Kentucky Administrative Regulations
Title 806 - PUBLIC PROTECTION CABINET - DEPARTMENT OF INSURANCE
Chapter 14 - Insurance Contract
Section 806 KAR 14:020 - Binders
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 304.14-220
NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.2-110 provides that the Executive Director of Insurance may make reasonable rules and administrative regulations necessary for or as an aid to the effectuation of any provision of the Kentucky Insurance Code. This administrative regulation sets forth certain requirements to be met by companies when issuing binders.
Section 1. No binder shall be issued covering any property or casualty risk within the Commonwealth of Kentucky unless a proper premium is charged therefor, and no such coverage shall be cancelled flat. In every case, the agent must charge the proper pro rata or short rate premium for the period of risk.
Section 2.
Section 3. This administrative regulation does not apply to business being audited by the office of insurance services and successor agencies, as the subject is covered in its filed and approved rule book. On lines not being audited by said office, every binder shall be handled in accordance with this administrative regulation.
STATUTORY AUTHORITY: KRS 304.2-110