Title 806 | Chapter 009 | Regulation 200
806 KAR 9:200.Volume of insurance agent exchange of business.
Section 1.
Definition. "Total premium" means all payments received from insureds or prospective insureds as consideration for insurance, including all taxes and surcharges imposed by Kentucky law.Section 2.
Volume of Insurance Agent Exchange of Business.(1)
An agent holding a license with the following lines of authority shall not place insurance with a premium of more than twenty (20) percent of the agent's total premium for the preceding calendar year with insurers for which the agent holds no appointment:(a)
Property;(b)
Casualty;(c)
Life; or(d)
Health.(2)
Insurance placed by an agent through the following shall not be considered in determining whether the agent has violated this Section:(a)
A residual market mechanism as defined in KRS 304.13-011(8);(b)
A surplus lines insurer pursuant to KRS Chapter 304.10; or(c)
A managing general agent as defined in KRS 304.9-085.Section 3.
Business Entity Licensees. For agents designated to act under a business entity agent license, the percentage limitations of Section 2 of this administrative regulation shall be measured by the total premium received by the business entity. Persons designated to act under a business entity agent license are subject to a single overall limit and shall not use their separate licenses to increase the volume of permissible exchange of business.Section 4.
Insurer Responsibility.(1)
An insurer may assume that agents not appointed by the insurer and submitting applications to the insurer have not exceeded the limitations of Section 2 of this administrative regulation.(2)
An insurer that knows or has reason to know an agent not appointed by the insurer has exceeded the limitations established by Section 2 of this administrative regulation shall not issue a policy based on an application submitted by the agent.Section 5.
Validity. An insurance policy issued in violation of this administrative regulation shall be valid and enforceable.HISTORY: (13 Ky.R. 2171; Am. 14 Ky.R. 212; eff. 8-5-1987; 27 Ky.R. 1337; 1804; eff. 1-15-2001; 32 Ky.R. 316; 880; eff. 12-2-20005; 46 Ky.R. 1870; eff. 1-3-2020.)
806 KAR 9:200.Volume of insurance agent exchange of business.
Section 1.
Definition. "Total premium" means all payments received from insureds or prospective insureds as consideration for insurance, including all taxes and surcharges imposed by Kentucky law.Section 2.
Volume of Insurance Agent Exchange of Business.(1)
An agent holding a license with the following lines of authority shall not place insurance with a premium of more than twenty (20) percent of the agent's total premium for the preceding calendar year with insurers for which the agent holds no appointment:(a)
Property;(b)
Casualty;(c)
Life; or(d)
Health.(2)
Insurance placed by an agent through the following shall not be considered in determining whether the agent has violated this Section:(a)
A residual market mechanism as defined in KRS 304.13-011(8);(b)
A surplus lines insurer pursuant to KRS Chapter 304.10; or(c)
A managing general agent as defined in KRS 304.9-085.Section 3.
Business Entity Licensees. For agents designated to act under a business entity agent license, the percentage limitations of Section 2 of this administrative regulation shall be measured by the total premium received by the business entity. Persons designated to act under a business entity agent license are subject to a single overall limit and shall not use their separate licenses to increase the volume of permissible exchange of business.Section 4.
Insurer Responsibility.(1)
An insurer may assume that agents not appointed by the insurer and submitting applications to the insurer have not exceeded the limitations of Section 2 of this administrative regulation.(2)
An insurer that knows or has reason to know an agent not appointed by the insurer has exceeded the limitations established by Section 2 of this administrative regulation shall not issue a policy based on an application submitted by the agent.Section 5.
Validity. An insurance policy issued in violation of this administrative regulation shall be valid and enforceable.HISTORY: (13 Ky.R. 2171; Am. 14 Ky.R. 212; eff. 8-5-1987; 27 Ky.R. 1337; 1804; eff. 1-15-2001; 32 Ky.R. 316; 880; eff. 12-2-20005; 46 Ky.R. 1870; eff. 1-3-2020.)