Kentucky Statutes 304.45-050 – Purchasing groups — Exemptions from certain laws regarding liability insurance
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A purchasing group and its insurer or insurers shall be subject to all applicable laws of this state, except that a purchasing group and its insurer or insurers shall be exempt from any law regarding liability insurance for the purchasing group that would:
(1) Prohibit the establishment of a purchasing group;
(2) Make it unlawful for an insurer to provide or offer to provide to a purchasing group or its members insurance on a basis that provides advantages based on the purchasing group’s loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages, or other matters;
(3) Prohibit a purchasing group or its members from purchasing insurance on a group basis described in subsection (2) of this section;
(4) Prohibit a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time;
(5) Require that a purchasing group have a minimum number of members, common ownership or affiliation, or certain legal form;
(6) Require that a certain percentage of a purchasing group obtain insurance on a group basis;
(7) Otherwise discriminate against a purchasing group or any of its members; or
(8) Require that any insurance policy issued to a purchasing group or any of its members be countersigned by an insurance agent or broker residing in this state.
Effective: January 1, 2018
History: Repealed and reenacted 2017 Ky. Acts ch. 16, sec. 5, effective January 1,
2018. — Amended 2010 Ky. Acts ch. 166, sec. 13, effective July 15, 2010. — Amended 1990 Ky. Acts ch. 165, sec. 5, effective July 13, 1990. — Created 1986 Ky. Acts ch. 308, sec. 5, effective July 15, 1986.
(1) Prohibit the establishment of a purchasing group;
Terms Used In Kentucky Statutes 304.45-050
- agent: includes managing general agent unless the context requires otherwise. See Kentucky Statutes 304.9-085
- Insurance: means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risks which is determined to be insurance under the laws of this state. See Kentucky Statutes 304.45-020
- Purchasing group: means any group which:
(a) Has as one (1) of its purposes the purchase of liability insurance on a group basis. See Kentucky Statutes 304.45-020 - State: means any state of the United States or the District of Columbia. See Kentucky Statutes 304.45-020
(2) Make it unlawful for an insurer to provide or offer to provide to a purchasing group or its members insurance on a basis that provides advantages based on the purchasing group’s loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages, or other matters;
(3) Prohibit a purchasing group or its members from purchasing insurance on a group basis described in subsection (2) of this section;
(4) Prohibit a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time;
(5) Require that a purchasing group have a minimum number of members, common ownership or affiliation, or certain legal form;
(6) Require that a certain percentage of a purchasing group obtain insurance on a group basis;
(7) Otherwise discriminate against a purchasing group or any of its members; or
(8) Require that any insurance policy issued to a purchasing group or any of its members be countersigned by an insurance agent or broker residing in this state.
Effective: January 1, 2018
History: Repealed and reenacted 2017 Ky. Acts ch. 16, sec. 5, effective January 1,
2018. — Amended 2010 Ky. Acts ch. 166, sec. 13, effective July 15, 2010. — Amended 1990 Ky. Acts ch. 165, sec. 5, effective July 13, 1990. — Created 1986 Ky. Acts ch. 308, sec. 5, effective July 15, 1986.