Kentucky Statutes 304.9-4332 – Requirements for funds received or held by public adjuster
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(1) All funds received or held by a public adjuster on behalf of an insured toward the settlement of a claim shall be:
(a) Handled in a fiduciary capacity; and
(b) Deposited into one (1) or more separate noninterest-bearing fiduciary trust accounts in a financial institution licensed to do business in this state no later than the close of the second business day from the receipt of the funds.
(2) The funds referenced in subsection (1) of this section shall:
(a) Be held separately from any personal or nonbusiness funds; (b) Not be commingled or combined with other funds;
(c) Be reasonably ascertainable from the books of accounts and records of the public adjuster; and
(d) Be disbursed within thirty (30) calendar days of any invoice received by the public adjuster upon approval of the insured or the claimant that the work has been satisfactorily completed.
(3) A public adjuster shall maintain an accurate record and itemization of any funds deposited into an account under subsection (1) of this section in accordance with KRS § 304.9-435.
Effective: June 29, 2023
History: Created 2023 Ky. Acts ch. 11, sec. 4, effective June 29, 2023.
(a) Handled in a fiduciary capacity; and
Terms Used In Kentucky Statutes 304.9-4332
- Fiduciary: A trustee, executor, or administrator.
- Public adjuster: means any person who, for compensation or anything of value:
(a) Acts on behalf of an insured or aids an insured, solely in relation to first-party claims arising under insurance contracts that insure the real or personal property of the insured, in negotiating for, or effecting the settlement of, a claim for loss or damage covered by an insurance contract. See Kentucky Statutes 304.9-020 - 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.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(b) Deposited into one (1) or more separate noninterest-bearing fiduciary trust accounts in a financial institution licensed to do business in this state no later than the close of the second business day from the receipt of the funds.
(2) The funds referenced in subsection (1) of this section shall:
(a) Be held separately from any personal or nonbusiness funds; (b) Not be commingled or combined with other funds;
(c) Be reasonably ascertainable from the books of accounts and records of the public adjuster; and
(d) Be disbursed within thirty (30) calendar days of any invoice received by the public adjuster upon approval of the insured or the claimant that the work has been satisfactorily completed.
(3) A public adjuster shall maintain an accurate record and itemization of any funds deposited into an account under subsection (1) of this section in accordance with KRS § 304.9-435.
Effective: June 29, 2023
History: Created 2023 Ky. Acts ch. 11, sec. 4, effective June 29, 2023.