00RS HB595


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HB 595 (BR 2101) - J. Bruce, J. Gooch

     AN ACT relating to insurance.
     Create new sections of Subtitle 9 of KRS Chapter 304 to define "specialty credit insurance producer"; permit the commissioner of the Department of Insurance to issued a license as a specialty credit insurance producer for certain lines of insurance; establish requirements for license; exempt specialty credit insurance producers from the requirements of Subtitle 9; allow an employee or representative of a specialty credit insurance producer to participate in selling insurance; authorize the commissioner to impose penalties for violations; provide that examination and continuing education are not required for issuance of a license; permit a licensee to receive commissions or other compensation.


     HCS - Retain original provisions and define "managing employee;" require the application for a specialty credit insurance producer license to include certification by the insurer that the insurer is satisfied that the applicant is trustworthy and that the insurer has appointed the managing employee and business entity applicants to act as agents for the specified insurance; delete provision that exempted a licensee from all provisions of Subtitle 9; prohibit transaction of insurance at any location unless the sale includes consumer protection disclosures in the federal Truth in Lending Act; require a business entity to maintain at least one managing employee; require licenses to be renewed biennially; authorize commissioner to establish revenue neutral license, location, and renewal fees by administrative regulation in an amount sufficient to maintain the department's revenues generated by credit limited license fees for fiscal year ending June 2000.
     SCA (1, T. Buford) - Amend to exempt banks licensed to do business in the Commonwealth from specialty credit insurance licensing.
     SCA (2, D. Seum) - Create a new section of Subtitle 9 of KRS Chapter 304, to require the commissioner through administrative regulations to issue a specialty producer license to managing employees of a rental company in the business of renting motor vehicles under a rental agreement of 90 days or less to sell insurance in connection with and incidental to a rental vehicle transaction.

     Feb 7-introduced in House
     Feb 8-to Banking and Insurance (H); posted in committee
     Feb 10-reported favorably, 1st reading, to Calendar with Committee Substitute
     Feb 14-2nd reading, to Rules
     Feb 15-posted for passage in the Regular Orders of the Day for Wednesday, February 16, 2000
     Feb 18-3rd reading, passed 92-1 with Committee Substitute
     Feb 22-received in Senate
     Feb 24-to Banking and Insurance (S)
     Mar 7-reported favorably, 1st reading, to Calendar with committee amendments (1) and (2)
     Mar 8-2nd reading
     Mar 15-posted for passage in the Regular Orders of the Day for Friday, March 17, 2000
     Mar 17-3rd reading; committee amendment (2) withdrawn ; passed with 31-2 committee amendment (1) ; received in House; posted for passage for concurrence in Senate committee amendment (1)
     Mar 21-House concurred in Senate committee amendment (1) ; passed 93-0
     Mar 23-enrolled, signed by each presiding officer, delivered to Governor
     Mar 29-signed by Governor (Acts ch. 194)

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