PUBLIC PROTECTION CABINET
Kentucky Department of Insurance
Financial Standards and Examination Division
(As Amended at ARRS, June 10, 2014)
RELATES TO: KRS 304.30-050, 304.30-090(3)
STATUTORY AUTHORITY: KRS 304.30-070
FUNCTION, AND CONFORMITY: KRS 304.30-070 authorizes[
the commissioner[ executive director] to promulgate[ make
reasonable] administrative regulations to effectuate the provisions
of [ Subtitle 30 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[ sets forth
an untrustworthy act to be considered as sufficient to revoke or to suspend a license].
1. Abuse of Finance Agreement[
Charge Prohibited. An[ No] insurance agent,[ or]
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)[ minimum]
service charge, as specified in KRS 304.30-090(3)[ change][ of
fifteen (15)][ ten (10)][ dollars].
SHARON P. CLARK, Commissioner
ROBERT D. VANCE, Secretary
APPROVED BY AGENCY: April 10, 2014
FILED WITH LRC: April 15, 2014 at 10 a.m.
CONTACT PERSON: DJ Wasson, Administrative Coordinator, Kentucky Department of Insurance, P. O. Box 517, Frankfort, Kentucky 4060, phone (502) 564-0888, fax (502) 564-1453.