26RS SB 118

Senate Bill 118

Actions

Last Action	01/23/26: to Committee on Committees (S)
Title	AN ACT relating to credit personal property insurance.
Bill Documents	Introduced
Bill Request Number	1660
Sponsor	B. Storm
Summary of Original Version	Create new sections of Subtitle 19 of KRS Chapter 304 to establish regulatory requirements relating to credit personal property insurance; define terms; establish exemptions from the regulatory requirements; establish limits on the amount and term of credit personal property insurance sold in conjunction with a closed-end credit transaction; require credit personal property insurance to cover a substantial risk of loss of, or damage to, the collateral pledged or secured in the credit transaction; prohibit an insurer from requiring bundling of other credit insurance coverages and from using gross debt in determining premiums; require a creditor to deliver, or cause to be delivered, a policy, certificate, memorandum or other disclosure disclosing the costs and coverage within 30 days after the date of the loan; require policies, certificates, plans, contracts, applications, enrollment forms, and schedules of premiums rates to be filed with the commissioner of the Department of Insurance; establish requirements for the refund of unearned premiums upon cancellation prior to the scheduled maturity date; establish requirements relating to the reporting and payment of claims; provide that a person aggrieved by a decision of the commissioner may request an administrative hearing; provide that a violation by an insurer is subject to the penalty provisions of Subtitle 99 of KRS Chapter 304; amend KRS 304.19-010, 304.19-020, 304.19-080, 304.19-090, and 304.19-130 to conform; direct that certain sections apply to contracts issued or renewed on or after the effective date of the Act.
Index Headings of Original Version	Banks And Financial Institutions - Credit transactions, credit personal property insurance, regulatory requirements Insurance - Credit personal property insurance, regulatory requirements Loans, Credit, Interest, And Usury - Credit personal property insurance, regulatory requirements State Agencies - Department of Insurance, credit personal property insurance, regulatory requirements Property - Credit personal property insurance, regulatory requirements