806 KAR 9:110.
Agent's rights after contract termination.
RELATES TO: KRS
AND CONFORMITY: KRS 304.2-110 provides that the Executive Director of the
Office of Insurance may make reasonable rules and administrative regulations
necessary for or as an aid to the effectuation of any provision of the Kentucky
Insurance Code. This administrative regulation sets forth the rights of
property or a casualty agent who is an independent contractor after termination
of an agency contract.
Section 1. No agency
contract with a property or casualty agent who is an independent contractor
agent compensated on a commission basis shall, except as provided in Section 2
of this administrative regulation, infringe upon the right of the agent, while
licensed, to service run-off business after termination of the agency contract;
nor shall it contain any provision which prevents the agent from being licensed
with another insurer in order to avoid policy lapses which would otherwise
occur after such termination.
Section 2. Nothing
herein in intended to infringe upon a company's contract with an agent or
agency which provides that ownership of renewals and records, manuals,
documents, and right of renewals is the property of the company and is to be
returned to the company upon cancellation and/or termination of the contract.
(I-9.15; 1 Ky.R. 862; eff. 5-14-75; TAm eff. 8-9-2007.)