815 KAR 30:010. LP
gas license; financial responsibility required.
RELATES TO: KRS
234.120
STATUTORY AUTHORITY:
KRS 234.120(3)
NECESSITY, FUNCTION,
AND CONFORMITY: KRS 234.120 requires the Executive Director to promulgate
reasonable administrative regulations requiring proof of financial
responsibility. This administrative regulation is made to assure persons
injured by LP Gas dealers have some assets against which to recoup some of
their loss. This amendment is necessary to incorporate the 1994 legislative
changes set forth in KRS 234.120.
Section 1. Proof of
Financial Responsibility, Amount. (1) Prior to the issuance or renewal of a
license to engage in the LP gas business as required by KRS 234.120, the
applicant shall submit a certificate of insurance certifying that the applicant
has a valid commercial general liability insurance policy which includes
coverage for completed operations and for damages because of injuries to
persons, damage to their property and any other damage or loss resulting from
or arising out of the LP gas dealer's business, trade, products, services,
premises or operations in the minimum amount of $100,000 for licenses set forth
in KRS 234.120(1)(d), and $500,000 for licenses set forth in KRS 234.120(1)(b),
(c) and (e) and for the business license set forth in KRS 234.120(1)(a) in the
minimum amount of $1,000,000.
(2) The insurer
shall be an authorized insurer as defined by the Kentucky Department of
Insurance.
(3) The certificate
of insurance shall be executed by a Kentucky licensed agent as follows:
(a) Form LPG-1,
Certificate information.
LPG-1CERTIFICATE
OF INSURANCE
LP
GAS DEALERS
Policy Period:
Name of Insured:
Address:
Name of Insurer:
Address:
Name of Agent/Broker:
Address:
Policy Coverage:
Commercial General Liability, including products and completed operations for
LP Gas Dealer Business, in the following amounts: (Check one)
Aggregate minimum
limits per incident or occurrence:
__ $1,000,000__
$500,000__ $100,000
Type of Company: (Check
one)
Authorized/Admitted
Carrier__
The undersigned hereby
certifies that the above mentioned insurance protection has been issued in the
amounts indicated.
Signature: (KY Licensed
Agent)
(b) Alternate
certificate. In lieu of Form LPG-1, a standard company certificate of insurance
may be used; but, only if all the information listed on the State Fire
Marshal's Form LPG-1 is included.
(4) Failure to
maintain the required insurance shall void the license. (Recodified from 806
KAR 50:060, 7-5-78; Am. 15 Ky.R. 2300; eff. 7-7-89; 19 Ky.R. 825; eff. 11-9-92;
20 Ky.R. 1700; 2354; eff. 3-14-94; 21 Ky.R. 1792; eff. 3-6-95; TAm eff.
8-9-2007.)