Kentucky Statutes 304.13-091 – License for advisory organization, statistical agent, or form provider — Refusal to supply services — Application for license — Fees
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(1) No advisory organization, statistical agent, or form provider shall provide any otherwise permitted service, and no insurer shall utilize the services unless the organization has obtained a license pursuant to subsection (3) of this section.
(2) No advisory organization, statistical agent, or form provider shall refuse to supply any services for which it is licensed in Kentucky to any insurer authorized to do business in Kentucky and offering to pay the fair and usual compensation for the services.
(3) An advisory organization, statistical agent, or form provider applying for a license shall include with its application:
(a) A copy of its constitution, charter, articles of organization, agreement, association or incorporation, bylaws, plan of operation, and any other rules or regulations governing the conduct of its business;
(b) A list of its members, subscribers, and customers;
(c) The name and address of one (1) or more residents of Kentucky upon whom notices, process affecting it, or orders of the commissioner may be served;
(d) A statement showing its technical qualifications for acting in the capacity for which it seeks a license;
(e) A biography of the ownership and management of the organization; and
(f) Any other relevant information and documents that the commissioner may require.
(4) Every organization which has applied for a license shall notify the commissioner of every material change in the facts or in the documents on which its application was based. Any amendment to a document filed under this section shall be filed at least thirty (30) days before it becomes effective.
(5) If the commissioner finds that the applicant and the natural persons through whom it acts are competent, trustworthy, and technically qualified to provide the services proposed, and that all requirements of the law are met, he or she shall issue a license specifying the authorized activity of the applicant. The commissioner shall not issue a license if the proposed activity would tend to create a monopoly or to substantially lessen the competition in any market. At the request of the licensee, licenses issued under this section may be renewed on an annual basis.
(6) Licenses issued pursuant to this section shall remain in effect for one (1) year unless:
(a) The licensee fails to pay fees required by law for the continuance or renewal of its license;
(b) The licensee withdraws from the state; or
(c) The license is suspended or revoked.
The commissioner may at any time, after a hearing to be conducted in accordance with the provisions of this chapter and KRS § 304.2-310, revoke or suspend the license of an advisory organization, statistical agent, or form provider which does
not comply with the requirements and standards of this chapter.
(7) The commissioner shall by administrative regulation establish a written summary of information that shall be included in an application for licenses issued under this section.
(8) Advisory organizations wishing to operate as statistical agents or form providers may be so authorized under their license as an advisory organization. A separate license is not required.
(9) Each advisory organization, statistical agent, and form provider shall pay fees as required by KRS § 304.4-010 for the application, continuance, or renewal of its license.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1125, effective July 15, 2010. — Repealed and reenacted 2000 Ky. Acts ch. 380, sec. 6, effective July 14, 2000. — Created 1982 Ky. Acts ch. 278, sec. 9, effective July 15, 1982.
(2) No advisory organization, statistical agent, or form provider shall refuse to supply any services for which it is licensed in Kentucky to any insurer authorized to do business in Kentucky and offering to pay the fair and usual compensation for the services.
Terms Used In Kentucky Statutes 304.13-091
- advisory organization: is a ny entity, including its affiliates or subsidiaries, which either has two (2) or more member insurers or is controlled either directly or indirectly by two (2) or more insurers and which assists insurers in ratemaking related activities. See Kentucky Statutes 304.13-011
- agent: includes managing general agent unless the context requires otherwise. See Kentucky Statutes 304.9-085
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Continuance: Putting off of a hearing ot trial until a later time.
- Form provider: means a person who prepares, files, and distributes policy contract forms and endorsements and consults with members, subscribers, customers, or others relative to their use and application, but is not an advisory organization as defined in this subtitle. See Kentucky Statutes 304.13-011
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Statistical agent: means an entity that has been licensed by the commissioner to collect statistics from insurers and provide reports developed from these statistics to the commissioner for the purpose of fulfilling the statistical reporting obligations of those insurers under this chapter. See Kentucky Statutes 304.13-011
- Year: means calendar year. See Kentucky Statutes 446.010
(3) An advisory organization, statistical agent, or form provider applying for a license shall include with its application:
(a) A copy of its constitution, charter, articles of organization, agreement, association or incorporation, bylaws, plan of operation, and any other rules or regulations governing the conduct of its business;
(b) A list of its members, subscribers, and customers;
(c) The name and address of one (1) or more residents of Kentucky upon whom notices, process affecting it, or orders of the commissioner may be served;
(d) A statement showing its technical qualifications for acting in the capacity for which it seeks a license;
(e) A biography of the ownership and management of the organization; and
(f) Any other relevant information and documents that the commissioner may require.
(4) Every organization which has applied for a license shall notify the commissioner of every material change in the facts or in the documents on which its application was based. Any amendment to a document filed under this section shall be filed at least thirty (30) days before it becomes effective.
(5) If the commissioner finds that the applicant and the natural persons through whom it acts are competent, trustworthy, and technically qualified to provide the services proposed, and that all requirements of the law are met, he or she shall issue a license specifying the authorized activity of the applicant. The commissioner shall not issue a license if the proposed activity would tend to create a monopoly or to substantially lessen the competition in any market. At the request of the licensee, licenses issued under this section may be renewed on an annual basis.
(6) Licenses issued pursuant to this section shall remain in effect for one (1) year unless:
(a) The licensee fails to pay fees required by law for the continuance or renewal of its license;
(b) The licensee withdraws from the state; or
(c) The license is suspended or revoked.
The commissioner may at any time, after a hearing to be conducted in accordance with the provisions of this chapter and KRS § 304.2-310, revoke or suspend the license of an advisory organization, statistical agent, or form provider which does
not comply with the requirements and standards of this chapter.
(7) The commissioner shall by administrative regulation establish a written summary of information that shall be included in an application for licenses issued under this section.
(8) Advisory organizations wishing to operate as statistical agents or form providers may be so authorized under their license as an advisory organization. A separate license is not required.
(9) Each advisory organization, statistical agent, and form provider shall pay fees as required by KRS § 304.4-010 for the application, continuance, or renewal of its license.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1125, effective July 15, 2010. — Repealed and reenacted 2000 Ky. Acts ch. 380, sec. 6, effective July 14, 2000. — Created 1982 Ky. Acts ch. 278, sec. 9, effective July 15, 1982.