806 KAR 39:070. Proof of motor vehicle insurance

Link to law: http://www.lrc.ky.gov/kar/806/039/070.htm
Published: 2015

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      806 KAR 39:070. Proof of motor vehicle

insurance.

 

      RELATES

TO: KRS 186.021(3), 186A.040, 186A.042, 186A.095, 304.39-080, 304.39-083,

304.39-085, 304.39-087, 304.39-090, 304.39-117

      STATUTORY

AUTHORITY: KRS 186.021(3), 304.2-110(1), 304.39-117(1), 304.39-300

      NECESSITY,

FUNCTION, AND CONFORMITY: KRS 186.021(3)

requires the commissioner of the Department of Insurance to promulgate an

administrative regulation to establish the manner for presenting proof of motor

vehicle insurance to a county clerk. KRS 304.2-110(1) and 304.39-300 authorize

the commissioner to promulgate administrative regulations necessary for or as

an aid to enforce the insurance code. KRS 304.39-117(1) requires the Department

of Insurance to promulgate an administrative regulation that establishes the

requirements for the proof of insurance that an insurer shall give to an

insured. This administrative regulation establishes the requirements for the

proof of insurance; the methods for reporting coverage provided for personal

motor vehicles insured on a personal lines motor vehicle policy; the methods

for presenting proof of motor vehicle insurance to a county clerk or peace

officer; and the requirements for notifying the Department of Vehicle Regulation

if a binder, contract, or commercial policy of motor vehicle insurance is

cancelled or not renewed.

 

      Section

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

      (2)

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

      (3)

"Insurer" means an insurer under KRS 304.1-040.

      (4)

"Motor vehicle insurance policy" means an insurance contract that

provides security covering a motor vehicle required to be registered pursuant

to KRS 186.020 and insured pursuant to KRS 186.021 and 304.39-080.

      (5)

"Person" is defined by KRS 304.1-020.

      (6)

"Personal lines motor vehicle policy" means an insurance policy,

issued by an insurance carrier authorized to do business in the Commonwealth of

Kentucky, which insures a personal motor vehicle.

      (7)

"VIN" means the vehicle identification number of a motor vehicle.

 

      Section

2. Proof of Insurance to be Provided by Insurers. (1) The proof of insurance required

by KRS 304.39-117 shall be provided to the insured when a policy is issued, renewed,

or amended to include a vehicle. An insurer electing to provide proof of insurance

in an electronic format shall provide a printed proof of insurance unless the

insured requests to receive proof of insurance in electronic format.

      (2)

Printed proof of insurance card.

      (a)

Two (2) copies of the printed proof of insurance card shall be provided for

each motor vehicle insured under a motor vehicle insurance policy.

      (b)

Size and format of the printed proof of insurance card.

      1.

The printed proof of insurance card shall be:

      a.

A two and one-fourth (2 1/4) inch by three and one-half (3 1/2) inch card;

      b.

A two and one-fourth (2 1/4) inch by seven (7) inch card with a vertical fold

resulting in a two and one-fourth (2 1/4) inch by three and one-half (3 1/2)

inch card;

      c.

A four and one-half (4 1/2) inch by three and one-half (3 1/2) inch card with a

horizontal fold resulting in a two and one-fourth (2 1/4) inch by three and

one-half (3 1/2) inch card; or

      d.

A substantially similar size to the dimensions established in clauses a.

through c. of this subparagraph.

      2.

The printed insurance card shall be on white paper with black or blue ink.

      (3)

Proof of insurance in an electronic format.

      (a)

Proof of insurance in an electronic format shall be downloaded from or transmitted

by the insurer or agent to the insured.

      (b)

Proof of insurance in an electronic format shall not include a photographic

copy of a paper insurance card on a portable electronic device.

      (4)

Mandatory contents of the proof of insurance. In either paper or electronic

format, the proof of insurance shall prominently display the following

information, in the order listed:

      (a)

Title: "COMMONWEALTH OF KENTUCKY PROOF OF INSURANCE";

      (b)

The name of the insurance company and its five (5) digit code number assigned

by the National Association of Insurance Commissioners (NAIC), or the name of

the Self-Insured Group and the group ID number provided by the department;

      (c)

The name of the named insured;

      (d)

The effective date and expiration date of coverage. If the policy is amended to

add an identified vehicle midterm, the effective date on the card shall be the

effective date of the amendment;

      (e)

The policy number;

      (f)

The type of policy:

      1.

If the policy is a personal lines motor vehicle policy for which premium is

reported on the NAIC Annual Statement line 19.1 or 19.2, the insurer shall indicate

the policy type as "Personal" or "PL"; or

      2.

If the policy is a commercial lines motor vehicle policy for which premium is

reported on the NAIC Annual Statement line 19.3 or 19.4, the insurer shall

indicate the policy type as "Commercial" or "CL"; and

      (g)

The vehicle or vehicles insured:

      1.

If the type of policy is personal lines (PL), the year, make, model, and VIN of

each motor vehicle; or

      2.

If the type of policy is commercial lines (CL), and:

      a.

If the insurance contract covers four (4) or fewer vehicles, the year, make,

model and VIN of each motor vehicle; or

      b.

If the insurance contract covers five (5) or more motor vehicles, it may state

"Fleet" or the insurer may elect to include the year, make, model,

and the VIN of each motor vehicle.

      (5)

Other information to be provided to the insured. The insurer shall:

      (a)

Include the following information on the proof of insurance if the information

required by subsection (4) of this section is not obscured:

      1.

The insurer's logo;

      2.

A statement that establishes the procedure for contacting the insurer

concerning a claim; and

      3.

The insurer's address; or

      (b)

Include the information listed in paragraph (a) of this subsection on a

separate document or electronic image provided with the proof of insurance.

      (6)

An insurer shall furnish with the proof of insurance the following information:

      (a)

Instructions that the insured shall keep a copy of the proof of insurance in

each motor vehicle covered by the policy at all times;

      (b)

Information as to whether or not the policy is a personal lines motor vehicle

policy and whether or not the vehicle has been reported as an insured personal

motor vehicle;

      1.

If so, the insured shall be informed that:

      a.

The proof of coverage information has been reported electronically to the

Department of Vehicle Regulation; and

      b.

If the VIN does not appear in the database, the insured may be required to

present proof of insurance to the county clerk for issuance of a replacement

plate, decal, or registration certificate or renewal as alternative evidence of

proof of coverage; or

      2.

If not, the insured shall be instructed to present proof of insurance to the

county clerk for issuance of a replacement plate, decal, or registration

certificate or renewal as evidence of proof of coverage; and

      (c)

Instructions to compare the VIN appearing on the registration, insurance policy

and proof of insurance to the VIN affixed to the vehicle.

      1.

If the VIN on the motor vehicle title and registration and the VIN on the motor

vehicle do not match, the policyholder shall contact the county clerk to have

the title and registration corrected.

      2.

If the VIN on the proof of insurance and the motor vehicle do not match, the

policyholder shall contact the insurer to have the insurance policy and card

corrected. The insurer shall provide the name, address, and telephone number of

an insurer representative to contact concerning a discrepancy. The telephone

number shall be:

      a.

The phone number of a local agent of the insurer; or

      b.

A toll-free telephone number of the insurer.

 

      Section

3. Methods of Proving Motor Vehicle Insurance. One (1) of the following methods

shall be used to prove that motor vehicle insurance is in effect when

registering a motor vehicle:

      (1)

The VIN appears as an insured motor vehicle in the Department of Vehicle

Regulation’s database;

      (2)

Proof of current insurance in paper or electronic format:

      (a)

If the database does not list the VIN of a vehicle insured on a personal lines

motor vehicle (PL) policy, the proof of coverage shall indicate the proof was

effective no more than forty-five (45) days prior to submission to the county

clerk; and

      (b)

The county clerk may require the proof of coverage to be sent directly to the

clerk by the agent or company;

      (3)

A certificate of insurance issued by an insurance agent

with a casualty line of authority licensed by Kentucky;

      (4)

An insurance contract with a declaration page attached showing that the policy

is in effect when the motor vehicle is being registered or transferred;

      (5)

A letter from the Kentucky Automobile Insurance Plan serving as prima facie

evidence of insurance in force;

      (6)

If the owner of the motor vehicle is serving in the armed forces outside

Kentucky, an affidavit by the provost marshal of the base where the person is

stationed stating that the motor vehicle is covered by an automobile liability

insurance policy; or

      (7)

A letter from the Kentucky Department of Insurance serving as prima facie

evidence of self-insurance pursuant to KRS 304.39-080(7).

 

      Section

4. Beginning January 1, 2006, and each month thereafter, an insurer shall

submit information on each vehicle covered by a personal lines motor vehicle

policy according to the rules contained in Section 2.1 of the Kentucky Automobile

Liability Insurance Reporting Guide.

 

      Section

5. For motor vehicles insured under a commercial lines or fleet policy, each

insurer shall report cancellations pursuant to Part 2.2 of the Kentucky

Automobile Liability Insurance Reporting Guide.

 

      Section

6. An insurance agent shall submit to the Department of Vehicle Regulation a

completed Form TC96-30 if the purchaser of a binder or temporary insurance

contract cancels the binder or contract before the agent has submitted the

application to the insurance company.

 

      Section

7. Incorporation by Reference. (1) The following material is incorporated by

reference:

      (a)

"Kentucky Automobile Liability Insurance Reporting Guide",

Transportation Cabinet, Department of Vehicle Regulation (Version 1.6,

8/15/2005 edition); and

      (b)

"Form No. TC 96-30, Motor Vehicle Insurance Agent Insurance Binder

Cancellation Form (5/05 edition)", Kentucky Transportation Cabinet,

Department of Motor Vehicle Regulation.

      (2)

This material may be inspected, copied, or obtained, subject to applicable

copyright law, at the Department of Vehicle Regulation, P. O. Box 2014, 200

Mero Street, Frankfort, Kentucky 40622, Monday through Friday, 8 a.m. to 4:30

p.m. The material may also be obtained at the Transportation Cabinet Web site: http://transportation.ky.gov/mvl/home.htm. The

material may also be obtained at the Department of Insurance Web site: http://insurance.ky.gov. (11 Ky.R. 685; Am.

975; eff. 11-13-84; 1661; 12 Ky.R. 19; 125; eff. 7-9-85; 14 Ky.R. 2063; 15

Ky.R. 15; eff. 7-1-88; 24 Ky.R. 764; 1264; eff. 12-15-97; 32 Ky.R. 362; 695;

888; eff. 12-2-2005; 40 Ky.R. 1141; 1723; 2132; eff. 4-4-2014.)