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KENTUCKY
DEPARTMENT OF INSURANCE
NOW LICENSES BUSINESS ENTITIES FOR SURPLUS LINES
The Kentucky Department of Insurance now licenses agencies (business
entities) for a Surplus Lines Broker insurance license. If an agency
is receiving commissions related to surplus lines insurance sales
through its producers/brokers, the agency is required to hold a
Surplus Lines Broker insurance license in Kentucky. Basic requirements
for obtaining a Surplus Lines Broker insurance license in the State
of Kentucky include the following:
- The agency must hold
a surplus lines broker license in the resident state of the agency.
- The agency must hold
a current property & casualty insurance license in Kentucky.
- The designated producer
for the agency must hold a surplus lines license in their respective
resident state.
- The designated producer
for the agency must hold a current property & casualty license
in their respective resident state.
- The designated producer
for the agency must hold a surplus lines license in the State
of Kentucky.
- A Resident agency
must show proof of financial responsibility in the sum of not
less than $1,000,000.00 per occurrence and $2,000,000.00 in the
aggregate. Proof of financial responsibility includes: Errors
& Omissions policy, a Letter of Credit, or a Surety Bond.
Non-Resident agencies are not required to show proof of financial
responsibility.
- The authorized carrier
will be required to issue a $50,000.00 Penal Bond.
- The agency must be
registered with the Kentucky Secretary of State.
- The license fee is
$120.00 for non-resident entities. The resident agency license
fee is $100.00.
- The agency license
renewal fee will be $100.00 for resident and non-resident entities.
- The Surplus Lines
Broker Business Entity license renewal date will be March 31st
(of odd years if licensed in an odd year and in even years if
licensed in an even year).
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