff adjuster's, or public adjuster's license may take

the appropriate examination required by the Kentucky Insurance Code, as defined

in KRS 304.1-010, establishes the minimum score for successful completion of a

written licensing examination, and establishes the period for which examination

scores are valid.

 

      Section

1. Definitions. (1) "Commissioner" is defined by KRS 304.1-050(1).

      (2)

"Department" is defined by KRS 304.1-050(2).

      (3)

"Examination" means a written examination required to license an

applicant in accordance with KRS Chapter 304 for an independent adjuster, staff

adjuster, public adjuster, agent, consultant, or life settlement broker

license.

      (4)

"License" is defined by KRS 304.1-110(2).

 

      Section

2. A completed "NAIC Individual Insurance Producer License

Application", incorporated by reference in 806 KAR 9:340, for the

examination and documentation demonstrating successful completion of any

required prelicensing training shall be filed with the commissioner by, or on

behalf of, the applicant, prior to the date scheduled for the examination. The

application shall be accompanied by fees specified in KRS 304.4-010 and 806 KAR

4:010.

 

      Section

3. Every applicant for a license who is required to take an examination shall

answer correctly seventy (70) percent of the questions to successfully pass the

examination.

 

      Section

4. Applicable fees, as set out in KRS 304.4-010 and 806 KAR 4:010, Section

1(15), shall be submitted with the request to retake the examination. The

request shall be made on an "Examination Retake Form", incorporated

by reference in 806 KAR 9:340.

 

      Section

5. An individual applying for a line of authority identified in KRS

304.9-030(2) shall successfully complete examinations as follows:

      (1)

For life line of authority, a life examination;

      (2)

For health line of authority, a health examination;

      (3)

For property line of authority, a property examination;

      (4)

For casualty line of authority, a casualty examination;

      (5)

For personal lines, a property and casualty personal lines examination;

      (6)

For a line of authority identified in accordance with KRS 304.9-030(2)(h), an

examination appropriate for the kind of insurance; and

      (7)

For variable life and variable annuity products, no examination is required.

 

      Section

6. (1) The provisions of this administrative regulation shall apply to every

individual resident applicant for a limited line of authority identified in KRS

304.9-230(1).

      (2)

An individual applying for limited lines of authority as identified in KRS

304.9-230 shall successfully complete examinations as follows:

      (a)

For surety limited line of authority, a surety examination;

      (b)

For travel limited line of authority, a travel examination;

      (c)

For crop limited line of authority, a crop examination;

      (d)

For credit limited line of authority, an examination shall not be required; and

      (e)

For rental vehicle limited line of authority, a rental vehicle examination

shall be administered or monitored by the rental vehicle agent.

 

      Section

7. An individual applying for a life settlement broker license shall

successfully complete a life settlement examination unless exempt from

examination pursuant to KRS 304.15-700(2)(b).

The

examination shall be given by the commissioner or in accordance with provisions

of an agreement the commissioner executes with another state.

 

      Section

8. (1) An individual applying for a line of authority identified in KRS

304.9-430(7) or (8) shall:

      (a)

For property and casualty line of authority, successfully complete a property

and casualty adjuster examination;

      (b)

For workers’ compensation line of authority, successfully complete a workers’

compensation adjuster examination; and

      (c)

For crop line of authority, successfully complete a crop adjuster examination.

      (2)

In lieu of successfully completing the crop adjuster examination required by

subsection (1)(c) of this section, an individual applying for a crop line of

authority may demonstrate certification through the Crop Adjuster Proficiency

Program, by providing to the department a copy of a Crop Adjuster Proficiency

Program certification identification card with an active status issued by the

federal Risk Management Agency, an agency within the U.S. Department of Agriculture,

which specifies the applicant has passed a proficiency examination to adjust

multi-peril crop claims.

 

      Section

9. (1) If an applicant who applies to take the examinations required by KRS

Chapter 304 does not take an examination or fails to pass an examination within

120 days of the filing the application, the application shall become invalid, unless

the commissioner grants an extension for good cause shown. The applicant may

file a new application at any time following the expiration of the 120 day

period, and an examination may be taken when scheduled by the department in the

regular course of business.

      (2)

In determining good cause, the commissioner shall consider whether the delay to

take the examination or the failure to pass the examination within the time

period specified in subsection (1) of this section was due to extenuating

circumstances beyond the applicant's control.

 

      Section 10. Examination

results are valid for one (1) year from the date the examination is taken.

Application for additional lines of authority or licenses issued as a result of

the same examination shall be received by the commissioner within the same one

(1) year period. After this period, the applicant shall be retested. (37 Ky.R.

972; eff. 11-5-2010; 38 Ky.R. 839; eff. 1-6-12.)