806 KAR 2:110. Financial examinations of insurers.
RELATES TO: KRS 304.2-210, 304.2-230
STATUTORY AUTHORITY: KRS 304.2-110
NECESSITY, FUNCTION, 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 establishes standards for the Executive Director of Insurance and his examiners in conducting financial examinations of insurers.
Section 1. Definitions. (1) "Accredited state" means a state in which the insurance supervisory authority has qualified as meeting the minimum financial regulatory standards established from time to time by the National Association of Insurance Commissioners; and
(2) “Executive Director" means the Executive Director of the Kentucky Department of Insurance.
.
Section 2. Foreign insurers authorized to do business in Kentucky shall be examined no less frequently than every five (5) years.
Section 3. The executive director shall not accept an examination report from the insurance supervisory official of another state on or after January 1, 1994, unless:
(1) The foreign or alien insurer is domiciled in a state which is an accredited state;
(2) The examination is performed under the supervision of an accredited state; or
(3) The examination is performed with the participation of an examiner employed by an accredited state who states under oath that the examination was consistent with the standards and procedures required by the accredited state.
Section 4. The executive director’s examiners shall observe the procedures set forth in the National Association of Insurance Commissioners Financial Condition Examiners Handbook (1976; as updated 1992), incorporated herein by reference and available from the Kentucky Office of Insurance, 215 West Main Street, Frankfort, Kentucky 40601-1847, 8 a.m. to 4:30 p.m. (ET) weekdays. (19 Ky.R. 1028; Am. 1379; eff. 12-9-92; TAm eff. 8-9-2007.)