806 KAR 30:020. Abuse of minimum service charge.

 

      RELATES TO: KRS 304.30-050, 304.30-090(3)

      STATUTORY AUTHORITY: KRS 304.30-070

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.30-070 authorizes the commissioner to promulgate administrative regulations to effectuate the provisions of the Kentucky Insurance Code, as defined in KRS 304.1-010, and to regulate the manner in which licensed insurance premium finance companies conduct their business. This administrative regulation establishes a prohibition on abuse of the finance agreement service charge.

 

      Section 1. Abuse of Finance Agreement Service Charge Prohibited. An insurance agent, broker, or premium finance agency shall not induce an insured to become obligated under more than one (1) premium finance agreement for the purpose of obtaining more than one (1) service charge, as specified in KRS 304.30-090(3). (1 Ky.R. 1086; eff. 7-2-75; TAm eff. 8-9-2007; 40 Ky.R. 2622; 41 Ky.R. 43; eff. 8-1-2014.)