806 KAR 9:070. Examinations.

806 KAR 9:070. Examinations.

RELATES TO: KRS 304.9-105, 304.9-160, 304.9-190, 304.9-230, 304.9-320, 304.9-430, 304.15-700

STATUTORY AUTHORITY: KRS 304.2-110(1), 304.9-160(1), 304.9-230(2), 304.15-700(2)(a), 304.15-720

NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.2-110(1) authorizes the Executive Director of Insurance to 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. KRS 304.9-160(1) requires the executive director to promulgate administrative regulations developing and conducting examinations required by Subtitle 9 of the Kentucky Insurance Code. KRS 304.9-230(2) requires the executive director to promulgate administrative regulations regarding examinations for limited lines of authority. KRS 304.15-700(2)(a) requires the executive director to promulgate administrative regulations regarding the required training and examination for viatical settlement brokers, and KRS 304.15-270 authorizes the executive director to promulgate regulations to implement KRS 304.15-700 through 304.15-720. This administrative regulation restricts the number of times an applicant for an agent's, viatical broker's, consultant's, or adjuster's license may take the appropriate examination required by the Kentucky Insurance Code, as defined in KRS 304.1-020, or administrative regulations promulgated thereunder, establishes the minimum score for successful completion of a written licensing examination, and establishes the period for which examination scores are valid.

Section 1. Definitions. (1) "Examination" means a written examination required to license an applicant in accordance with KRS Chapter 304 for an adjuster, agent, consultant, or viatical settlement broker license.

(2) "Executive Director" means the Executive Director of the Office of Insurance.

(3) "License" is defined by KRS 304.1-110(2).

(4) "Office" means the Office of Insurance.

Section 2. A completed written application for the examination and documentation demonstrating successful completion of any required prelicensing training shall be filed with the executive director by, or on behalf of, the applicant, prior to the date scheduled for the examination. The application shall be accompanied by fees specified in KRS 304.4-010 or 806 KAR 4:010.

Section 3. Every applicant for a license who is required to take a written examination shall answer correctly seventy (70) percent of the questions to successfully pass the examination.

Section 4. An applicant who takes an examination required by KRS Chapter 304 shall be permitted to take or retake an examination a total of three (3) times within 120 days of the receipt of an application by the executive director. Applicable fees, as set out in KRS 304.4-010 and 806 KAR 4:010, Section 1(15)., shall be submitted with the request to retake the examination. The request shall be made on an "Examination Retake Form", incorporated by reference in 806 KAR 9:340.

Section 5. An individual applying for a line of authority identified in KRS 304.9-030(2) shall successfully complete examinations as follows:

(1) For life line of authority, a life examination;

(2) For health line of authority, a health examination;

(3) For property line of authority, a property examination;

(4) For casualty line of authority, a casualty examination;

(5) For personal lines, a property and casualty personal lines examination;

(6) For a line of authority identified in accordance with KRS 304.9-030(2)(h), an examination appropriate for the kind of insurance; and

(7) For variable life and variable annuity products, no examination is required.

Section 6. (1) The provisions of this administrative regulation shall apply to every individual resident applicant for a limited line of authority identified in KRS 304.9-230(1).

(2) An individual applying for limited lines of authority as identified in KRS 304.9-230 shall successfully complete examinations as follows:

(a) For surety limited line of authority, a surety examination;

(b) For travel limited line of authority, a travel examination;

(d) For limited lines credit limited line of authority, no examination is required.

Section 7. An individual applying for a viatical settlement broker license shall successfully complete a viatical settlement examination unless exempt from examination pursuant to KRS 304.15-700(2)(b).

The examination shall be given by the executive director or in accordance with provisions of an agreement the executive director executes with another state.

Section 8. (1) If an applicant who applies to take the examinations required by KRS Chapter 304 does not take an examination or fails to pass an examination within 120 days of the filing of his or her application, the application shall become invalid, unless the executive director grants an extension for good cause shown. The applicant may file a new application at any time following the expiration of the 120 day period, and an examination may be taken when scheduled by the office in the regular course of business.

(2) In determining good cause, the executive director shall consider whether the delay to take the examination or the failure to pass the examination within the time period specified in subsection (1) of this section was due to extenuating circumstances beyond the applicant's control.

Section 9. Examination results are valid for one (1) year from the date the examination is taken. Application for additional lines of authority or licenses issued as a result of the same examination shall be received by the executive director within the same one (1) year period. After this period, the applicant shall be retested. (I-9.11; 1 Ky.R. 861; eff. 5-14-75; Am. 8 Ky.R. 926; eff. 4-7-82; 9 Ky.R. 611; eff. 12-1-82; 10 Ky.R. 1127; 1164; eff. 6-1-84; 27 Ky.R. 1592; 2153; eff. 2-15-2001; 29 Ky.R. 1360; 1842; 2097; eff. 2-16-03; 32 Ky.R. 315; 1618; eff. 3-31-06.)