Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
186.021(3),
186A.040,
186A.042,
186A.095,
304.39-080,
304.39-083,
304.39-085,
304.39-087,
304.39-090,
304.39-117
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
186.021(3) authorizes the
commissioner of the Department of Insurance to promulgate an administrative
regulation to establish the manner for presenting proof of motor vehicle
insurance to a county clerk.
KRS
304.2-110(1) and
304.39-300 authorize the
commissioner to promulgate administrative regulations necessary for or as an
aid to enforce the insurance code.
KRS
304.39-117(1) requires the
Department of Insurance to promulgate an administrative regulation that
establishes the requirements for the proof of insurance that an insurer shall
give to an insured. This administrative regulation establishes the requirements
for the proof of insurance, the methods for reporting coverage provided for
personal motor vehicles insured on a personal lines motor vehicle policy, the
methods for presenting proof of motor vehicle insurance to a county clerk or
peace officer, and the requirements for notifying the Department of Vehicle
Regulation if a binder, contract, or commercial policy of motor vehicle
insurance is cancelled or not renewed.
Section
1. Definitions.
(1)
"Commissioner" is defined by
KRS
304.1-050(1).
(2) "Department" is defined by
KRS
304.1-050(2).
(3) "Insurer" means an insurer defined by
KRS
304.1-040.
(4) "Motor vehicle insurance policy" means an
insurance contract that provides security covering a motor vehicle required to
be registered pursuant to
KRS
186.020 and insured pursuant to
KRS
186.021 and
304.39-080.
(5) "Person" is defined by
KRS
304.1-020.
(6) "Personal lines motor vehicle policy"
means an insurance policy, issued by an insurance carrier authorized to do
business in the Commonwealth of Kentucky, which insures a personal motor
vehicle.
(7) "VIN" means the
vehicle identification number of a motor vehicle.
Section 2. Proof of Insurance to be Provided
by Insurers.
(1) The proof of insurance
required by
KRS
304.39-117 shall be provided to the insured
when a policy is issued, renewed, or amended to include a vehicle. An insurer
electing to provide proof of insurance in an electronic format shall provide a
printed proof of insurance unless the insured requests to receive proof of
insurance in electronic format.
(2)
Printed proof of insurance card.
(a) Two (2)
copies of the printed proof of insurance card shall be provided for each motor
vehicle insured under a motor vehicle insurance policy.
(b) Size and format of the printed proof of
insurance card.
1. The printed proof of
insurance card shall be:
a. A two and
one-fourth (2 1/4) inch by three and one-half (3 1/2) inch card;
b. A two and one-fourth (2 1/4) inch by seven
(7) inch card with a vertical fold resulting in a two and one-fourth (2 1/4)
inch by three and one-half (3 1/2) inch card;
c. A four and one-half (4 1/2) inch by three
and one-half (3 1/2) inch card with a horizontal fold resulting in a two and
one-fourth (2 1/4) inch by three and one-half (3 1/2) inch card; or
d. A substantially similar size to the
dimensions established in clauses a. through c. of this subparagraph.
2. The printed insurance card
shall be on white paper with black or blue ink.
(3) Proof of insurance in an electronic
format.
(a) Proof of insurance in an
electronic format shall be downloaded from or transmitted by the insurer or
agent to the insured.
(b) Proof of
insurance in an electronic format shall not include a photographic copy of a
paper insurance card on a portable electronic device.
(4) Mandatory contents of the proof of
insurance. In either paper or electronic format, the proof of insurance shall
prominently display the following information, in the order listed:
(a) Title: "COMMONWEALTH OF KENTUCKY PROOF OF
INSURANCE";
(b) The name of the
insurance company and its five (5) digit code number assigned by the National
Association of Insurance Commissioners (NAIC), or the name of the Self-Insured
Group and the group ID number provided by the department;
(c) The name of the named insured;
(d) The effective date and expiration date of
coverage. If the policy is amended to add an identified vehicle midterm, the
effective date on the card shall be the effective date of the
amendment;
(e) The policy
number;
(f) The type of policy:
1. If the policy is a personal lines motor
vehicle policy for which premium is reported on the NAIC Annual Statement line
19.1 or 19.2, the insurer shall indicate the policy type as "Personal" or "PL";
or
2. If the policy is a commercial
lines motor vehicle policy for which premium is reported on the NAIC Annual
Statement line 19.3 or 19.4, the insurer shall indicate the policy type as
"Commercial" or "CL"; and
(g) The vehicle or vehicles insured:
1. If the type of policy is personal lines
(PL), the year, make, model, and VIN of each motor vehicle; or
2. If the type of policy is commercial lines
(CL), and:
a. If the insurance contract covers
four (4) or fewer vehicles, the year, make, model, and VIN of each motor
vehicle; or
b. If the insurance
contract covers five (5) or more motor vehicles, it may state "Fleet" or the
insurer may elect to include the year, make, model, and the VIN of each motor
vehicle.
(5) Other information to be provided to the
insured. The insurer shall:
(a) Include the
following information on the proof of insurance if the information required by
subsection (4) of this section is not obscured:
1. The insurer's logo;
2. A statement that establishes the procedure
for contacting the insurer concerning a claim; and
3. The insurer's address; or
(b) Include the information listed
in paragraph (a) of this subsection on a separate document or electronic image
provided with the proof of insurance.
(6) An insurer shall provide with the proof
of insurance the following information:
(a)
Instructions that the insured shall keep a copy of the proof of insurance in
each motor vehicle covered by the policy at all times;
(b) Information as to whether or not the
policy is a personal lines motor vehicle policy and whether or not the vehicle
has been reported as an insured personal motor vehicle;
1. If the policy is a personal lines motor
vehicle policy and has been reported as an insured personal motor vehicle, the
insured shall be informed that:
a. The proof
of coverage information has been reported electronically to the Department of
Vehicle Regulation; and
b. If the
VIN does not appear in the database, the insured may be required to present
proof of insurance to the county clerk for issuance of a replacement plate,
decal, or registration certificate or renewal as alternative evidence of proof
of coverage; or
2. If
the policy is not a personal lines motor vehicle policy and has not been
reported as an insured personal motor vehicle, the insured shall be instructed
to present proof of insurance to the county clerk for issuance of a replacement
plate, decal, or registration certificate or renewal as evidence of proof of
coverage; and
(c)
Instructions to compare the VIN appearing on the registration, insurance
policy, and proof of insurance to the VIN affixed to the vehicle.
1. If the VIN on the motor vehicle title and
registration and the VIN on the motor vehicle do not match, the policyholder
shall contact the county clerk to have the title and registration
corrected.
2. If the VIN on the
proof of insurance and the motor vehicle do not match, the policyholder shall
contact the insurer to have the insurance policy and card corrected. The
insurer shall provide the name, address, and telephone number of an insurer
representative to contact concerning a discrepancy. The telephone number shall
be:
a. The phone number of a local agent of
the insurer; or
b. A toll-free
telephone number of the insurer.
Section 3. Methods of Proving
Motor Vehicle Insurance. One (1) of the following methods shall be used to
prove that motor vehicle insurance is in effect when registering a motor
vehicle:
(1) The VIN shall appear as an
insured motor vehicle in the Department of Vehicle Regulation's
database;
(2) Proof of current
insurance in paper or electronic format:
(a)
If the database does not list the VIN of a vehicle insured on a personal lines
motor vehicle (PL) policy, the proof of coverage shall indicate the proof was
effective no more than forty-five (45) days prior to submission to the county
clerk; and
(b) The county clerk may
require the proof of coverage to be sent directly to the clerk by the agent or
company;
(3) A
certificate of insurance issued by an insurance agent with a casualty line of
authority licensed by Kentucky;
(4)
An insurance contract with a declaration page attached showing that the policy
is in effect when the motor vehicle is being registered or
transferred;
(5) A letter from the
Kentucky Automobile Insurance Plan serving as prima facie evidence of insurance
in force;
(6) If the owner of the
motor vehicle is serving in the armed forces outside Kentucky, an affidavit by
the provost marshal of the base where the person is stationed stating that the
motor vehicle is covered by an automobile liability insurance policy;
or
(7) A letter from the Kentucky
Department of Insurance serving as prima facie evidence of self-insurance
pursuant to
KRS
304.39-080(7).
Section 4. Each month, an insurer
shall submit information on each vehicle covered by a personal lines motor
vehicle policy according to the rules contained in Section 2.1 of the Kentucky
Automobile Liability Insurance Reporting Guide.
Section 5. For motor vehicles insured under a
commercial lines or fleet policy, each insurer shall report cancellations
pursuant to Part 2.2 of the Kentucky Automobile Liability Insurance Reporting
Guide.
Section 6. Incorporation by
Reference.
(1) The following material is
incorporated by reference:"Kentucky Automobile Liability Insurance Reporting
Guide", Transportation Cabinet, Department of Vehicle Regulation, Version 1.6,
8/15/2005
(2) This material may be
inspected, copied, or obtained, subject to applicable copyright law, at the
Department of Insurance, The Mayo-Underwood Building, 500 Mero Street
Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. The
material may also be obtained at the Department of Insurance Web site:
http://insurance.ky.gov.
STATUTORY AUTHORITY:
KRS
186.021(3),
304.2-110(1),
304.39-117(1),
304.39-300