98RS HB401


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HB 401 (BR 1599) - R. Crimm

     AN ACT relating to insurance.
     Amend KRS 304.2-400 to delete provision that directed that funds in the Department of Insurance regulatory trust fund in excess of two million dollars lapse to the general fund; amend KRS 304.2-410 and 304.2-440 to conform; amend KRS 304.9-440 to allow the commissioner to revoke or suspend an agent's license for conviction of a crime involving dishonesty, breach of trust, or moral turpitude and for surrendering any other license under threat of disciplinary action; create a new section of Subtitle 9 of KRS Chapter 304 to require a person to notify the commissioner if his license to conduct securities, real estate, auctioneer, investment, financial, or financial planning business is surrendered or terminated under threat of disciplinary action, refused, suspended, revoked, or renewal of continuance denied; amend KRS 304.47-010 to create the Division of Insurance Fraud Investigation; amend KRS 304.47-020, 304.47-040, 304.47-050, and 304.47-060 to conform


     HFA (1, R. Damron) - Amend KRS 304.47-010 to include reinsurer in the definition of "insurer"; define "criminal syndicate"; and amend KRS 304.47-020 to establish that a person commits a "fraudulent insurance act" if a person knowingly and with intent to defraud causes any written or oral statements in support of certain specific insurance related activities; establish that a person commits a "fraudulent insurance act" if a person knowingly and with intent to defraud engages in solicitation on behalf of an insolvent insurer; remove, or conceal an insurer's records, assists, abetts, or conspires with another to commit fraud; establish that any person with the purpose to establish or maintain a criminal syndicate or to facilitate any of its activities is guilty of engaging in organized crime, a Class B felony punishable by 10 to 20 years in prison, a fine per occurrence or both.
     SCA (1, D. Seum) - Amend to set forth that a license may be suspended if the licensee has been convicted of a misdemeanor for which restitution is ordered in excess of $300, or a felony involving certain crimes.

     Jan 23-introduced in House
     Jan 26-to Banking and Insurance (H)
     Feb 11-posted in committee
     Feb 19-reported favorably, 1st reading, to Calendar
     Feb 20-2nd reading, to Rules
     Feb 24-floor amendment (1) filed; posted for passage in the Regular Orders of the Day for February 25, 1998
     Feb 27-3rd reading, passed 84-10 with floor amendment (1)
     Mar 2-received in Senate
     Mar 3-to Banking and Insurance (S)
     Mar 11-reported favorably, 1st reading, to Consent Calendar with committee amendment (1)
     Mar 12-2nd reading, to Rules
     Mar 17-posted for passage in the Consent Orders of the Day for March 19, 1998
     Mar 19-3rd reading, passed 38-0 with committee amendment (1)
     Mar 20-received in House; posted for passage for concurrence in Senate amendment
     Mar 24-House concurred in Senate committee amendment (1); passed 86-2
     Mar 25-enrolled, signed by each presiding officer, delivered to Governor
     Mar 31-signed by Governor

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