Chapter 15 Kentucky State Law
Agent - Answer-An individual or business entity that has been appointed by an insurer to sell or solicit
applications for insurance or annuities or to negotiate insurance or annuities on its behalf.
Producer - Answer-A person or business entity required to be licensed under the laws of Kentucky to
sell, solicit or negotiate insurance.
Adjuster - Answer-Any person who for compensation, adjusts, investigates or negotiates settlement of
claims on behalf of either the insurer or the insured.
Independent Adjuster - Answer-An adjuster who acts solely on behalf of insurers.
Public Adjuster - Answer-An adjuster who acts sole on behalf of persons claiming benefits under
insurance or annuity contracts.
Managing General Agent - Answer-Any person or business entity that is licensed in property and
casualty lines of authority or as a surplus lines broker and:
a. Negotiates insurance contracts on behalf of an insurer.
,b. Solicits applications from agents for insurance contracts.
c. Effectuate and countersign insurance contracts for an insurer.
Limited Line Credit Insurance Producer - Answer-A person who sells, solicits, or negotiates 1 or more of
the following forms of limited line credit insurance:
a. Credit life and disability insurance.
b. Credit property insurance.
c. Credit unemployment insurance.
d. Involuntary unemployment insurance.
e. Mortgage life, disability and guaranty insurance.
f. Guaranteed automobile protection gap insurance.
g. Any other line of insurance that the Commissioner considers necessary to recognize as limited line
credit insurance.
Insurance Consultant - Answer-An individual who for a fee examines, reviews, evaluates, makes
recommendations, or gives advice regarding any insurance policy. Consultants must meet the same
application and financial requirements as do producers. In addition, consultants must have at least 5
years of actual experience as a licensed agent in the lines of insurance the consulting license will cover.
, In lieu of that, a consultant must have special experience, education or training sufficient to make the
applicant competent for the responsibilities of a consultant
Business Entities - Answer-Any corporation, association, partnership, limited liability company, limited
liability partnership or other legal entity.
Temporary License - Answer-The Commissioner of Insurance may issue a temporary insurance agent
license for a period not exceeding 180 days, without requiring an examination, in the following
circumstances:
The surviving spouse or court-appointed personal representative of a licensed insurance agent who dies
or becomes mentally or physically disabled
b. Any member or employee of a business entity licensed as an insurance agent, upon the death or
disability of an individual, designated in such business entity's application or the insurance agent's
license.
c. The designee of an individual licensed as an insurance agent who is entering active service in the
armed forces of the United States.
d. Any other circumstance where the Commissioner deems that issuing a temporary license will best
serve the public interest.
e. The Commissioner may require the temporary licensee to have a licensed agent or insurer as a
suitable sponsor who assumes responsibility for all temporary licensee's acts. The Commissioner may
also impose other similar requirements and the temporary license may be revoked if the insured's or
public's interest is endangered. A temporary license shall not continue after the owner or the personal
representative disposes of the business.
Agent - Answer-An individual or business entity that has been appointed by an insurer to sell or solicit
applications for insurance or annuities or to negotiate insurance or annuities on its behalf.
Producer - Answer-A person or business entity required to be licensed under the laws of Kentucky to
sell, solicit or negotiate insurance.
Adjuster - Answer-Any person who for compensation, adjusts, investigates or negotiates settlement of
claims on behalf of either the insurer or the insured.
Independent Adjuster - Answer-An adjuster who acts solely on behalf of insurers.
Public Adjuster - Answer-An adjuster who acts sole on behalf of persons claiming benefits under
insurance or annuity contracts.
Managing General Agent - Answer-Any person or business entity that is licensed in property and
casualty lines of authority or as a surplus lines broker and:
a. Negotiates insurance contracts on behalf of an insurer.
,b. Solicits applications from agents for insurance contracts.
c. Effectuate and countersign insurance contracts for an insurer.
Limited Line Credit Insurance Producer - Answer-A person who sells, solicits, or negotiates 1 or more of
the following forms of limited line credit insurance:
a. Credit life and disability insurance.
b. Credit property insurance.
c. Credit unemployment insurance.
d. Involuntary unemployment insurance.
e. Mortgage life, disability and guaranty insurance.
f. Guaranteed automobile protection gap insurance.
g. Any other line of insurance that the Commissioner considers necessary to recognize as limited line
credit insurance.
Insurance Consultant - Answer-An individual who for a fee examines, reviews, evaluates, makes
recommendations, or gives advice regarding any insurance policy. Consultants must meet the same
application and financial requirements as do producers. In addition, consultants must have at least 5
years of actual experience as a licensed agent in the lines of insurance the consulting license will cover.
, In lieu of that, a consultant must have special experience, education or training sufficient to make the
applicant competent for the responsibilities of a consultant
Business Entities - Answer-Any corporation, association, partnership, limited liability company, limited
liability partnership or other legal entity.
Temporary License - Answer-The Commissioner of Insurance may issue a temporary insurance agent
license for a period not exceeding 180 days, without requiring an examination, in the following
circumstances:
The surviving spouse or court-appointed personal representative of a licensed insurance agent who dies
or becomes mentally or physically disabled
b. Any member or employee of a business entity licensed as an insurance agent, upon the death or
disability of an individual, designated in such business entity's application or the insurance agent's
license.
c. The designee of an individual licensed as an insurance agent who is entering active service in the
armed forces of the United States.
d. Any other circumstance where the Commissioner deems that issuing a temporary license will best
serve the public interest.
e. The Commissioner may require the temporary licensee to have a licensed agent or insurer as a
suitable sponsor who assumes responsibility for all temporary licensee's acts. The Commissioner may
also impose other similar requirements and the temporary license may be revoked if the insured's or
public's interest is endangered. A temporary license shall not continue after the owner or the personal
representative disposes of the business.
