806 KAR 13:100.
Motor vehicle comprehensive insurance rate discounts for antitheft devices.
RELATES TO: KRS
304.12-090-304.12-110, 304.13-051, 304.13-065, 304.14-100, 304.14-110,
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
Definitions. As used in this administrative regulation:
director" means the Executive Director of the Kentucky Office
"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.
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
(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.
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
(b) Policy number;
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.
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
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
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:
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
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.
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.)