806 KAR 13:100. Motor vehicle comprehensive insurance rate discounts for antitheft devices

Link to law: http://www.lrc.ky.gov/kar/806/013/100.htm
Published: 2015

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      806 KAR 13:100.

Motor vehicle comprehensive insurance rate discounts for antitheft devices.



304.12-090-304.12-110, 304.13-051, 304.13-065, 304.14-100, 304.14-110,



KRS 304.2-110


AND CONFORMITY: KRS 304.2-110 provides that the Executive Director of

Insurance may make reasonable administrative regulations necessary for or as an

aid to the effectuation of any provision of the Kentucky Insurance Code. This

administrative regulation implements the provisions of KRS 304.20-400 to 304.20-405,

which requires insurers to grant discounts in motor vehicle comprehensive

insurance rates for those insureds using anti-theft devices which meet certain



      Section 1.

Definitions. As used in this administrative regulation:

      (1) “Executive

director" means the Executive Director of the Kentucky Office

of Insurance.


"Comprehensive insurance coverage" means a coverage under a motor

vehicle insurance policy which provides protection against loss or damage to a

motor vehicle except by collision or upset.

      (3) "Motor

vehicle" has the meaning set forth in KRS 304.39-020(7).


      Section 2. Scope.

(1) This administrative regulation applies to comprehensive insurance coverage

under all motor vehicle insurance policies issued or renewed after January 1,


      (2) The discounts

required by KRS 304.20-400 to 304.20-440 must be granted to both commercial and

private passenger risks.


      Section 3. Approval

of Antitheft Devices. All antitheft devices which meet the criteria of KRS

304.20-400 to 304.20-440 are approved for discounts as specified in KRS

304.20-400 to 304.20-440.


      Section 4. Rate

Filings. All insurers issuing or renewing motor vehicle comprehensive insurance

coverage in Kentucky after January 1, 1987, shall make a rate filing pursuant

to KRS Chapter 304.13 to reflect the discounts required by KRS 304.20-400 to

304.20-440. Such rate filings must be made by January 1, 1987.


      Section 5. Notice of

Availability of Motor Vehicle Comprehensive Insurance Rate Discounts. (1) All

insurers issuing or renewing motor vehicle comprehensive insurance coverage

after January 1, 1987, shall provide written notice to insureds or prospective

insureds of the right to apply for a discount for anti-theft devices. The

notice shall be in the form prescribed by the executive director.

The executive director shall issue a bulletin

establishing the effective date for use of the uniform notice form.

      (2) Notice to

prospective insureds shall be given no later than the time of the delivery of

the policy.

      (3) Notice to

existing insureds shall be given at the time of the first renewal following

January 1, 1987, and on subsequent renewals at the option of the insurer.


      Section 6.

Application Forms for Discounts. (1) All insurers issuing motor vehicle

comprehensive insurance coverage shall develop an application form for

discounts in comprehensive insurance coverage pursuant to KRS 304.20-400 to


      (2) Such forms shall

be available to insureds upon their request.

      (3) Such forms shall

be used pursuant to KRS 304.14-100(3), 304.14-110, and all other applicable

law. Insurers shall use such forms to determine whether insureds must be

granted discounts pursuant to KRS 304.20-400 to 304.20-440.

      (4) Insurers may

file such forms for approval pursuant to KRS 304.14-120 and 806 KAR 14:005.

Such forms shall contain or request at least the following information:

      (a) The name of the

named insured;

      (b) Policy number;

      (c) Vehicle

description (year, make, model, and vehicle identification number);

      (d) A description of

the anti-theft device;

      (e) Signature by the

insured as indication that the representations in the application are true; and

      (f) Any other

information desired by the insurer.


      Section 7.

Application for a Discount During a Policy Period. If an application for a

discount pursuant to KRS 304.20-400 to 304.20-440 is received while a policy is

in force and the discount is granted, the discount shall be prorated based on

the unexpired policy period and credited to the insured's premium at renewal in

addition to the discount for the next policy period. If the policy is not

renewed, the amount of the prorated discount shall be paid to the insured,

except that any such amount less than one (1) dollar need not be refunded.

      (1) At its option,

the insurer may:

      (a) Grant the full

discount rather than prorating it;

      (b) Make immediate

payment of the discount to the insured rather than crediting it to the next



      Section 8.

Anti-theft Devices Provided by Insurers. (1) Insurers may, at their option,

provide their insureds an anti-theft device as a service to reduce the risk of

loss. This means that insurers may provide an anti-theft device which is itself

a service (for example, a window identification system) or pay for the labor

expense of installation of an anti-theft device which is a mechanical device.

Pursuant to KRS 304.12-110(4), insurers cannot give an insured or prospective

insured any anti-theft device which is a mechanical device which is worth more

than one (1) dollar.

      (2) If an insurer

provides an anti-theft device to its insureds pursuant to subsection (1) of

this section and receives a properly completed application for a discount

pursuant to KRS 304.20-400 to 304.20-440, it may:

      (a) Withhold the

first year's discount to assist in paying for the anti-theft device; or

      (b) Grant the

discount in accordance with KRS 304.20-400 to 304.20-440 and this

administrative regulation.


      Section 9. Window

Identification Systems. In order to qualify for the fifteen (15) percent

discount established by KRS 304.20-420(5), a window identification system must

meet the following guidelines:

      (1) The

identification number used by a window identification system shall be the

vehicle identification number of the motor vehicle marked.

      (2) As used in KRS

304.20-420(5), "small vent window" means a window which may be opened

to ventilate the passenger compartment of a motor vehicle. If a small window in

a motor vehicle cannot be opened, it must be marked.

      (3) Insurers shall

accept the uniform vehicle identification verification form prescribed by the

Kentucky State Police as an application for a discount for a window

identification system, if such form is approved by the executive



      Section 10.

Severability; Effective Date. (1) If any provision of this administrative

regulation or the application thereof to any person or circumstance is for any

reason held to be invalid, the remainder of this administrative regulation and

the application of such provision to other persons or circumstances shall not

be affected thereby.

      (2) This

administrative regulation shall become effective upon completion of its review

pursuant to KRS Chapter 13A.

      (3) As a courtesy to

the Legislative Research Commission, the Office of Insurance states that this

administrative regulation is intended to be permanent. (13 Ky.R. 1205; Am.

1445; eff. 2-10-87; 1758; 2014; eff. 6-9-87; TAm eff. 8-9-2007.)