806 KAR 9:030. Adjusters, apprentice adjusters; licenses, restrictions.

      RELATES TO: KRS 304.9-070, 304.9-430(2)(g), 304.9-432(2)(d)

      STATUTORY AUTHORITY: KRS 304.2-110(1)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.2-110(1) provides that the Executive Director of the Office of Insurance may promulgate administrative regulations necessary for or as an aid to the effectuation of any provision of the Kentucky Insurance Code as defined in KRS 304.1-010. This administrative regulation restricts the persons whom an adjuster may represent thus preventing any conflicts of interest, and clarifies the circumstances under which the restriction for holding only one (1) apprentice adjuster license applies.

      Section 1. (1) An adjuster's license issued to an applicant pursuant to the provisions of the Insurance Code shall not authorize representing the interest of both insurer and the insured or claimant. A licensee shall not represent the interest of both insurer and the insured or claimant.

      (2) At the time of application, an applicant shall elect to act solely on behalf of:

      (a) Insurers; or

      (b) Persons claiming benefits under insurance or annuity contracts.

      (3) A licensee shall be deemed to act in a fiduciary capacity to his principal.

      (4) The executive director shall not issue a license until the prospective licensee posts a bond in the amount of $1000 and in accordance with 806 KAR 9:210.

      Section 2. A license shall, by label, distinguish clearly between the following categories, as elected by the licensee pursuant to Section 1(2) of this administrative regulation.

      (1) A licensee who acts solely on behalf of insurers shall be known as an "independent adjuster".

      (2) A licensee who acts solely on behalf of persons claiming benefits under insurance or annuity contracts shall be known as a "public adjuster."

      Section 3. An individual may hold only one (1) apprentice adjuster license until the individual is issued an adjuster license in accordance with KRS 304.9-430. Once an individual has held an adjuster license in accordance with KRS 304.9-430, the individual may again be eligible to hold one (1) apprentice adjuster license.

      Section 4. Application for License. (1) An individual applying for an adjuster license or an apprentice adjuster license shall submit a completed Form 8301.

      (2) A business entity applying for an adjuster license shall submit completed Form 8301-BE.

      Section 5. Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) Form 8301, "Individual Insurance Producer License Application (7-12-2002 edition)"; and

      (b) Form 8301-BE, "Business Entity License Application (7-15-2002 edition)".

      (3) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Office of Insurance, 215 West Main Street, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. (I-9.03; 1 Ky.R. 860; eff. 5-14-75; Am. 9 Ky.R. 610; eff. 12-1-82; 1318; eff. 7-6-83; 29 Ky.R. 1358; 1794; eff. 1-16-2003; TAm eff. 8-9-2007.)