AN ACT relating to public protection and declaring an emergency.

UNOFFICIAL COPY 26 RS HB 568/EN
Page 1 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
AN ACT relating to public protection and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 304.9-020 is amended to read as follows: 3
As used in this subtitle: 4
(1) "Agent" means a person who sells, solicits, or negotiates insurance or annuity 5
contracts; 6
(2) "Appointment" means a notification filed with the insurance department that an 7
insurer has established an agency relationship with a producer; 8
(3) "Appointment renewal" means continuation of an insurer's existing appointment 9
based on payment of the required fee without submission of an appointment form; 10
(4) "Apprentice adjuster" means an individual who meets the qualification 11
requirements to hold a license as an independent, staff, or public adjuster, except for 12
the experience, education, and training requirements; 13
(5) "Business entity" means a corporation, association, partnership, limited liability 14
company, limited liability partnership, employer gr oup, professional employer 15
organization, or other legal entity; 16
(6) "Catastrophe" means an event that results in a declaration of emergency by the 17
Governor pursuant to KRS 39A.100 and: 18
(a) A large number of deaths or injuries; 19
(b) Extensive damage or destr uction of facilities that provide and sustain human 20
needs; 21
(c) An overwhelming demand on state and local response resources and 22
mechanisms; 23
(d) A severe long-term effect on general economic activity; or 24
(e) A severe effect on state, local, and private sect or capabilities to begin and 25
sustain response activities; 26
(7) "Crop insurance" means insurance providing protection against damage to crops 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 2 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
from unfavorable weather conditions, fire or lightning, flood, hail, insect 1
infestation, disease, or other yield -reducing conditions or perils provided by the 2
private insurance market or that is subsidized by the Federal Crop Insurance 3
Corporation, including multi-peril crop insurance; 4
(8) "Home state" means the District of Columbia and any state or territory of the 5
United States in which a licensee maintains his or her principal place of residence 6
or principal place of business and is licensed by that state; 7
(9) "Independent adjuster" means a person who: 8
(a) Is an independent contractor, an employee of an independent contractor, or for 9
tax purposes is treated as an independent contractor under Subtitle C of the 10
Internal Revenue Code, 26 U.S.C. secs. 3101 et seq.; 11
(b) Is compensated by an insurer or self-insurer; and 12
(c) Investigates, negotiates, or settles property, casu alty, or workers' 13
compensation claims for insurers or self-insurers; 14
(10) "Insurance producer": 15
(a) Means an individual or business entity required to be licensed under the laws 16
of Kentucky to sell, solicit, or negotiate insurance or annuity contracts; and[.] 17
(b) ["Insurance producer" ] Includes an agent, managing general agent, surplus 18
lines broker, reinsurance intermediary broker and manager, rental vehicle 19
agent and rental vehicle agent managing employee, and consultant; 20
(11) "Limited line credit insurance" includes credit life, credit disability, credit property, 21
credit unemployment, involuntary unemployment, mortgage life, mortgage 22
guaranty, mortgage disability, guaranteed automobile protection insurance, and any 23
other form of insurance offered in connec tion with an extension of credit that is 24
limited to partially or wholly extinguishing that credit obligation that the 25
commissioner determines should be designated a form of limited line credit 26
insurance; 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 3 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(12) "Limited line credit insurance agent" means an individual or business entity who 1
sells, solicits, or negotiates one (1) or more forms of limited line credit insurance 2
coverage to individuals through a master, corporate, group, or individual policy; 3
(13) "Limited lines insurance" means: 4
(a) The lines of insurance defined in subsections (7), (11), (22), (27), and (29) of 5
this section; and 6
(b) Any other line of insurance that the commissioner identifies in accordance 7
with KRS 304.9 -230(1)(g) or recognizes for the purpose of complying with 8
KRS 304.9-140(5); 9
(14) "Negotiate": 10
(a) Means the act of conferring directly with, or offering advice directly to, a 11
purchaser or prospective purchaser of a particular contract of insurance 12
concerning any of the substantive benefits, terms, or conditions of the 13
contract, provided that the person engaged in that act either sells insurance or 14
obtains insurance from insurers for purchasers; and[.] 15
(b) Unless the context requires otherwise, ["Negotiate"] does not include 16
negotiating a claims settlement; 17
(15) "Pharmacy benefit ma nager" means an entity that, on behalf of a health benefit 18
plan, state agency, insurer, managed care organization providing services under 19
KRS Chapter 205, or other third-party payor: 20
(a) Contracts directly or indirectly with pharmacies to provide prescrip tion drugs 21
to individuals; 22
(b) Administers a prescription drug benefit; 23
(c) Processes or pays pharmacy claims; 24
(d) Creates or updates prescription drug formularies; 25
(e) Makes or assists i n making prior authorization determinations on prescription 26
drugs; 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 4 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(f) Administers rebates on prescription drugs; or 1
(g) Establishes a pharmacy network; 2
(16) "Portable electronics" means electronic devices that are portable and the accessories 3
and services related to the use of the device; 4
(17) [(a) ]"Portable electronics insurance": 5
(a) Means insurance providing coverage for the repair or replacement of portable 6
electronics for any one (1) or more of the following: 7
1. Loss; 8
2. Theft; 9
3. Inoperability due to mechanical failure; 10
4. Malfunction; 11
5. Damage; or 12
6. Other similar causes of loss; and[.] 13
(b) ["Portable electronics insurance" ]Does not include[mean]: 14
1. A service contract governed by KRS 304.5-070; 15
2. A policy of insurance covering a seller's or manu facturer's obligations 16
under a warranty; or 17
3. A homeowner's, renter's, private passenger automobile, commercial 18
multi-peril, or similar policy; 19
(18) "Portable electronics insurance supervising entity" means a business entity that is a 20
licensed insurer or insurance agent that is appointed by an insurer to supervise the 21
administration of a portable electronics insurance program; 22
(19) "Portable electronics retailer" means a licensed business entity that offers and sells 23
portable electronic devices and offers and disseminates portable electronics 24
insurance on behalf and under the direction of a portable electronics insurance 25
supervising entity; 26
(20) "Public adjuster": 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 5 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(a) Means any person who[, for compensation or anything of value]: 1
1.[(a)] For compensation or reward paid by or on behalf of an insured, 2
renders advice or assistance to the insured in a first -party claim for 3
loss or damages under any policy, certificate, or contract of insurance 4
covering real or personal property [Acts on behalf of an insured or ai ds 5
an insured, solely in relation to first-party claims arising under insurance 6
contracts that insure the real or personal property of the insured, in 7
negotiating for, or effecting the settlement of, a claim for loss or damage 8
covered by an insurance contract]; or 9
2.[(b)] Advertises, solicits business, or holds itself out to the public as an 10
adjuster described in subparagraph 1. of this paragraph [ for 11
employment as a public adjuster of insurance claims, solicits business or 12
represents himself, herself, or i tself to the public as a public adjuster of 13
first-party insurance claims for losses or damages arising out of policies 14
of insurance that insure real or personal property; or 15
(c) Directly or indirectly solicits business, investigates or adjusts losses, advi ses 16
an insured about first -party claims for losses or damages arising out of 17
policies of insurance that insure real or personal property for another person, 18
or engages in the business of adjusting losses or damages covered by an 19
insurance policy for the insured]; and 20
(b) Does not include: 21
1. An attorney licensed to practice law in Kentucky, when acting in his or 22
her professional capacity as an attorney; or 23
2. A person employed only for the purpose of obtaining facts 24
surrounding a loss or furnishing technical assistance to a licensed 25
public adj uster, including photographers, estimators, private 26
investigators, engineers, and handwriting experts; 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 6 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(21) "Rental vehicle agent" means a business entity with a rental vehicle agent managing 1
employee that is licensed to sell, solicit, or negotiate insuran ce offered, sold, or 2
solicited in connection with, and incidental to, the rental of rental vehicles, whether 3
at the rental office or by preselection of coverage in master, corporate, or group 4
agreements that: 5
(a) Are nontransferable; 6
(b) Apply only to the rental vehicle that is the subject of the rental agreement; and 7
(c) Are limited to the following kinds of insurance: 8
1. Personal accident insurance for renters and other rental vehicle 9
occupants for accidental death or dismemberment and for medical 10
expenses resulting from an accident that occurs with the rental vehicle 11
during the rental period; 12
2. Liability insurance that provides protection to the renters and other 13
authorized drivers of a rental vehicle for liability arising from the 14
operation or use of the rental vehicle during the rental period; 15
3. Personal effects insurance that provides coverage to renters and other 16
vehicle occupants for loss of or damage to personal effects in the rental 17
vehicle during the rental period; 18
4. Roadside assistance insurance; 19
5. Emergency sickness protection insurance; or 20
6. Any other coverage designated by the commissioner; 21
(22) "Rental vehicle insurance" means insurance underwritten by an insurer authorized 22
to transact business in Kentucky that is sold in connection with, and incidental to, a 23
rental vehicle agreement; 24
(23) "Rental vehicle agent managing employee" means an individual who: 25
(a) Is a salaried full -time employee of a licensed rental vehicle agent business 26
entity that holds a license under KRS 304.9-505; and 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 7 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(b) Is responsible for the supervision of the other employees engaged in the 1
placement of insurance; 2
(24) "Sell" means to exchange a contract of insurance by any means, for money or other 3
valuable consideration, on behalf of an insurer; 4
(25) "Solicit" means at tempting to sell insurance or asking or urging a person to apply 5
for a particular kind of insurance from a particular insurer; 6
(26) "Staff adjuster" means an individual who is an employee of an insurer who 7
investigates, negotiates, or settles property, cas ualty, or workers' compensation 8
claims on behalf of his or her employer; 9
(27) "Surety" means insurance or bond that covers obligation to pay the debts of, or 10
answer for the default of another, including faithlessness in a position of public or 11
private trust. Surety also includes surety insurance as defined in KRS 304.5-060; 12
(28) "Terminate" means the cancellation of the relationship between an insurance 13
producer and the insurer or the termination of an insurance producer's authority to 14
transact insurance; 15
(29) "Travel insurance" has the same meaning as in KRS 304.52-010; 16
(30) "Uniform business entity application" means the current version of the uniform 17
business entity application for resident and nonresident business entities; and 18
(31) "Uniform individual a pplication" means the current version of the uniform 19
individual application for resident and nonresident individuals. 20
Section 2. KRS 304.9-430 is amended to read as follows: 21
(1) (a) Except as provided in this section and KRS 304.52 -060, no person shall in 22
this state act as or hold himself, herself, or itself out to be an independent, 23
staff, or public adjuster unless then license d by the department as an 24
independent, staff, or public adjuster. 25
(b) Except as provided in paragraph (c) of this subsection and for a period of 26
two (2) years beginning on the effective date of this section of this Act: 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 8 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
1. An application for a public adjuster license shall not be accepted or 1
approved by the commissioner; and 2
2. The department shall not issue public adjuster licenses. 3
(c) A person who has a temporary or apprentice adjuster license in effect on the 4
effective date of this section of this Act may apply for and be issued a public 5
adjuster license in accordance with Section 3 of this Act. 6
(d) A public adjuster license in effect on the effective date of this section of this 7
Act: 8
1. May be renewed by the licensee in accordance with the requirements 9
of this subtitle; and 10
2. Shall continue in force until expired, suspended, revoked, or otherwise 11
terminated. 12
(2) (a) An individual applying for a resident independent, staff, or public adjuster 13
license shall make an application to the commissioner on the appropriate 14
uniform individual application and in a format prescribed b y the 15
commissioner. 16
(b) An applicant under paragraph (a) of this subsection shall declare under 17
penalty of suspension, revocation, or refusal of the license that the statements 18
made in the application are true, correct, and complete to the best of the 19
individual's knowledge and belief. 20
(c) [Before approving an application submitted under paragraph (a) of this 21
subsection, ] The commissioner shall not approve an application submitted 22
under paragraph (a) of this subsection unless the commissioner finds [find] 23
that the individual to be licensed: 24
1. Is at least eighteen (18) years of age; 25
2. Is eligible to designate Kentucky as the individual's home state; 26
3. Is trustworthy, reliable, and of good reputation, evidence of which shall 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 9 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
be determined through an investigation by the commissioner; 1
4. Has not committed any act that is a ground for probation, suspension, 2
revocation, or refusal of a license as set forth in KRS 304.9-440; 3
5. Has successfully passed the examination for the adjuster license and the 4
applicable line of authority for which the individual has applied; 5
6. Has paid the fees established by the commissioner pursuant to KRS 6
304.4-010; and 7
7. Is financially responsible to exercise the license. 8
(3) (a) To demonstrate financial responsibility, a person apply ing for a public 9
adjuster license shall obtain a bond or irrevocable letter of credit prior to 10
issuance of a license and shall maintain the bond or letter of credit for the 11
duration of the license with the following limits: 12
1. A surety bond executed and is sued by an insurer authorized to issue 13
surety bonds in Kentucky, which bond shall: 14
a. Be in the minimum amount of fifty thousand dollars ($50,000); 15
b. Be in favor of the state of Kentucky; 16
c. Specifically authorize recovery of any person in Kentucky who 17
sustained damages as the result of the public adjuster's erroneous 18
acts, failure to act, conviction of fraud, or conviction for unfair 19
trade practices in his or her capacity as a public adjuster; and 20
d. Not be terminated unless written notice is given to the licensee at 21
least thirty (30) days prior to the termination; or 22
2. An irrevocable letter of credit issued by a qualified financial institution, 23
which letter of credit shall: 24
a. Be in the minimum amount of fifty thousand dollars ($50,000); 25
b. Be subject to lawful levy of execution on behalf of any person to 26
whom the public adjuster has been found to be legally liable as the 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 10 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
result of erroneous acts, failure to act, conviction of fraud, or 1
conviction for unfair practices in his or her capacity as a public 2
adjuster; and 3
c. Not be terminated unless written notice is given to the licensee at 4
least thirty (30) days prior to the termination. 5
(b) The commissioner may ask for evidence of financial responsibility at any time 6
the commissioner deems relevant. 7
(c) If the evidence of financial responsibility terminates or becomes impaired, the 8
public adjuster license shall: 9
1. Automatically terminate; and 10
2. Be promptly surrendered to the commissioner without demand. 11
(4) (a) A business entity applying for a resident independent or public adjuster 12
license shall make an application to the commissioner on the appropriate 13
uniform business entity application a nd in a format prescribed by the 14
commissioner. 15
(b) An applicant under paragraph (a) of this subsection shall declare under 16
penalty of suspension, revocation, or refusal of the license that the statements 17
made in the application are true, correct, and compl ete to the best of the 18
business entity's knowledge and belief. 19
(c) [Before approving an application submitted under paragraph (a) of this 20
subsection, ] The commissioner shall not approve an application submitted 21
under paragraph (a) of this subsection unless the commissioner finds [find] 22
that the business entity: 23
1. Is eligible to designate Kentucky as its home state; 24
2. Has designated a licensed independent or public adjuster responsible for 25
the business entity's compliance with the insurance laws and 26
administrative regulations of Kentucky; 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 11 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
3. Has not committed an act that is a ground for probation, suspension, 1
revocation, or refusal of an independent or public adjuster's license as 2
set forth in KRS 304.9-440; and 3
4. Has paid the fees established by the commis sioner pursuant to KRS 4
304.4-010. 5
(5) For applications made under this section, the commissioner may: 6
(a) Require additional information or submissions from applicants; and 7
(b) Obtain any documents or information reasonably necessary to verify the 8
information contained in an application. 9
(6) [Unless denied licensure pursuant to KRS 304.9 -440, ]A person or business entity 10
who has met the applicable requirements of subsections (2) to (5) of this section 11
shall be issued an independent, staff, or public adjuster license unless the person or 12
business entity is denied licensure pursuant to Section 8 of this Act. 13
(7) An independent or staff adjuster may qualify for a license in one (1) or more of the 14
following lines of authority: 15
(a) Property and casualty; 16
(b) Workers' compensation; or 17
(c) Crop. 18
(8) Notwithstanding any other provision of this subtitle, an individual who is employed 19
by an insurer to investigate suspected fraudulent insurance claims, but who does not 20
adjust losses or determine claims payments, shall not be required to be licensed as a 21
staff adjuster. 22
(9) A public adjuster may qualify for a license in one (1) or more of the following lines 23
of authority: 24
(a) Property and casualty; or 25
(b) Crop. 26
(10) Notwithstanding any other provision of this subtitle, a license as an independent 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 12 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
adjuster shall not be required of the following: 1
(a) An individual who is sent into Kentucky on behalf of an insurer for the sole 2
purpose of investigating or making adjustment of a particular loss resulting 3
from a catastrophe, or for the adjustment of a series of losses resulting from a 4
catastrophe common to all losses; 5
(b) An attorney licensed to practice law in Kentucky, when acting in his or her 6
professional capacity as an attorney; 7
(c) A person employed solely to obtain facts surrounding a claim or to furnish 8
technical assistance to a licensed independent adjuster; 9
(d) An individual who is employed to investigate suspected fraudulent insurance 10
claims, but who does not adjust losses or determine claims payments; 11
(e) A person who: 12
1. Solely performs executive, administrative, managerial, or clerical duties, 13
or any combination thereof; and 14
2. Does not investigate, negotiate, or settle claims with policyholders, 15
claimants, or their legal representatives; 16
(f) A licensed health care provider or its employee who provides managed care 17
services if the services do not include the determination of compensability; 18
(g) A health maintenance organization or any of its employees or an employee of 19
any organization providing managed care services if the services do not 20
include the determination of compensability; 21
(h) A person who settles only reinsurance or subrogation claims; 22
(i) An officer, director, manager, or employee of an authorized insurer, surplus 23
lines insurer, or risk retention group, or an attorney -in-fact of a reciprocal 24
insurer; 25
(j) A United States manager of the United States branch of an alien insurer; 26
(k) A person who investigates, negotiates, or settles claims arising under a life, 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 13 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
accident and health, or disability insurance policy or annuity contract; 1
(l) An individual employee, under a self -insured arrangem ent, who adjusts 2
claims on behalf of the individual's employer; 3
(m) A licensed agent, attorney-in-fact of a reciprocal insurer, or managing general 4
agent of the insurer, to whom claim authority has been granted by an insurer; 5
or 6
(n) 1. A person who: 7
a. Is an employee of a licensed independent adjuster, is an employee 8
of an affiliate that is a licensed independent adjuster, or is 9
supervised by a licensed independent adjuster, if there are no more 10
than twenty -five (25) persons under the supervision of one (1) 11
licensed individual independent adjuster or licensed agent who is 12
exempt from licensure pursuant to paragraph (m) of this 13
subsection; 14
b. Collects claim information from insureds or claimants; 15
c. Enters data into an automated claims adjudication system; and 16
d. Furnishes claim information to insureds or claimants from the 17
results of the automated claims adjudication system. 18
2. For purposes of this paragraph, "automated claims adjudication system" 19
means a preprogrammed computer system designed for the collect ion, 20
data entry, calculation, and system -generated final resolution of 21
consumer electronic products insurance claims that complies with claim 22
settlement practices pursuant to Subtitle 12 of KRS Chapter 304. 23
(11)[ Notwithstanding any other provision of this subtitle, a license as a public adjuster 24
shall not be required of the following: 25
(a) An attorney licensed to practice law in Kentucky, when acting in his or her 26
professional capacity as an attorney; 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 14 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(b) A person who negotiates or settles claims arising un der a life or health insurance 1
policy or an annuity contract; 2
(c) A person employed only for the purpose of obtaining facts surrounding a loss or 3
furnishing technical assistance to a licensed public adjuster, including 4
photographers, estimators, private in vestigators, engineers, and handwriting 5
experts; 6
(d) A licensed health care provider or its employee who prepares or files a health claim 7
form on behalf of a patient; or 8
(e) An employee or agent of an insurer adjusting claims relating to food spoilage with 9
respect to residential property insurance in which t he amount of coverage for the 10
applicable type of loss is contractually limited to one thousand dollars ($1,000) or 11
less. 12
(12)] Notwithstanding any other provision of this subtitle, a license as a staff adjuster 13
shall not be required of an employee or agent of an insurer adjusting claims relating 14
to food spoilage with respect to residential property insurance in which the amount 15
of coverage for the applicable type of loss is contractually limited to one thousand 16
dollars ($1,000) or less. 17
(12)[(13)] For purpo ses of this section, except as otherwise provided in subsection 18
(14)[(15)] of this section, "home state" means any state or territory of the United 19
States or the District of Columbia in which an independent, staff, or public adjuster: 20
(a) Maintains his, her, or its principal place of residence or business; and 21
(b) Is licensed to act as a resident independent, staff, or public adjuster. 22
(13)[(14)] Temporary registration for emergency independent or staff adjusters shall be 23
issued by the commissioner in the e vent of a catastrophe declared in Kentucky in 24
the following manner: 25
(a) An insurer shall notify the commissioner by submitting an application for 26
temporary emergency registration of each individual not already licensed in 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 15 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
the state where the catastrophe ha s been declared, who will act as an 1
emergency independent adjuster on behalf of the insurer; 2
(b) A person who is otherwise qualified to adjust claims, but who is not already 3
licensed in the state, may act as an emergency independent or staff adjuster 4
and a djust claims if, within five (5) days of deployment to adjust claims 5
arising from the catastrophe, the insurer notifies the commissioner by 6
providing the following information, in a format prescribed by the 7
commissioner: 8
1. The name of the individual; 9
2. The Social Security number of the individual; 10
3. The name of the insurer that the independent or staff adjuster will 11
represent; 12
4. The catastrophe or loss control number; 13
5. The catastrophe event name and date; and 14
6. Any other information the commissioner deems necessary; and 15
(c) An emergency independent or staff adjuster's registration shall remain in force 16
for a period not to exceed ninety (90) days, unless extended by the 17
commissioner. 18
(14)[(15)] (a) As used in this subsection, "home state" has the same meaning as in 19
subsection (12)[(13)] of this section, except that for purposes of this 20
subsection the term includes any state or territory of the United States or the 21
District of Columbia in which an applicant under this subsection is licensed to 22
act as a resident independent, staff, or public adjuster if the state or territory of 23
the applicant's principal place of residence does not issue an independent, 24
staff, or public adjuster license. 25
(b) [Unless refused licensure in accordance with KRS 304.9 -440, ]A nonresident 26
person shall receive a nonresident independent, staff, or public adjuster 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 16 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
license if: 1
1. The person is currently licensed in good standing as an independent, 2
staff, or public adjuster in his, her, or its home state; 3
2. The person has submitted th e proper request for licensure and has paid 4
the fees required by KRS 304.4-010; 5
3. The person has submitted, in a form or format prescribed by the 6
commissioner, the uniform individual application;[ and] 7
4. The person's designated home state issues nonresid ent independent, 8
staff, or public adjuster licenses to persons of Kentucky on the same 9
basis; and 10
5. The person is not denied licensure pursuant to Section 8 of this Act. 11
(c) The commissioner may: 12
1. Verify an applicant's licensing status through any appro priate database, 13
including the database maintained by the National Association of 14
Insurance Commissioners, its affiliates, or subsidiaries; or 15
2. Request certification of an applicant's good standing. 16
(d) As a condition to the continuation of a nonresident adjuster license, the 17
licensee shall maintain a resident adjuster license in his, her, or its home state. 18
(e) A nonresident adjuster license issued under this subsection shall terminate and 19
be surrendered immediately to the commissioner if the licensee's resident 20
adjuster license terminates for any reason, unless: 21
1. The termination is due to the licensee being issued a new resident 22
independent, staff, or public adjuster license in his, her, or its new hom e 23
state; and 24
2. The new resident state or territory has reciprocity with Kentucky. 25
Section 3. KRS 304.9-432 is amended to read as follows: 26
(1) In the event that an applicant for an adjuster's license meets the qualificat ion 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 17 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
requirements of KRS 304.9 -430 except that he or she has not had experience or 1
special education or training as to the handling of loss claims under insurance 2
contracts of sufficient duration and extent to make him or her reasonably confident 3
to fulfill the responsibilities as an adjuster, he or she shall not be required to take 4
and successfully complete the prescribed written examination and may be issued a 5
temporary license as an apprentice adjuster for a period not to exceed twelve (12) 6
months. 7
(2) A temporary license as an apprentice adjuster shall be subject to the following 8
terms and conditions: 9
(a) An individual holding a temporary license as apprentice adjuster shall have all 10
of the privileges and obligations of an adjuster licensed under the insu rance 11
code; 12
(b) An individual holding a temporary license as an apprentice adjuster shall at all 13
times be a full-time salaried employee of an insurer or an adjuster and subject 14
to training, direction, and control by a licensed adjuster acting in the same 15
capacity as that for which the applicant applied; 16
(c) A temporary license as apprentice adjuster shall be subject to suspension, 17
revocation, or conditions in accordance with KRS 304.9-440; and 18
(d) An individual may hold only one (1) temporary license as an apprentice 19
adjuster. 20
(3) An individual applying for a resident apprentice adjuster license shall make 21
application to the commissioner on the appropriate uniform individual application, 22
in a format prescribed by the commissioner, and declare under penalty o f 23
suspension, revocation, or refusal of the license that the statements made in the 24
application are true, correct, and complete to the best of the individual's knowledge 25
and belief. [Before approving the application, ]The commissioner shall not approve 26
an application for a resident apprentice adjuster license unless the commissioner 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 18 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
determines that[determine whether] the applicant: 1
(a) Is at least eighteen (18) years of age; 2
(b) Is a resident of Kentucky and has designated Kentucky as his or her home 3
state; 4
(c) Has a business or mailing address in the state for acceptance of service of 5
process; 6
(d) Has not committed any act that is a ground for probation or suspension, 7
revocation, or denial of licensure as set forth in KRS 304.9-440; 8
(e) Is trustworthy, reli able, and of good reputation, evidence of which may be 9
determined by the commissioner; 10
(f) Has paid the fees prescribed by administrative regulation promulgated 11
pursuant to KRS 304.4-010; and 12
(g) Has provided an attestation from a licensed independent, sta ff, or public 13
adjuster with the same line of authority for which the apprentice has applied, 14
attesting that the apprentice adjuster shall be subject to training, direction, and 15
control by the licensed adjuster, and further certifying that the licensed 16
adjuster assumes responsibility for the actions of the apprentice in the 17
apprentice's capacity as an adjuster. 18
(4) The apprentice adjuster license shall be subject to the following terms and 19
conditions: 20
(a) The apprentice adjuster shall only be authorized to a djust claims in the state 21
that has issued the apprentice adjuster license; 22
(b) The apprentice adjuster shall be restricted to participation in the investigation, 23
settlement, and negotiation of claims subject to the review and final 24
determination of the claim by the supervising licensed adjuster; 25
(c) Compensation of an apprentice adjuster shall be on a salaried or hourly basis 26
only; 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 19 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(d) The apprentice adjuster shall not be required to pass the independent or public 1
adjuster examination, as required by KRS 304.9-430(2), to adjust claims as an 2
apprentice adjuster. At any time during the apprenticeship, the apprentice 3
adjuster may choose to take the examination required by KRS 304.9 -430(2) 4
and, if he or she passes the examination, the apprentice adjuster license shall 5
automatically terminate and an adjuster license shall be issued to that 6
individual in place thereof; and 7
(e) The apprentice adjuster license shall be for a time period not to exceed twelve 8
(12) months and is nonrenewable. 9
(5) The licensed independen t, staff, or public adjuster responsible for the apprentice 10
adjuster shall only supervise the activities of the apprentice adjuster as set forth in 11
this subtitle. 12
(6) Notwithstanding any other provision of this section and for a period of two (2) 13
years beginning on the effective date of this section of this Act: 14
(a) An application for a temporary or apprentice adjuster license from a person 15
that would be supervised by a public adjuster shall not be accepted or 16
approved by the commissioner; and 17
(b) The department shall not issue temporary or apprentice adjuster licenses to 18
a person that would be supervised by a public adjuster. 19
Section 4. KRS 304.9-433 is amended to read as follows: 20
(1) (a) Except as provided in paragraph (b) of this subsection, a public adjuster shall 21
not provide services to an insured until: 22
1. A written contract with the insured has been executed on a form that has 23
been prefiled with and approved by the commissioner; and 24
2. The rescission period required under subsection (8) of this section has 25
concluded. 26
(b) Subject to subsection (3) of Section 7 of this Act, the commissioner may 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 20 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
approve a form that allows a public ad juster to be compensated for services 1
provided to an insured prior to the: 2
1. Execution of the[a] written contract; or 3
2. Conclusion of the rescission period required under subsection (8) of 4
this section; 5
in emergency circumstances. 6
(c) [A contract between a public adjuster and an insured in violation of paragraph 7
(a) of this subsection shall not be enforceable in this state. 8
(d) ]A form prefiled with the commissioner by a public adjuster for approval 9
under paragraph (a) of this subsection shall be subject to disapproval by the 10
commissioner at any time if the form is found to: 11
1. Violate any provision of this chapter; 12
2. Contain or incorporate by reference any inconsistent, ambiguous, or 13
misleading clauses; or 14
3. Contain any title, heading, or other indication of its provisions which is: 15
a. Misleading; or 16
b. Printed in a size of typeface or manner of reproduction so as to be 17
substantially illegible. 18
(d)[(e)] A contract between a public adjuster and an insured that was executed 19
on a form that was prefiled with and approved by the commissioner under 20
paragraph (a) of this subsection prior to a disapproval of the form under 21
paragraph (c)2. or 3.[(d)] of this subsection shall be enforceable to the extent 22
allowed by: 23
1. Ordinary principles of contract; and 24
2. Any applicable state or federal laws implicated by the contract. 25
(2) A public adjuster shall ensure that all contracts between the public adjuster and 26
an[the] insured for services are in writing and contain the following[ terms]: 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 21 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(a) The legible full name of the adjuster signing the contract, as specified in the 1
department's licensing records; 2
(b) The adjuster's permanent home state business address and phone number; 3
(c) The license number issued to the adjuster by the department; 4
(d) A title of "Public Adjuster Contract"; 5
(e) The insured's full name, street address, insurer name, and policy number, if 6
known or upon notification; 7
(f) A description of the loss or damage and its location, if applicable; 8
(g) A description of services to be provided to the insured; 9
(h) The signatures of the adjuster and the insured; 10
(i) The date the contract was signed by: 11
1. The adjuster; and 12
2. The insured; 13
(j) Attestation language stating that the adjuster has a letter of credit or a surety 14
bond as required by KRS 304.9-430(3); 15
(k) The full salary, fee, commission, compensation, or other consideration the 16
adjuster is to receive for services, including but not limited to: 17
1. If the compensation is based on a percentage of the insurance settlement, 18
the exact percentage, which shall be in accordance with KRS 304.9 -19
4333; 20
2. The initial expenses to be reimbursed to the adjuster from the proceeds 21
of the claim payment, specified by type, with dollar estimates; and 22
3. Any additional expenses, if first approved by the insured; 23
(l) A statement that the adjuster shall not: 24
1. Give legal advice; or 25
2. Act on behalf of or aid any person in negotiating or settling a claim 26
relating to bodily injury, death, or noneconomic damages; 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 22 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(m) The process for rescinding the contract, including the date by which rescission 1
of the contract by the adjuster or the insured may occur;[ and] 2
(n) A statement that: 3
1. Clearly states in substance [ the following] : "Complaints regarding this 4
contract or regarding the public adjuster may be filed with the consumer 5
protection division of the Kentucky Department of Insurance[.]"; and 6
2. Contains the physical address, email address, and phone number for 7
the department; and 8
(o) A statement that clearly states in substance: "Any legal action arising out of 9
or related to this contract shall be heard only in the courts of, and governed 10
only by the laws of, the Commonwealth of Kentucky." 11
(3) (a) Compensation provisions in a contract between a public adjuster and an 12
insured shall not be redacted in any copy of the contract provided to the 13
commissioner. 14
(b) A redaction prohibited under paragraph (a) of this subsection shall constitute 15
an omission of material fact in violation of KRS 304.9-440 and 304.12-230. 16
(4) A contract between a public adjuster and an ins ured shall not contain any contract 17
term that: 18
(a) Allows the adjuster's percentage rate[fee] to be collected when money is due 19
from an insurer, but not paid; 20
(b) Allows the adjuster to collect the entire fee from the first check issued by an 21
insurer, rather than as a percentage of each check issued by an insurer; 22
(c) Requires an insured to authorize an insurer to issue a check only in the name 23
of the adjuster; 24
(d) Imposes collection costs or late fees; 25
(e) Allows the adjuster's rate of compensation to be increased based on the fact 26
that a claim is litigated; or 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 23 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(f) Precludes the adjuster from pursuing civil remedies. 1
(5) Prior to the signing of a contract with an insured, a public adjuster shall provide the 2
insured with a separate disclosure document regarding the claim process that states 3
the following: 4
"Property insurance policies obligate the insured to present a claim to his or her 5
insurance company for consideration. Three (3) types of adjusters may be involved 6
in the claim process as follows: 7
1. "Staff adjuster" means an insurance adjuster who is an employee of an 8
insurance company, who represents the interest of the insurance 9
company, and who is paid by the insurance company. A staff adjuster 10
shall not charge a fee to the insured; 11
2. "Independent adjuster" means an insurance adjuster who is hired on a 12
contract basis by an insurance company to represent the insurance 13
company's interest in the settlement of the claims and who is paid by the 14
insurance comp any. An independent adjuster shall not charge a fee to 15
the insured; and 16
3. "Public adjuster" means an insurance adjuster who does not work for 17
any insurance company. A public adjuster works for the insured to assist 18
in the preparation, presentation, and se ttlement of the claim, and the 19
insured hires a public adjuster by signing a contract agreeing to pay him 20
or her a fee or commission based on a percentage of the settlement or 21
another method of payment. 22
The insured is not required to hire a public adjuster to help the insured meet his or 23
her obligations under the policy, but has the right to hire a public adjuster. The 24
insured has the right to initiate direct communications with the insured's attorney, 25
the insurer, the insurer's adjuster, the insurer's atto rney, and any other person 26
regarding the settlement of the insured's claim. The public adjuster shall not be a 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 24 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
representative or employee of the insurer. The salary, fee, commission, or other 1
consideration paid to the public adjuster is the obligation of t he insured, not the 2
insurer." 3
(6) (a) A contract between a public adjuster and an insured shall be executed in 4
duplicate to provide an original physical copy of the contract to: 5
1. The public adjuster; and 6
2. The insured. 7
(b) A public adjuster's original c ontract shall be available at all times for 8
inspection by the commissioner without notice. 9
(7) Within seventy-two (72) hours of entering into a contract with an insured, a public 10
adjuster shall provide the insurer: 11
(a) A notification letter that: 12
1. Has been signed by the insured; and 13
2. Authorizes the public adjuster to render advice and assistance to the 14
insured in accordance with this subtitle [represent the insured's 15
interest]; and 16
(b) A physical copy of the contract. 17
(8) (a) The insured shall have the right to rescind a contract with a public adjuster 18
within: 19
1. Except as provided in subparagraph 2. of this paragraph, five (5)[three 20
(3)] business days after the date the physical copy of the contract was 21
provided to the insured; or[signed] 22
2. If the contract was entered into based on events that are the subject of 23
a state of emergency that was declared by the Governor, a local chief 24
executive officer, or a local government under KRS 39A.100 or 25
39B.070, as applicable, ten (10) days after the contract is executed. 26
(b) A rescission of a public adjuster contract shall be: 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 25 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
1. In writing; 1
2. Mailed or delivered to the public adjuster at the address in the contract; 2
and 3
3. Postmarked or received within the applicable rescission [three (3 ) 4
business day] period. 5
(9) If an insured exercises the right to rescind a contract under subsection (8) of this 6
section, anything of value given by the insured under the contract to the public 7
adjuster shall be returned to the insured within fifteen (15) business days following 8
receipt by the public adjuster of the rescission notice. 9
(10) Any requirement to provide a physical copy of a contract under this section shall 10
not be satisfied by providing an electronic copy of the contract. 11
(11) A contract between a public adjuster and an i nsured that is in violation of any 12
provision of this chapter shall not be enforceable. 13
Section 5. KRS 304.9-4331 is amended to read as follows: 14
(1) A public adjuster shall give an insured written notice of the insured's rights under 15
this section and KRS 304.9-433 and 304.9-4332. 16
(2) A public adjuster shall ensure that: 17
(a) Prompt notice of a claim is provided to the insurer; 18
(b) The property that is subject to a claim is available for inspection of the loss or 19
damage by the insurer; and 20
(c) The insurer is given the opportunity to interview the insured directly about the 21
loss or damage and claim. 22
(3) A public adjuster shall not restrict or prevent an insurer or its adjuster, or an 23
attorney, investigator, or other person acting on behalf of the insurer, from: 24
(a) Having reasonable access, at reasonable times, to: 25
1. The insured or claimant; or 26
2. The insured property that is the subject of a claim; 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 26 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(b) Obtaining necessary information to investigate and respond to a claim; or 1
(c) Corresponding directly with the insured regarding the claim, except a public 2
adjuster shall be copied on any correspondence with the insured relating to the 3
claim. 4
(4) (a) A public adjuster shall not act or fail to reasonably act in any manner that 5
obstructs or prevents the insurer or its adjuster from timely conducting an 6
inspection of any part of the insured property for which there is a claim for 7
loss or damage. 8
(b) Except as provided in paragraph (c) of this subsection, a public adjuster 9
representing an insured may be present for the insurer's inspection. 10
(c) If the unavailability of a public adjuster, after a reasonable request by the 11
insurer, otherwise delays the insurer's timely inspection of the property, the 12
insured shall allow the insurer to ha ve access to the property without the 13
participation or presence of the public adjuster in order to facilitate the 14
insurer's prompt inspection of the loss or damage. 15
(5) A public adjuster shall provide the insured, the insurer, and the commissioner with 16
a w ritten disclosure concerning any direct or indirect financial interest that the 17
adjuster has with any other party who is involved in any aspect of the claim. 18
(6) A public adjuster shall not: 19
(a) Participate, directly or indirectly, in the reconstruction, r epair, or restoration 20
of damaged property that is the subject of a claim adjusted by the adjuster; 21
(b) Engage in any activities that may be reasonably construed as a conflict of 22
interest, including, directly or indirectly, soliciting or accepting any 23
remuneration of any kind or nature; 24
(c) Have a financial interest in , or otherwise be affiliated with, any salvage, 25
repair, or any other business entity or person that obtains business in 26
connection with any claim that the public adjuster has a contract to adjust;[ or] 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 27 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(d) Utilize a contractor, another form of business, or any other person to solicit 1
or obtain contract signatures; or 2
(e) 1. Use claim information obtained in the course of any claim investigation 3
for commercial purposes. 4
2. As used in subparagraph 1. of this paragraph, "commercial purposes" 5
includes marketing or advertising used for the benefit of the public 6
adjuster. 7
(7) For a period of two (2) years beginning on the effective date of this section of this 8
Act, a public adjus ter shall not negotiate with an insurer on behalf of an insured 9
in the adjustment or settlement of a claim. 10
Section 6. KRS 304.9-4332 is amended to read as follows: 11
(1) All funds received or held by a public adjuster on behalf of an insured toward the 12
settlement of a claim shall be: 13
(a) Handled in a fiduciary capacity; and 14
(b) Deposited into one (1) or more separate noninterest -bearing fiduciary trust 15
accounts in a financial institution licensed to do business in this sta te no later 16
than the close of the second business day from the receipt of the funds. 17
(2) The funds referenced in subsection (1) of this section shall: 18
(a) Be held separately from any personal or nonbusiness funds; 19
(b) Not be commingled or combined with other funds; 20
(c) Be reasonably ascertainable from the books of accounts and records of the 21
public adjuster; and 22
(d) Be disbursed within thirty (30) calendar days of any invoice received by the 23
public adjuster upon approval of the insured or the claimant that the work has 24
been satisfactorily completed. 25
(3) For[A public adjuster shall maintain an accurate record and itemization of] any 26
funds deposited into an account under subsection (1) of this section , a public 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 28 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
adjuster shall: 1
(a) Maintain an accurate record a nd itemization of the funds in accordance 2
with KRS 304.9-435; and 3
(b) Provide the insured with a receipt of deposit within three (3) business days 4
after the date the funds were deposited. 5
Section 7. KRS 304.9-4333 is amended to read as follows: 6
(1) [Except as provided in subsection (2) of this section: 7
(a) ]Any fee charged to an insured by a public adjuster shall[ be]: 8
(a)[1.] Be based only on the amount of the insurance settlement proceeds 9
actually received by the insured;[ and] 10
(b)[2.] Be collected by the public adjuster after the insured has received the 11
insurance settlement proceeds from the insurer; and 12
(c) Comply with subsections (2) and (3) of this section. 13
(2)[(b)] Except as provided in subsection (3) of this section or subsection (1) of 14
Section 4 of this Act: 15
(a) A public adjuster may receive a fee[commission] for services provided under 16
this subtitle consisting of: 17
1. An hourly rate[fee]; 18
2. A flat rate; 19
3. A percentage rate[of the total amount paid by the insurer to resolve a 20
claim]; or 21
4. Another method of compensation; and 22
(b)[(c)] A public adjuster: 23
1. Shall not charge: 24
a. An unreasonable fee; or 25
b. A fee based on insurance settlement proceeds received by the 26
insured prior to: 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 29 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
i. The execution of a contract between the insured and public 1
adjuster; or[and] 2
ii. The conclusion of the rescission period required under 3
Section 4 of this Act; and 4
2. May charge a reasonable fee that does not exceed ten percent (10%)[: 5
a. For noncatastrophic claims, fifteen percent (15%)] of the [ total] 6
insurance settlement proceeds upon which a fee may be based under 7
this section[recovery of the insured; and 8
b. For catastrophi c claims, ten percent (10%) of the total insurance 9
recovery of the insured]. 10
(3)[(2)] In the event a public adjuster is entitled to compensation in accordance with 11
subsection (1)(b) of Section 4 of this Act and the [If an] insurer[, not later than 12
seventy-two (72) hours after the date on which a loss or damage is reported to the 13
insurer,] either pays or commits in writing to pay the policy limit of the insurance 14
policy to the insured prior to the execution of, or conclusion of a rescission period 15
for, a contract between the insured and the public adjuster , the[a] public adjuster 16
shall: 17
(a) Not receive a commission consisting of a percentage rate[of the total amount 18
paid by the insurer to resolve a claim]; 19
(b) Inform the insured that the claim settlement amoun t may not be increased by 20
the insurer; and 21
(c) Be entitled only to reasonable compensation from the insured for services 22
provided by the adjuster on behalf of the insured, based on the time spent on 23
the claim and expenses incurred by the adjuster prior to when the claim was 24
paid or the insured received a written commitment to pay from the insurer. 25
Section 8. KRS 304.9-440 is amended to read as follows: 26
(1) The commissioner may place on probation, suspend, or may impose co nditions 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 30 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
upon the continuance of a license for not more than twenty -four (24) months, 1
revoke, or refuse to issue or renew any license issued under this subtitle or any 2
surplus lines broker, life settlement broker, or life settlement provider license, or 3
may levy a civil penalty in accordance with KRS 304.99 -020, or any combination 4
of actions for any one (1) or more of the following causes: 5
(a) Providing incorrect, misleading, incomplete, or materially untrue information 6
in a license application; 7
(b) Violating any insurance laws, or violating any administrative regulations, 8
subpoena, or order of the commissioner or of another state's insurance 9
commissioner; 10
(c) Obtaining or attempting to obtain a license through misrepresentation or 11
fraud; 12
(d) Improperly with holding, misappropriating, or converting any moneys or 13
properties received in the course of doing insurance or the business of life 14
settlements; 15
(e) Intentionally misrepresenting the terms of an actual or proposed insurance 16
contract, life settlement contract, or application for insurance; 17
(f) Having been convicted of or having pled guilty or nolo contendere to any 18
felony; 19
(g) Having admitted or been found to have committed any unfair insurance trade 20
practice, insurance fraud, or fraudulent life settlement act; 21
(h) Using fraudulent, coercive, or dishonest practices; or demonstrating 22
incompetence, untrustworthiness, or financial irresponsibility; or being a 23
source of injury or loss to the public in the conduct of business in this state or 24
elsewhere; 25
(i) Having an insurance license, life settlement license, or its equivalent, denied, 26
suspended, or revoked in any other state, province, district, or territory; 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 31 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(j) Surrendering or otherwise terminating any license issued by this state or by 1
any other jurisdiction, under threat of disciplinary action, denial, or refusal of 2
the issuance of or renewal of any other license issued by this state or by any 3
other jurisdiction; or revocation or suspension of any other license held by the 4
licensee issued by this state or by any other jurisdiction; 5
(k) Forging another's name to an application for insurance, to any other document 6
related to an insurance transaction, or to any doc ument related to the business 7
of life settlements; 8
(l) Cheating, including improperly using notes or any other reference material to 9
complete an examination for license; 10
(m) Knowingly accepting insurance or life settlement business from an individual 11
or bu siness entity who is not licensed, but who is required to be licensed 12
under this subtitle; 13
(n) Failing to comply with an administrative or court order imposing a child 14
support obligation; 15
(o) Failing to pay state income tax or to comply with any administra tive or court 16
order directing payment of state income tax; 17
(p) Having been convicted of a misdemeanor for which restitution is ordered in 18
excess of three hundred dollars ($300), or of any misdemeanor involving 19
dishonesty, breach of trust, or moral turpitude; 20
(q) [Failing to ]No longer meeting[meet] the requirements for initial licensure; 21
(r) If a life settlement provider, demonstrating a pattern of unreasonable 22
payments to owners or failing to honor contractual obligations set out in a life 23
settlement contract; 24
(s) Entering into any life settlement contract or using any form that has not been 25
approved pursuant to Subtitle 15 of this chapter; 26
(t) If a licensee, having assigned, transferred, or pledged a policy subject to a life 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 32 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
settlement contract to a person other than a life settlement provider licensed in 1
this state, an accredited investor or qualified institutional buyer as defined, 2
respectively, in Regulation D, Rule 501 or Rule 144a of the Federal Securities 3
Act of 1933, as amended, a financing entity, a special purpose entity, or a 4
related provider trust; or 5
(u) Any other cause for which issuance of the license could have been refused, 6
had it then existed and been known to the commissioner. 7
(2) (a) For any public adjuster or apprentice adjuster supervise d by a public adjuster 8
under KRS 304.9-432, the commissioner shall[may] deny, suspend, or revoke 9
the adjuster's or apprentice adjuster's license or impose a fine not to exceed 10
five thousand dollars ($5,000) per act[ against the adjuster], or both, for any of 11
the following causes: 12
1. Violating any provision of this chapter; 13
2. Violating any administrative regulation or order of the commissioner; 14
3. Receiving payment or anything of value as a result of an unfair or 15
deceptive practice; 16
4. Receiving or accepting any fee, kickback, or other thing of value 17
pursuant to any agreement or understanding, oral or otherwise, from 18
anyone other than an insured; 19
5. Entering into a split -fee arrangement with another person who is not a 20
public adjuster; or 21
6. Being otherwise paid or accepting payment for public adjuster services 22
that have not been performed. 23
(b) The sanctions and penalties under this subsecti on shall be in addition to any 24
other remedies, penalties, or sanctions available to the commissioner against a 25
public adjuster or an apprentice adjuster supervised by a public adjuster under 26
KRS 304.9-432 under this section or any other law. 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 33 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(3) The licen se of a business entity may be suspended, revoked, or refused for any 1
cause relating to an individual designated in or registered under the license if the 2
commissioner finds that: 3
(a) An individual licensee's violation was known or should have been known b y 4
one (1) or more of the partners, officers, or managers acting on behalf of the 5
business entity; and 6
(b) The violation was not reported to the department nor corrective action taken. 7
(4) (a) The license of a pharmacy benefit manager may, in the discretion of the 8
commissioner, be suspended, revoked, or refused for any cause enumerated in 9
subsection (1) of this section, and for violations of KRS 205.647, 304.9 -053, 10
304.9-054, 304.9-055, and 304.17A-162. 11
(b) The pharmacy benefit manager shall also be subject to the same civil penalties 12
under KRS 304.99-020 as an insurer. 13
(5) The applicant or licensee may make written request for a hearing in accordance 14
with KRS 304.2-310. 15
(6) The commissioner shall retain the authority to enforce the provisions and penalties 16
of this chapter against any individual or business entity who is under investigation 17
for or charged with a violation of this chapter, even if the individual's or business 18
entity's license has been surrendered or has lapsed by operation of law. 19
(7) The commissioner may suspend, revoke, or refuse to renew the license of a licensed 20
insurance agent operating as a life settlement broker, pursuant to KRS 304.15 -700, 21
if the commissioner finds that such insuran ce agent has violated the provisions of 22
KRS 304.15-700 to 304.15-725. 23
(8) If the commissioner denies a license application or suspends, revokes, or refuses to 24
renew the license of a life settlement provider or life settlement broker, or suspends, 25
revokes, or refuses to renew the license of a licensed life insurance agent operating 26
as a life settlement broker pursuant to KRS 304.15 -700, the commissioner shall 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 34 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
comply with the provisions of this section and KRS Chapter 13B. 1
(9) The sanctions and penalties appl icable to licenses and licensees under subsection 2
(1) of this section shall also be applicable to registrations and registrants under KRS 3
304.52-030(3). 4
SECTION 9. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 5
READ AS FOLLOWS: 6
(1) (a) A violation of Section 4, 5, 6, or 7 of this Act shall be deemed to be an 7
unfair, false, misleading, or deceptive act or practice in the conduct of trade 8
or commerce in violation of KRS 367.170. 9
(b) All of the remedies, powers, and duties p rovided to the Attorney General or 10
any other person under KRS 367.110 to 367.300, and the penalties provided 11
in KRS 367.990, pertaining to acts and practices declared unlawful by KRS 12
367.170, shall apply with equal force and effect to a violation of this section. 13
(2) (a) The remedies and penalties prescribed in this section shall be cumulative. 14
(b) This section shall not be construed to limit or restrict the powers, duties, 15
remedies, or penalties available to the Attorney General, the 16
Commonwealth, or any o ther person under any other statutory or common 17
law. 18
Section 10. KRS 304.9-436 is amended to read as follows: 19
(1) An authorized insurer shall not do business in Kentucky with an adjuster who is 20
unlicensed in violation of KRS 304.9 -080 and 304.9 -430. This section shall not 21
apply to transactions between an authorized insurer and persons providing adjusting 22
services pursuant to KRS 304.9-430(10), (11), [(12), ]and (13)[(14)]. 23
(2) An authorized insurer shall not do business i n Kentucky with an administrator who 24
is not licensed in accordance with KRS 304.9 -052. This subsection shall not apply 25
to transactions between an authorized insurer and persons providing administrator 26
services pursuant to KRS 304.9-051. 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 35 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
Section 11. KRS 304.9-295 is amended to read as follows: 1
(1) This section shall apply to individuals who hold licenses or lines of authority 2
requiring continuing education each biennium. 3
(2) The continuing education biennial compliance dat e for an individual resident 4
licensee shall be as follows: 5
(a) A licensee whose birth date is in an even -numbered year shall satisfy 6
continuing education requirements on or before the last day of the licensee's 7
birth month in the even -numbered year. A lice nsee shall show proof of 8
compliance to the commissioner within sixty (60) days after the continuing 9
education biennial compliance date. If the licensee has not held the license for 10
one (1) year, the compliance date is adjusted to the next even -numbered year 11
and each subsequent even -numbered year thereafter. If the license becomes 12
inactive and reissued within a twelve (12) month period, the compliance date 13
shall remain the same; 14
(b) A licensee whose birth date is in an odd -numbered year shall satisfy 15
continuing education requirements and show proof of compliance to the 16
commissioner on or before the last day of the licensee's birth month in the 17
odd-numbered year. A licensee shall show proof of compliance to the 18
commissioner within sixty (60) days after the con tinuing education biennial 19
compliance date. If the licensee has not held the license for one (1) year, the 20
compliance date is adjusted to the next odd -numbered year and each 21
subsequent odd-numbered year thereafter. If the license becomes inactive and 22
reissued within a twelve (12) month period, the compliance date shall remain 23
the same. 24
(3) This section shall not apply to: 25
(a) Limited lines of authority under agent licenses, as exempted by the 26
commissioner in accordance with KRS 304.9-230; 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 36 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(b) Licensees not licensed for one (1) full year prior to the end of the applicable 1
continuing education biennium; 2
(c) Licensees holding nonresident licenses who have met the continuing 3
education requirements of their home state and whose home state gives credit 4
to Kentucky resident licensees on the same basis; or 5
(d) Licensees maintaining their licenses for the sole purpose of receiving 6
renewals or deferred commissions and providing the department with a 7
supporting affidavit. 8
(4) A licensee, who holds an agent license and w ho is not exempt under subsection (3) 9
of this section, shall satisfactorily complete a minimum of twenty-four (24) hours of 10
continuing education courses, of which three (3) hours shall have a course 11
concentration in ethics, during each continuing education biennium. 12
(5) Beginning July 31, 2012, an individual who holds an independent or public adjuster 13
license and who is not exempt under KRS 304.9 -430(10)[ or (11)] , shall 14
satisfactorily complete a minimum of twenty -four (24) hours of continuing 15
education cou rses, of which three (3) hours shall have a course concentration in 16
ethics in accordance with subsection (4) of this section. Continuing education hours 17
shall be reported to the commissioner on a biennial basis in conjunction with the 18
licensee's renewal in accordance with subsection (10) of this section. 19
(6) Only continuing education courses approved by the commissioner shall be used to 20
satisfy the continuing education requirement of subsection (4) of this section and 21
any other continuing education requirement of this chapter. 22
(a) The continuing education courses which meet the commissioner's standards 23
for continuing education requirements are: 24
1. Any part of the Life Underwriter Training Council life course 25
curriculum; 26
2. Any part of the Health Underwriter Training Council health course 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 37 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
curriculum; 1
3. Any part of the American College Chartered Life Underwriter diploma 2
curriculum; 3
4. Any part of the American Institute for Property and Liability 4
Underwriters' chartered property and casualty underwriter profession 5
designation program; 6
5. Any part of the Insurance Institute of America's programs; 7
6. Any part of the certified insurance counselor program; 8
7. Any insurance related course taught at an accredited college or 9
university, if the course is approved by the commissioner; 10
8. Any course of instruction or seminar developed or sponsored by any 11
authorized insurer, recognized agent association, recognize d insurance 12
trade association, or any independent program of instruction, if 13
approved by the commissioner; 14
9. Any correspondence course approved by the commissioner; and 15
10. Any course in accordance with provisions of reciprocal agreements the 16
commissioner enters with other states. 17
(b) The commissioner shall prescribe the number of hours of continuing 18
education credit for each continuing education course approved in accordance 19
with this subsection. Continuing education courses submitted in accordance 20
with a reciprocal agreement shall be approved according to the provisions of 21
the reciprocal agreement. 22
(c) If a continuing education course requires successful completion of a written 23
examination, no continuing education credit shall be given to licensees who 24
do not successfully complete the written examination. 25
(d) The fee for filing continuing education courses for approval by the 26
commissioner shall be as specified in Subtitle 4 of KRS Chapter 304. 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 38 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(e) For continuing education courses of reciprocal states, cont inuing education 1
providers shall be approved in accordance with the provisions of the 2
reciprocal agreements. 3
(7) An individual teaching any approved continuing education course shall qualify for 4
the same number of hours of continuing education credit as wo uld be granted to a 5
licensee taking and satisfactorily completing the course. 6
(8) Excess credit hours accumulated during any continuing education biennium may be 7
carried forward. The commissioner may, by regulation, limit the number of hours 8
carried forward. 9
(9) For good cause shown, the commissioner may grant an extension of time during 10
which the continuing education requirement of subsection (2) of this section may be 11
completed, but the extension of time shall not exceed two (2) years. What 12
constitutes good cause for the extension of time rests within the discretion of the 13
commissioner. 14
(10) Every licensee subject to this section shall furnish to the commissioner written 15
certification as to the continuing education courses satisfactorily completed by the 16
licensee. The certification shall be signed by or on behalf of the provider sponsoring 17
the continuing education course. The certification shall be on a form prescribed by 18
the commissioner. 19
(11) The provider shall furnish to the commissioner certification as to the continuing 20
education courses satisfactorily completed by each licensee. The certification shall 21
be signed or authenticated by or on behalf of the provider sponsoring the continuing 22
education course. The certification shall be on a form or in a form at prescribed by 23
the commissioner. 24
(12) The license or line of authority requiring continuing education shall expire if the 25
individual holding the license or line of authority fails to comply with the 26
continuing education requirement and has not been grant ed an extension of time to 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 39 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
comply in accordance with subsection (9) of this section. If the license has expired, 1
the license shall be promptly surrendered to the commissioner without demand. If 2
the line of authority has terminated but another line of autho rity not requiring 3
continuing education is still in effect, the license shall be promptly delivered to the 4
commissioner for reissuance as to the line of authority still in effect. 5
(13) The license of any individual subject to the continuing education requi rement shall 6
be suspended or revoked, a civil penalty imposed, or both, in accordance with KRS 7
304.9-440, if the individual submits to the commissioner a false or fraudulent 8
certificate of compliance with the continuing education requirement. 9
(14) (a) The commissioner may withdraw approval of a continuing education 10
provider, course, or instructor for good and just cause. 11
(b) In addition to or in lieu of withdrawal of approval, the commissioner may 12
impose a civil penalty of not more than one thousand dollars ($1,000) per 13
violation of this chapter by a provider or an instructor. 14
Section 12. KRS 196.026 is amended to read as follows: 15
The Department of Corrections shall consist of the following organizational units: 16
(1) Division of Compliance; 17
(2) Division of Public Affairs; 18
(3) Office of Adult Institutions, which shall have the following divisions: 19
(a) Division of Operations and Program Services; 20
(b) Division of Medical Services; 21
(c) Division of Mental Health Services; 22
(d) Division of Education; 23
(e) Division of Correctional Industries; 24
(f) Division of Kentucky State Reformatory; 25
(g) Division of Luther Luckett Correctional Complex; 26
(h) Division of Roederer Correctional Complex; 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 40 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
(i) Division of Blackburn Correctional Complex; 1
(j) Division of Kentucky Correctional Institution for Women; 2
(k) Division of Northpoint Training Center[ Division]; 3
(l) Division of Eastern Kentucky Correctional Complex; 4
(m) Division of Bell County Forestry Camp; 5
(n) Division of Kentucky State Penitentiary; 6
(o) Division of Western Kentucky Correctional Complex; 7
(p) Division of Green River Correctional Complex; 8
(q) Division of Little Sandy Correctional Complex;[ and] 9
(r) Division of Southeast State Correctional Complex; and 10
(s) Division of Central Kentucky Medical Correctional Complex. 11
Each division specified in paragraphs (f) to (s)[(r)] of this subsection shall be 12
headed by a warden pursuant to KRS 196.160; 13
(4) Office of Community Services and Facilities, which shall have the following 14
divisions: 15
(a) Division of Probation and Parole; 16
(b) Division of Reentry; 17
(c) Division of Local Facilities; and 18
(d) Division of Addiction Services; and 19
(5) Office of Support Services, which shall have the following divisions: 20
(a) Division of Administrative Services; 21
(b) Division of Corrections Training; 22
(c) Division of Population Management; 23
(d) Division of Offender Information Services; and 24
(e) Division of Parole Board Support. 25
Section 13. KRS 342.908 is amended to read as follows: 26
(1) The commissioner shall notify a guaranty fund if the commissioner has knowledge 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 41 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
that any member of the guaranty fund has failed to timely p ay workers' 1
compensation benefits required by this chapter or if a court of competent 2
jurisdiction has declared the member to be bankrupt or insolvent. 3
(2) In the event of issuance of a certificate of default, the commissioner shall call all 4
security and t ransfer it to the appropriate guaranty fund created pursuant to this 5
section. The commissioner shall also immediately notify, by certified mail, the 6
guaranty fund and order the guaranty fund to assume the workers' compensation 7
obligations of the member req uired in this chapter. The guaranty fund shall 8
commence payment of these obligations within fourteen (14) days of receipt of 9
notification and order of the commissioner. Payment shall be made to claimants 10
whose entitlement to benefits can be ascertained by the guaranty fund with or 11
without proceedings before the Department of Workers' Claims or a court of 12
competent jurisdiction. Upon assumption of the obligations of a member by a 13
guaranty fund, the guaranty fund shall have the right to immediate possession o f 14
any security, and the custodian, surety, or issuer of any irrevocable letter of credit 15
shall turn over the security, proceeds of the surety bond, or letter of credit to the 16
guaranty fund, together with the interest that has accrued since the date of the 17
member's insolvency. The guaranty fund may administer payment of benefits or it 18
may retain a third party to do so. 19
(3) Notwithstanding any other provision of law, any cash, securities, irrevocable letters 20
of credit, specific excess or aggregate excess insu rance proceeds, or any other 21
security deposited or posted in accordance with this section shall be used first, when 22
due, to pay workers' compensation claims. After the security has been exhausted, 23
the payment of workers' compensation claims from member ass essments may be 24
made. Where the guaranty fund member-assessment account is used to pay workers' 25
compensation claims on an emergency or an interim basis, pending receipt by the 26
guaranty fund of security which is due but not yet received, the member -assessment 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 42 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
account shall be reimbursed for payment from the security when it is received, and 1
the priorities stated above shall thereafter apply. 2
(4) (a) To the extent necessary to secure funds for the initial establishment of each 3
guaranty fund member -assessment account, the board of directors of each 4
guaranty fund created pursuant to this section shall levy assessments based on 5
the premium of each individual self -insured employer, as defined and 6
calculated pursuant to KRS 342.0011(28), for members of the Kentucky 7
individual self -insurers guaranty fund and for the Kentucky coal employers 8
self-insurance guaranty fund, and KRS 342.0011(24) for the Kentucky group 9
self-insurance guaranty fund, but no such assessments shall ever exceed, in 10
the aggregate, from all member s of a single guaranty fund, an amount in 11
excess of one million dollars ($1,000,000) at any given time. 12
(b) The assessments shall be made at a maximum annual assessment of: 13
1. One-half of one percent (0.5%) of the premium for each member of the 14
Kentucky in dividual self -insurance guaranty fund as defined and 15
calculated pursuant to KRS 342.0011(28); 16
2. Two percent (2%) of the premium for each member of the Kentucky 17
coal employers guaranty fund as defined and calculated pursuant to KRS 18
342.0011(28); and 19
3. Three-fourths of one percent (0.75%) of the premium for each member 20
of the Kentucky group self -insurance guaranty fund as defined and 21
calculated pursuant to KRS 342.0011(24). 22
(5) The initial assessment for each guaranty fund created pursuant to this section s hall 23
be for an amount equal to five hundred thousand dollars ($500,000), to be levied 24
and collected within a one (1) year period. There shall be no reassessments against 25
any member unless the current balance of such guaranty fund created pursuant this 26
section is insufficient after deducting the amount paid for or reserved for 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 43 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
outstanding claims and for administrative and other costs in managing the guaranty 1
fund at which point the board of directors shall raise assessments sufficient to bring 2
the minimum am ount of the guaranty fund to five hundred thousand dollars 3
($500,000) or such other amount not to exceed, in any event, one million dollars 4
($1,000,000) based upon a maximum annual assessment for each guaranty fund. 5
(6) A guaranty fund created pursuant to this section shall pay no dividends, rebates, 6
interest, or otherwise distribute income from the guaranty fund to any of its 7
members, unless the guaranty fund has the assets prescribed in subsection (5) of this 8
section and the distributions are approved by the commissioner. 9
(7) The commissioner shall be provided with any relevant information by the employer, 10
any excess insurer, any third party administrator, or any issuer of any irrevocable 11
letter of credit, issuer of any surety bond, or custodian of any sec urity necessary for 12
the commissioner to carry out the commissioner's obligations under this chapter, 13
and the commissioner shall provide this information to the guaranty fund as 14
necessary to carry out its obligations. 15
(8) The payment of benefits by a guaran ty fund does not release any person or entity 16
from any liability to the individual guaranty fund for full reimbursement. 17
(9) (a) As used in this subsection: 18
1. "Annual special fund assessment" means the assessment imposed 19
upon a member fund pursuant to KRS 342.122(1)(b); 20
2. "Division" means the Division of Workers' Compensation Funds in 21
the Department of Workers' Claims; 22
3. "Group fund" means the Kentucky group self -insurance fund 23
established pursuant to KRS 342.906(2); and 24
4. "Member fund" means a member o r former member of the Kentucky 25
group self-insurance fund that is assessed under subsection (4) of this 26
section on or after January 1, 2026, for liabilities incurred while a 27
UNOFFICIAL COPY 26 RS HB 568/EN
Page 44 of 44
HB056820.100 - 473 - XXXX 4/2/2026 12:15 AM Engrossed
member. 1
(b) Notwithstanding any provision of KRS 342.122 to the contrary, or any o ther 2
provision of this chapter or other law, for calendar years beginning January 3
1, 2027, and January 1, 2028: 4
1. The amount of the annual special fund assessment imposed upon a 5
member fund shall be retained by the member fund and paid to the 6
credit of the group fund for the purpose of satisfying the group fund's 7
outstanding workers' compensation claims; and 8
2. A memb er fund shall pay the amounts of its annual special fund 9
assessment to the group fund on the schedule set forth in KRS 10
342.122(2)(a) and (b) and shall provide the division with notice of the 11
assessments paid. 12
(c) This subsection shall not apply to any spec ial fund assessment for any 13
calendar year beginning after December 31, 2028. 14
Section 14. Sections 4 to 7 of this Act apply to contracts entered into on or after 15
the effective date of Sections 4 to 7 of this Act. 16
Section 15. Whereas ensuring adequate licensing requirements for public 17
adjusters is crucial for the protection of consumers, and it is critical to ensure that the 18
Department of Corrections is able to provide the care and capacity necessary for the 19
inmate population, an emergency is declared to exist, and Sections 1, 2, 3, 10, 11, and 12 20
of this A ct take effect upon its passage and approval by the Governor or upon its 21
otherwise becoming a law. 22