806 KAR 7:010. Loans to relatives, prohibited investments.

 

      RELATES TO: KRS 304.7-340

      STATUTORY AUTHORITY: KRS 304.2-110

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.7-340 prohibits an insurer from investing in any note or other evidence of indebtedness of any director or officer of the insurer, except as to policy loans. The function of this administrative regulation is to preclude an insurer from indirectly investing in a note of director or officer through a spouse or a relative by blood or marriage.

 

      Section 1. Investment in any note or other evidence of indebtedness of the spouse or a relative by blood or marriage residing in the same household as any director or officer of a domestic insurer shall be presumed to be an investment in a note or other evidence of indebtedness of said director and/or officer. (I-7.01; 1 Ky.R. 1075; Am. 2 Ky.R. 25; eff. 7-2-75.)