An insurer shall not in any manner guarantee the payment of the principal or the interest of bonds or other obligations executed by others, other than (a) in connection with the handling of litigation relating to losses or claims involving the insurer, its insureds, its agents or its attorneys, or (b) in connection with the settlement of such losses or claims, or (c) in the event such guarantee is specifically approved by the commissioner.
Effective: July 15, 2010

Terms Used In Kentucky Statutes 304.22-040

  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.

History: Amended 2010 Ky. Acts ch. 24, sec. 1321, effective July 15, 2010. — Amended 1972 Ky. Acts ch. 318, sec. 1, effective June 16, 1972. — Created 1970 Ky. Acts ch. 301, subtit. 22, sec. 4, effective June 18, 1970.

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