HB 513 (BR 963) - J. Gooch Jr
AN ACT relating to insurance.
Amend KRS 304.9-320 to require a business entity that applies for a consultant license to disclose to the Office of Insurance the identity of all officers and directors; create new sections of Subtitle 9 of KRS Chapter 304 to require consultants to enter into written contracts with clients, which the consultant must keep a copy of for at least five years after termination of the agreement; prohibit an individual or business entity licensed as a consultant and an agent or agency with whom the consultant has a financial or business ownership interest or affiliation from contracting, selling, soliciting, or negotiating insurance for the risk of the client that was the subject of a consulting contract during the term of the contract and within 9 months after termination of the contract; permit consulting fees to be shared between a business entity licensed as a consultant and an individual licensed as a consultant who is an owner, officer, partner, member, or employee of the business entity; amend KRS 304.9-360 to prohibit a person dually licensed as a consultant and an agent from acting as both a consultant and agent in the sale, solicitation, or negotiation of insurance for a risk which is the subject of a consultant contract; amend KRS 304.99-025 to provide penalties for violations of new requirements; amend KRS 304.9-350 to conform; create new sections of Subtitle 11 of KRS Chapter 304 to define "agent," "client," and other terms; permit an agent to charge a business entity client a fee in addition to or in lieu of a commission for placement of insurance or for service under certain circumstances; provide that if an agent receives compensation from the client for initial placement of business insurance and future business insurance service, the agent is prohibited from accepting or receiving a commission or other compensation from an insurer or other third party for the same placement unless the agent has disclosed that the compensation will be received and the agent agrees to credit the commissions received as an offset against the total fee agreed to by the client; amend KRS 304.12-100 to provide that nothing in KRS 304.12-080, 304.12-090, and 304.12-110 shall be construed as prohibiting the furnishing of programs for the purpose of reducing future premiums or other insurance or insurance services to assist in efficient administration and management of the policyholder's insurance program; amend KRS 304.12-080, 304.12-090, and 304.12-110 to conform; amend KRS 304.12-060 to provide that nothing in this section shall prohibit the distribution financial statements of insurers that are subject to KRS Chapter 61.
Feb 15-introduced in House
Feb 16-to Banking & Insurance (H)