Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
304.1-050,
304.4-010,
304.13-051,
304.14-120,
304.14-190,
304.21-010,
304.22-020,
304.23-010
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
304.2-110 authorizes the commissioner to
promulgate reasonable administrative regulations necessary for or as an aid to
the effectuation of any provision of the Kentucky Insurance Code as defined in
KRS
304.1-010.
KRS
304.14-120 authorizes the commissioner to
approve, disapprove, or exempt insurance documents and forms prior to issuance
for delivery in Kentucky. This administrative regulation provides form filing
procedures for property, casualty, surety, title, and mortgage guaranty
insurance.
Section 1. Definitions.
(1) "Commissioner" is defined by
KRS
304.1-050(1).
(2) "Department" is defined by
KRS
304.1-050(2).
Section 2. Electronic Filing.
(1) Every insurer, other than life or health
insurers, required by law or licensed advisory organization or form provider
permitted by law to file policy forms or endorsements, advertising and sales
materials, or other documents subject to form filing requirements shall file
the forms with the department electronically through the System for Electronic
Rate and Form Filing (SERFF) or other electronic manner approved by the
department.
(2) If the filing is
being made by a third party, a signed letter of authorization from the insurer
shall be submitted.
(3) Forms shall
be filed separately from rates and rules.
(4) A property and casualty form filing may
include forms for a particular insurance company or group of insurance
companies.
Section 3.
(1) A policy or form shall not be used in
Kentucky until it has been approved unless a policy or form has been exempted
by an order of the commissioner pursuant to
KRS
304.14-120(4). Any policy or
form exempt from prior approval requirements under an order issued by the
commissioner pursuant to
KRS
304.14-120(4) may be
subsequently disapproved for continued use on a prospective basis by the
commissioner or designee upon a finding that the policy or form:
(a) Does not meet the requirements of
Kentucky law;
(b) Contains any
provisions that are unfair, deceptive, ambiguous, misleading, or unfairly
discriminatory; or
(c) Is solicited
by means of advertising, communication, or dissemination of information which
is deceptive or misleading.
(2) If the rates pertaining to a form are
required by law to be filed or approved, the form shall not be used until the
appropriate rates have been filed or approved as required in accordance with
KRS
304.14-120 and
304.13-051.
Section 4.
(1) Filing fees shall be paid on a
per-company basis.
(2) The period
of time in which the commissioner may approve or disapprove the filing shall
not begin to run until both the complete filing and appropriate fee, in
accordance with
KRS
304.4-010 and
806 KAR
4:010, are received by the department.
Section 5.
(1) Insurers that are members, subscribers,
or service purchasers of an advisory organization or form provider permitted by
law to file policy forms or endorsements, advertising and sales materials, or
other documents other than those pertaining to rates may choose to adopt all or
some of the forms of that advisory organization or form provider.
(2) If an insurer chooses to adopt only a
specific filing of an advisory organization or form provider, it shall do so in
accordance with the procedures set forth in this administrative regulation, and
shall clearly identify which filing of the advisory organization or form
provider it is adopting.
(3)
(a) If an insurer chooses to adopt all of the
policy forms or endorsements, advertising and sales materials, or other
documents other than those pertaining to rates of an advisory organization or
form provider, it shall:
1. Provide written
authorization to the advisory organization or form provider to file those
materials on the insurer's behalf; or
2. File written notice with the commissioner
that it is adopting by reference all the current and future policy forms or
endorsements, advertising and sales materials, or other documents other than
those pertaining to rates that the advisory organization or form provider
files.
(b)
1. The advisory organization or form provider
shall file the written notice of authorization referred to in paragraph (a)1 of
this subsection with the commissioner and shall pay the appropriate fee, in
accordance with
KRS
304.4-010 and
806 KAR
4:010.
2.
The fee shall be paid for each company sending the written authorization and on
the basis of each line of insurance.
(c)
1. If
an insurer that previously authorized an advisory organization or forms
provider to file on its behalf as referred to in paragraph (a)1 of this
subsection, or an insurer that filed written notice with the executive director
to adopt by reference as referred to in paragraph (a)2 of this subsection
chooses not to adopt certain policy forms or endorsements, advertising and
sales materials, or other documents other than those pertaining to rates as
filed by the advisory organization or form provider, the insurer shall file a
notice of the non-adoption with the commissioner and shall pay the appropriate
filing fee, in accordance with
KRS
304.4-010 and
806 KAR
4:010.
2.
a. If an insurer chooses to delay the
effective date of its adoption of an advisory organization or forms provider
filing, it shall submit a letter to the departmentrequesting the revised date
upon which it shall adopt the filing.
b. The delayed adoption date shall be within
six (6) months of the original effective date.
c. If additional time is needed, a second
letter shall be submitted to the department, requesting a revised delayed
adoption date.
d. All revised
delayed adoption dates shall be within one (1) year of the original effective
date as filed by the advisory organization or forms
provider.
3. If an
insurer does not adopt the advisory organization or forms provider filing
within one (1) year of the original effective date as filed by the advisory
organization or forms provider, the insurer shall submit a non-adoption
filing.
(4)
The requirements of this section shall apply to any filing made pursuant to an
exemption order issued by the commissioner under
KRS
304.14-120(4), unless the
commissioner specifically exempts the advisory organization or form provider
from these requirements in the order.
Section 6. If a filing includes a form which
amends, replaces, or supplements a form which has been previously filed and not
disapproved, it shall be accompanied by a letter of explanation from the filer
setting forth the following:
(1) All changes
contained in the newly filed form;
(2) The effect, if any, the changes have upon
the hazards purported to be assumed by the policy; and
(3) An explanation as to the effect on the
applicable rates.
Section
7.
(1) Facsimile signatures of
company officers, attorneys-in-fact, employees, and representatives shall not
be required and shall not be submitted with any filing.
(2) A change of signature of the executing
officer on a policy form shall not, because of this change alone, require a new
filing.
STATUTORY AUTHORITY:
KRS
304.2-110,
304.14-120