806 KAR 9:250. Specialty credit insurance producer and managing employee.

      RELATES TO: KRS 304.9-485

      STATUTORY AUTHORITY: KRS 304.2-110

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.2-110 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. This administrative regulation establishes the information to be included in the application and amendments to the application for specialty credit insurance producer and managing employee licenses. Also, this administrative regulation establishes the procedures for recordkeeping by the licensed specialty credit insurance producer.

      Section 1. Definitions. (1) "Executive director" means the Executive Director of the Office of Insurance.

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

      Section 2. Application and Amendments. (1) The license application for a specialty credit insurance producer shall be submitted as a package, and shall include:

      (a) Form 8301-BE, incorporated by reference in 806 KAR 9:340, for the business entity specialty credit insurance producer applicant or the business entity uniform application prescribed by the National Association of Insurance Commissioners; or Form 8301, incorporated by reference in 806 KAR 9:340, for the individual specialty credit insurance producer applicant or the individual uniform application prescribed by the National Association of Insurance Commissioners; signed by the applicant;

      (b) Form 8301, incorporated by reference in 806 KAR 9:340, or the individual uniform application prescribed by the National Association of Insurance Commissioners Individual Uniform Application, for each managing employee applicant signed by the applicant;

      (c) Form 8301-BGC, incorporated by reference in 806 KAR 9:340, for resident specialty credit insurance producer or managing employee applicants;

      (d) Form 8301-SC, incorporated by reference in 806 KAR 9:340, signed by the specialty credit insurance producer applicant and all managing employee applicants; and

      (e) The fees specified in KRS 304.4-010 and 806 KAR 4:010.

      (2) A licensed specialty credit insurance producer shall submit an amended Form 8301, Form 8301-BE, or 8301-SC, incorporated by reference in 806 KAR 9:340, as applicable, no later than thirty (30) days from the date of any change.

      Section 3. Licensed Managing Employee. (1) A licensed specialty credit insurance producer shall not transact insurance at any business location that does not have a licensed managing employee assigned to that location.

      (2) The licensed specialty credit insurance producer shall assume responsibility for the insurance activities of its licensed managing employees.

      Section 4. Unlicensed Employees and Representatives. (1) Upon completion of the required training for unlicensed employees and representatives, the licensed specialty credit insurance producer shall obtain a certification in writing from each unlicensed employee or representative that he or she received the instruction with respect to the required consumer disclosures. The certification shall include the date of the instruction.

      (2) The licensed specialty credit insurance producer shall maintain complete records of the certification required by this section at the business location of each unlicensed employee or representative for at least three (3) years.

      (3) The licensed specialty credit insurance producer shall assume responsibility for the insurance activities of its unlicensed employees and representatives. (27 Ky.R. 1400; Am. 1805; eff. 1-15-2001; 32 Ky.R. 320; 881; eff. 12-2-05.)