PUBLIC PROTECTION CABINET

Kentucky Department of Insurance

Financial Standards and Examination Division

(As Amended at ARRS, June 10, 2014)

 

      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[authorized] 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].

 

      Section 1. Abuse of Finance Agreement[Minimum] Service 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.