806 KAR 10:050. Surplus lines affidavits.
RELATES TO: KRS 304.1-070, 304.10-030, 304.10-040, 304.10-050, 304.10-070, 304.10-160
STATUTORY AUTHORITY: KRS 304.2-110, 304.10-050, 304.10-210
NECESSITY, FUNCTION, AND CONFORMITY: EO 2004-731, signed July 9, 2004, created the Office of Insurance. KRS 304.2-110 authorizes the commissioner of insurance to promulgate administrative regulations necessary for or as an aid to the effectuation of the Kentucky Insurance Code, as defined in KRS 304.1-010. KRS 304.10-050 requires the Commissioner of Insurance to promulgate administrative regulations prescribing the affidavit form and the manner and form of filing the surplus lines broker affidavit of eligibility for export. KRS 304.10-210 requires the Commissioner of Insurance to promulgate administrative administrative regulations to effectuate the surplus lines law. This administrative regulation established the manner and form for surplus line brokers to furnish to the Office of Insurance evidence of eligibility for export required by KRS 304.10-050.
Section 1. Time Period for Filing. An affidavit of eligibility for export shall be filed by the licensed surplus line broker with the Office of Insurance within sixty (60) days after each premium bearing surplus lines transaction with a foreign insurer. The affidavit shall be filed within ninety (90) days after each premium bearing surplus lines transaction with an alien insurer.
Section 2. Methods of Filing. Affidavits shall be filed by mail or electronically.
(1) Mail. A Surplus Lines Affidavit, Kentucky S.L. Form 1 (Rev. 06/04), shall be completed and mailed to the Office of Insurance. It shall be accompanied by a copy of the declaration page, endorsement, or audit of the policy. The policy document shall detail premiums, assessments, fees, charges or other consideration deemed part of the premium, surplus lines tax, premium surcharge and local government premium tax. If the declaration page is not available to make a timely filing of the affidavit, a copy of the binder showing the above details of the placement shall be submitted.
(2) Electronically. A Surplus Lines Affidavit shall be completed via eServices via the Office of Insurance website, http://doi.ppr.ky.gov/kentucky/, or via File Transfer Protocol (FTP) submission.
(3) The broker shall maintain records of each transaction, including evidence of efforts to place insurance with insurers authorized to transact and actually writing insurance in this state, which shall be subject to examination by the Office of Insurance pursuant to KRS 304.10-160.
(4) All affidavits, however submitted, shall be complete. Incomplete affidavits shall not be accepted by the department and shall be returned for correction and resubmission within the timeframes established in Section 1 of this administrative regulation.
Section 3. Incorporated by Reference: (1) "Surplus Lines Affidavit, Kentucky S.L. Form 1 (Rev. 06/04)" is incorporated by reference.
(2) 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. Forms may also be obtained on the Office of Insurance internet website at http://doi.ppr.ky.gov/kentucky/. (31 Ky.R. 513; Am. 706; eff. 11-5-2004.)