806 KAR 20:020. Cancellation and nonrenewal of automobile liability insurance policies.

 

      RELATES TO: KRS 304.12-020, 304.20-040

      STATUTORY AUTHORITY: KRS Chapter 13A, 304.2-110

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.2-110 provides that the Executive Director of Insurance may make reasonable administrative regulations necessary for or as an aid to the effectuation of any provision of the Kentucky Insurance Code. This administrative regulation establishes procedures for giving notice of cancellation and nonrenewal of automobile liability insurance policies.

 

      Section 1. Definitions; Scope. The definitions of KRS 304.20-040 apply to this administrative regulation. This administrative regulation has the same scope as KRS 304.20-040.

 

      Section 2. Notice of Cancellation and Nonrenewal of Automobile Liability Insurance Policies. (1) Notice of cancellation and nonrenewal of automobile liability insurance policies shall be given pursuant to KRS 304.20-040. The reason for cancellation or nonrenewal of the policy shall appear in or accompany the notice. The reason for cancellation or nonrenewal of the policy shall be a written statement reasonably calculated to inform the insured of the reason for the cancellation or nonrenewal.

      (2) A reason for cancellation or nonrenewal which does not appear in the notice of cancellation or nonrenewal shall not be a basis for cancellation or nonrenewal.

      (3) The fact that the reason for cancellation or nonrenewal has been obtained through an investigative consumer report subject to the Fair Credit Reporting Act, 15 USC 1681 et seq., does not relieve the insurer from the requirement of notifying the insured of the reason for the cancellation or nonrenewal. However, any insured wishing to learn the substance of an investigative consumer report must be directed to contact the consumer reporting agency which prepares the investigative consumer report and follow the procedures contained in the Fair Credit Reporting Act.

 

      Section 3. Effective Date. This administrative regulation shall become effective upon completion of its review pursuant to KRS Chapter 13A. (14 Ky.R. 2245; eff. 8-4-88; TAm eff. 8-9-2007.)