Kentucky Insurance Exam Guides
Pick the license you're studying for. Each guide covers Kentucky-specific requirements, fees, and official links — plus a free practice exam. Then scroll down to explore the Kentucky exam's state-law material, mapped.
Free study resource
What's actually tested on the Kentucky exam — the state regulations, mapped
Every Kentucky insurance exam reserves a block of questions for Kentucky-specific law — the fees, deadlines, limits, and rules that generic national study guides gloss over. This is that material: 163 facts from the TESTivity Kentucky regulations curriculum, organized the way we teach them. Open a branch, explore, and let the structure do some of the remembering for you.
Every fact below carries its source citation and the date we last verified it (most recently August 2026) — and is re-checked on a schedule. Facts marked tested are ones you should expect to see on the exam.
Life 18 facts
The life insurance rules that differ by state — free look, grace, reinstatement.
- Incontestability period testedNOT MORE THAN 2 years from the date of issue, during the insured's lifetime. The statute sets a CEILING — an insurer may contract for a shorter contestable period but not a longer one. Nonpayment of premium is always exceptable; disability and accidental-death provisions may be excepted at the insurer's option. Watch the cross-reference: KRS 304.15-080(2) requires any monthly disability income rider attached to a life policy to carry the accident-and-health incontestability clause under KRS 304.17-060 — three years, not two.
- Misstatement of age — or sex testedKentucky adjusts for misstatement of age OR SEX: benefits become what the premium paid would have purchased at the correct age and the correct sex. Generic national prep teaches age only.
- When a policy loan becomes available testedAfter 3 full years’ premiums have been paid and the policy has a cash surrender value. Does not apply to term policies, term riders, or industrial life.
- When dividends must first be apportioned testedParticipating policies are apportioned annually beginning not later than the end of the third policy year — with two exceptions: renewable term of ten years or less may apportion annually after the second year, and industrial life may begin in the fifth policy year.
- Grace period, individual life tested30 days — or, at the insurer’s option, one month of not less than 30 days, or 4 weeks for industrial life whose premiums are payable more often than monthly
- Window to reinstate a lapsed policy testedWithin 3 years of premium default (2 years for industrial life), on evidence of insurability and payment of overdue premiums with interest
- Free look for annuities tested15 days for an annuity, where the Buyer's Guide and disclosure were not delivered with or before the application (806 KAR 12:150)
- Free look on an ordinary, non-replacement life policy testedNOT LESS THAN 10 DAYS from receipt of the policy — a required standard provision under KRS 304.15-050(2), made compulsory by KRS 304.15-040. On return the policy is "deemed void from its inception" and the premium is promptly refunded. Credit life insurance and policies issued under tax-qualified pension plans are excepted. Distinguish the 30-day period on a REPLACED policy (806 KAR 12:080) and the 15-day period on an annuity where the Buyer's Guide and disclosure were not delivered at or before application (806 KAR 12:150).
- Free look when a policy is being replaced tested30 days on a replaced life policy or annuity, with an unconditional full refund (806 KAR 12:080)
- Free look for long-term care tested30 days for long-term care and 30 days for Medicare supplement (806 KAR 17); the LTC figure is per the DOI guide (NAIC standard)
- Required nonforfeiture options testedCash surrender value, reduced paid-up insurance, extended term insurance
- Registrations required to sell variable products testedThe Life line plus FINRA securities registration; Variable Life and Variable Annuity is a separate Kentucky line (no separate exam)
- Does the state regulate viatical/life settlements? testedYes — the Kentucky Life Settlements law
- Viator's rescission window testedThe EARLIER of 30 days after the contract is executed OR 15 days after the viator receives the proceeds
- Has the state adopted the NAIC best interest standard? testedYES — Kentucky adopted the NAIC best interest standard, effective January 4, 2022 (806 KAR 12:120). A licensee recommending an annuity "shall act in the best interest of the consumer," without placing the licensee's or the insurer's financial interest ahead of the consumer's — but the regulation adds that this "shall not create a fiduciary obligation or relationship." The text's "or January 1, 2022, whichever is later" is an implementation floor, not the effective date.
- Duty to look for unclaimed death benefits testedThe insurer must compare in-force policies, contracts and retained asset accounts against a Death Master File at least semiannually, and within 90 days of a match complete documented good-faith efforts to confirm the death, locate beneficiaries and provide claim forms
- Stranger-originated life insurance testedUnlawful to issue, solicit, market or otherwise promote the purchase of a life policy "for the sole purpose of or with a primary emphasis on settling the policy." Kentucky’s bar is conduct- and intent-based — there is no fixed two-year or five-year post-issue settlement ban.
- Training required before selling an annuity tested4 hours of initial annuity training before any sale, solicitation or negotiation. Agents who had completed annuity training before January 1, 2022 were given six months to complete EITHER a new 4-credit-hour course OR a one-time 1-credit-hour top-up on sales practices and replacement and disclosure — an either/or election whose deadline has expired, not a standing extra hour.
Health 25 facts
Health coverage rules — continuation, prompt pay, mandates, public programs.
- Has the state expanded Medicaid under the ACA? testedYES — Kentucky expanded Medicaid under the ACA, effective January 1, 2014 (up to 138% of the poverty level)
- Effective date of expansion, if expanded testedJanuary 1, 2014
- Agency administering Medicaid testedKentucky Medicaid, administered by the Department for Medicaid Services (accessed through kynect)
- Federal marketplace or state-based exchange testedA STATE-BASED exchange — kynect. Kentucky runs its own marketplace, which it relaunched for plan year 2022 after several years on HealthCare.gov.
- Name of the state CHIP program testedKCHIP — the Kentucky Children's Health Insurance Program
- Clean-claim payment deadline, electronic tested30 calendar days to pay or deny a clean claim (Kentucky applies the same 30-day standard to electronic and paper; 60 days for organ transplants)
- Clean-claim payment deadline, paper tested30 calendar days — the same deadline as electronic claims
- Does the state distinguish electronic vs paper claims? testedNo split — a single 30-day clean-claim deadline for both paper and electronic claims
- Interest / penalty on late claim payment testedTiered interest on a late clean claim: 12% per year if 1-30 days late, 18% if 31-60 days late, and 21% if more than 60 days late
- Is the IRO's external review decision binding on the plan? testedYES — Kentucky runs a binding external review: 'The decision of the independent review entity shall be binding on the insurer'
- Employer size at which federal COBRA applies testedFederal COBRA applies at 20 or more employees. Kentucky’s own continuation statute states no employer-size threshold at all, so the two do not stack the way they do in states with an express small-employer mini-COBRA.
- Employer size range covered by state continuation testedNO employer-size threshold appears in the statute. The gate is 3 months of prior coverage. Election and payment are due within 31 days after the insurer’s notice; if notice was not given, an extra period runs to 60 days after written notice is received, but nothing requires continuation more than 90 days after termination.
- Duration of state continuation coverage testedUp to 18 months. Eligibility turns on prior coverage — the group member must have been covered under the group policy or a policy it replaced for at least 3 months — not on employer size.
- Max premium as % of group rate testedThe group rate (about 100%) — Kentucky's statute does not add a surcharge percentage
- Grace period, tiered by premium mode testedIndividual accident and health grace periods are TIERED: 7 days for a weekly-premium policy, 10 days for a monthly-premium policy, 31 days for every other mode. Where the insurer reserves the right to refuse renewal it must give written notice not less than 5 days before the premium due date.
- Incontestability, accident and health testedTHREE years, not two. After three years from issue, no misstatement except a fraudulent misstatement may be used to void the policy or deny a claim for loss or disability commencing after that period.
- Reinstatement deemer, accident and health testedWhere the insurer requires an application for reinstatement and issues a conditional receipt, the policy reinstates on approval or, absent approval, automatically on the 45th day after the conditional receipt unless the insurer has already given written notice of disapproval
- What a reinstated A&H policy covers, and when testedAccidental injury sustained after the date of reinstatement, and sickness beginning more than 10 days after that date. Reinstatement premium may not be applied to any period more than 60 days before reinstatement.
- Small group definition testedA small employer with TWO to FIFTY employees, or an affiliated group or association with two to fifty eligible members. Kentucky retains 2–50 — not 1–50 and not 1–100.
- External review clocks tested60 days from receipt of the adverse determination notice to request review; a standard independent review decision within 21 calendar days of receipt of all required information; an expedited decision within 24 hours, extendable once by 24 hours, with the insurer forwarding the file within 24 hours. A provider may request on the covered person’s behalf with consent.
- Medicare supplement open enrollment testedA six-month period beginning the first day of the first month in which the individual is 65 or older and enrolled in Part B. Full and fair written disclosure is required, plus a signed and dated acknowledgment from the applicant.
- Medicare supplement for under-65 disabled beneficiaries testedKentucky REQUIRES access for non-age-eligible (under-65, disabled) Medicare beneficiaries, restricting denial, conditioning and price discrimination. Many states do not.
- Long-term care producer training tested8 hours of initial long-term care training, PLUS 4 hours of additional training every biennial continuing-education compliance period, for anyone selling products qualifying under the Kentucky Long-Term Care Partnership Insurance Program
- Free look, Medicare supplement and long-term care tested30 days from delivery for a Medicare supplement policy, with the notice prominently printed on the first page or attached; 30 days for long-term care, refundable if the buyer is "not satisfied for any reason"
- Conversion right after group coverage ends testedThe insurer must offer a conversion health policy by written notice to any group member terminated under the group policy for any reason; application and premium are due not later than 31 days after that notice. Not required where the applicant qualifies for Medicare, has other coverage, or would be overinsured.
Auto 20 facts
Auto insurance — minimum limits, fault system, required coverages.
- Fault-based (tort) or no-fault testedCHOICE NO-FAULT — under the Motor Vehicle Reparations Act, personal injury protection (basic reparation benefits) pays regardless of fault, but a Kentucky driver may REJECT the tort limitation in writing and keep full tort rights.
- Minimum bodily injury liability per person tested$25,000
- Minimum bodily injury liability per occurrence tested$50,000
- Minimum property damage liability tested$25,000
- The memorizable shorthand (e.g. 30/60/25) tested25/50/25 (a $60,000 single combined limit is an alternative), plus mandatory PIP
- Uninsured motorist: mandatory / must be offered & rejectable / not required testedUninsured motorist coverage must be PROVIDED, but any named insured may reject it in writing (K.R.S. 304.20-020)
- Underinsured motorist status testedMust be made AVAILABLE on request, and Kentucky defines it by JUDGMENT rather than by a limits comparison: "a party with motor vehicle liability insurance coverage in an amount less than a judgment recovered against that party." There is no signed written-rejection mechanism as there is for UM.
- The 30-day underinsured-motorist consent procedure testedWhere an injured party proposes to settle with the tortfeasor for less than full compensation, written notice by certified or registered mail goes to every UIM insurer. The UIM insurer then has 30 days to consent to the settlement or to preserve its subrogation rights — and if it refuses consent to preserve subrogation, it must pay the injured party the amount of the written offer within 30 days of receiving the notice.
- Personal injury protection status testedMANDATORY basic reparation benefits: $10,000 per person per accident for medical expense, work loss, replacement services loss and survivor’s benefits, paid without regard to fault. "Loss" is a closed list — there is no pain and suffering inside BRB.
- Weekly cap on work loss inside BRB tested$500 per week, raised from $200 by 2026 Ky. Acts ch. 149 (HB 627) effective July 15, 2026 — the first change since 1974. The cap is a single aggregate figure covering work loss, survivor’s economic loss, replacement services loss and survivor’s replacement services loss together; you cannot stack the categories. Seasonal or irregular earnings are equitably adjusted on an annual basis. The amendment applies only to benefits issued or renewed on or after that date, so pre-July-2026 policies still carry $200.
- Funeral and burial expense inside BRB tested$5,000 per person, raised from $1,000 by 2026 Ky. Acts ch. 149 effective July 15, 2026, and likewise only for benefits issued or renewed on or after that date. Note what did NOT change: the $10,000 aggregate BRB limit stayed put.
- Tort threshold for pain and suffering testedMedical expense exceeding $1,000 — or, regardless of the dollar figure, any of seven injuries: permanent disfigurement; a fracture to a bone; a compound, comminuted, displaced or compressed fracture; loss of a body member; permanent injury within reasonable medical probability; permanent loss of bodily function; or death. The $1,000 has never been indexed since 1975.
- How the tort limitation is rejected testedOn Form NF-1, executed in writing or electronically AND FILED WITH THE DEPARTMENT OF INSURANCE before any accident. It takes effect on the Department’s file-stamp date. A signed form sitting in the agent’s file does nothing. Each household member executes individually; a parent signs for a minor under 18 where no guardian is appointed.
- Added reparation benefits and BRB deductibles testedAdded reparation benefits must be made available in units of $10,000 per person up to the lesser of $40,000 or the liability security above the statutory minimum. BRB deductibles of $250, $500 and $1,000 must also be made available.
- Interest on overdue reparation benefits testedBenefits are overdue if unpaid 30 days after the obligor receives reasonable proof of the fact and amount of loss. Overdue amounts bear 12% per annum — or 18% where the delay was "without reasonable foundation." Two rates, not one.
- Contributory / pure comparative / modified comparative negligence testedPURE comparative fault — a claimant's damages are reduced by their percentage of fault, with NO bar. A claimant recovers even if 99% at fault, reduced to their 1% share (Hilen v. Hays; KRS 411.182).
- Assigned risk / residual market plan for auto testedThe Kentucky Automobile Insurance Plan (KAIP) — the auto residual market, distinct from the FAIR Plan. The applicant must have been refused motor vehicle insurance within the last 60 days. KAIP writes bodily injury, property damage, PIP and UM for personal and commercial vehicles, motorcycles and RVs — but NOT comprehensive and collision.
- Penalty for operating without required security testedFirst offence: a fine of not less than $500 nor more than $1,000, or up to 90 days in jail, or both, with registration revoked and plates suspended for one year until proof of security. Second and subsequent within five years: licence revocation, up to 180 days in jail, or a fine of $1,000 to $2,500, or both — and reduction requires proof of security plus a receipt showing a premium for a minimum six-month policy period has been paid.
- Valuing a total-loss vehicle testedThe insurer must use the current Kelley Blue Book or the current J.D. Power Values / NADA guidelines (or a successor) to determine the retail value of a wrecked, destroyed or damaged vehicle
- Automobile glass repair and replacement testedKentucky makes certain practices in the replacement or repair of automobile glass a producer-specific offence with its own penalties — it appears expressly on the Department’s Property and Casualty study outlines
CE & Renewal 12 facts
Continuing education and renewal rules — the numbers the exam loves.
- How long a license lasts before renewal testedTwo years — the CE biennium ends the last day of the licensee's birth month (in odd or even years by birth year)
- What the renewal date keys off (flat term / birthday / birth year) testedBiennial, keyed to the last day of the birth month and to birth-year parity — an agent born in an even-numbered year renews in even-numbered years, odd in odd. Business entities renew by March 31 on the same odd/even cycle.
- Renewal fee tested$0.00 for a resident individual agent who holds an active insurer appointment; $40.00 for one who does not. A late renewal inside the 60-day window carries a $40 penalty for a resident individual agent.
- CE hours per renewal period, standard case tested24 hours of Kentucky-approved CE every two years
- CE hours if holding multiple license types (if different) testedStill 24 total — a person holding multiple CE-required licenses completes the hours once, credited to all
- Carryover of excess hours testedUp to 12 excess credit hours may be carried into the next continuing education biennium. The 12-hour cap is regulatory, not statutory — KRS 304.9-295 permits carryforward and lets the commissioner limit it by regulation, and 806 KAR 9:025 §5(5) sets the number. The further restriction that carried hours count only as GENERAL hours appears on the Department's CE web page rather than in either text.
- Ethics hours required per period testedAt least 3 hours in a course concentration in ethics, counted inside the 24 rather than on top of them
- Limits on who may provide CE credits testedCourses must come from a Kentucky-approved provider. Providers report completions through DOI eServices, keep rosters and certificates 5 years, and face penalties of up to $1,000 per violation. Course filing costs the provider $10 plus $5 per approved hour.
- What happens if CE is not completed (fine / expiry / cancellation) testedThe license expires unless the commissioner grants an extension, which may not exceed 2 years. False certification of CE is separately grounds for suspension, revocation or a civil penalty. Proof of CE is due within 60 days after the compliance date.
- Late renewal / reinstatement tiers testedTwo different clocks. Renewal fees received within 60 days after expiration are accepted with a penalty and NO interruption of the licence (KRS 304.9-260(2)(b)). Separately, a licensee whose licence was terminated for CE delinquency may have it reissued within 12 months of termination on completing the delinquent hours, filing a new application and paying the fees — without re-examination (806 KAR 9:025 §5(6)(b)1). Past 12 months, all licensing requirements apply again.
- Any CE exemption (e.g. long-service agents) testedCredit, crop and travel limited lines are exempt. So are licensees not licensed a full year before the biennium ends, nonresidents satisfying their home state’s requirement on a reciprocal basis, and those holding a licence solely to receive renewal or deferred commissions on a supporting affidavit. There is NO long-service or age-based exemption in Kentucky.
- Product-specific training on top of the 24 hours testedAnnuities: 4 hours of initial training before selling, soliciting or negotiating an annuity (806 KAR 9:025 §5(2)(c)). Long-term care: 8 hours initial plus 4 hours every biennial compliance period (§5(2)(a)). NFIP flood: 3 hours (§5(2)(b)). Life settlement brokers: 3 hours of life-settlement concentration inside the 24 CE hours.
Property 14 facts
Property insurance — rate regulation, residual markets, catastrophe exposure.
- Rate regulation system (file-and-use / prior approval / use-and-file) testedCOMPETITIVE / FILE-AND-USE — in a competitive market rates are filed not later than 15 days after the date of first use. Where the commissioner finds the market noncompetitive, rates must be filed at least 30 days before the proposed effective date. Two further categories need PRIOR APPROVAL and do not become effective until approved (there is no 30-day deemer for them): residual market mechanism rates, and any filing that will produce an INCREASE OR DECREASE of more than 25% from the insurer's existing rates for a classification of risks in a rating territory within a 12-month period. Note "or decrease" — the trigger runs both ways.
- Is insurance credit scoring permitted in personal lines? testedPermitted but restricted: an insurer may not decline, cancel, or nonrenew a personal auto policy SOLELY because of the applicant's credit history or lack of credit history (KRS 304.20-040).
- Does the state have a FAIR Plan? testedYES — the Kentucky FAIR Plan Reinsurance Association, which makes basic property coverage available to owners who cannot obtain it in the standard market
- Name of the FAIR Plan, if any testedKentucky FAIR Plan Reinsurance Association
- Dominant catastrophe perils in the state testedTornado, severe thunderstorm, hail and river flooding — and, distinctively, EARTHQUAKE: western Kentucky sits over the New Madrid seismic zone, and earthquake coverage and deductibles must be made available on habitational risks. There is no coastal or wind pool; Kentucky is landlocked.
- What license you must already hold to write surplus lines testedAn active Kentucky property and casualty agent licence (or health and life, for a broker placing disability coverage), plus a separate surplus lines broker licence at $100. There is NO surplus lines examination — the applicant must simply be "deemed by the commissioner to be competent and trustworthy." If the underlying agent licence lapses, the surplus lines licence terminates with it.
- Is a diligent-effort search of the admitted market required first? testedYes — a diligent effort to place the risk in the admitted market first
- Mine subsidence coverage — Kentucky’s signature property program testedA state-run reinsurance fund. In counties whose fiscal courts have voted into the programme, every policy insuring a structure there "shall include, at a separately stated premium," coverage for mine subsidence "unless waived in writing by the insured" — the default runs opposite to ordinary optional coverage. The Department states 37 participating counties. KRS 304.44-040 still permits an insurer to refuse subsidence coverage on a structure evidencing unrepaired subsidence damage until repairs are made, or where it has declined, nonrenewed or cancelled ALL coverage under the policy for underwriting reasons unrelated to mine subsidence.
- Mine subsidence limits testedA maximum of $500,000 on structures plus a maximum of $50,000 for additional living expense — $550,000 total reinsured by the Fund. The deductible is 2% of the total insured value, with a floor of $250 and a ceiling of $500. Residential rates run $16.00 for up to $50,000 of coverage to $50.00 at the $500,000 band.
- Maximum amount of insurance on a structure testedNo insurer may deliver, issue for delivery or renew a policy covering a structure in Kentucky "for an amount greater than one hundred percent (100%) of the replacement cost of the structure." Kentucky has no valued policy law — it has the opposite, an anti-over-insurance ceiling.
- Standard fire policy testedKentucky has adopted none. Property forms run through the general form filing and approval process instead, with statutory readability, legibility and English-language requirements.
- Deadline to pay a property claim tested806 KAR 12:095 §1(5) defines "days" as any day Monday through Friday except holidays, so its unqualified clocks are BUSINESS days: acknowledge notice of a claim within 15 business days, and pay within 30 business days of affirming liability. The clocks it marks expressly are calendar: affirm, deny or offer within 30 CALENDAR days of proof of loss, and send update letters every 45 CALENDAR days measured from the initial notification. Separately, KRS 304.12-235 requires payment not more than 30 days from notice and proof of claim or the settlement bears 12% per annum, plus reasonable attorney's fees where the delay was without reasonable foundation — and those fees may not be charged against the claimant's benefits.
- FAIR Plan member assessments testedA member insurer’s assessment may not annually exceed one percent (1%) of that member’s net direct premium written
- Surplus lines tax and filingsSurplus lines premium is taxed separately from the ordinary local government premium tax. Surplus lines brokers file quarterly returns to each applicable local government and an annual reconciliation with the Department and those governments by March 31.
Guaranty 13 facts
The safety nets when an insurer fails — and their limits.
- Name of the life & health guaranty association testedKentucky Life and Health Insurance Guaranty Association
- Life death benefit limit tested$300,000
- Life cash surrender / withdrawal value limit tested$100,000 net cash surrender value
- Annuity benefit limit tested$250,000 present value of annuity benefits
- Health benefit limit tested$500,000 for a health benefit plan (major medical); $300,000 for disability income and long-term care; $100,000 for other/basic health
- Aggregate per-individual cap, if any tested$300,000 aggregate per life — except up to $500,000 where a health benefit plan is involved
- Does the state follow the standard NAIC model limits? testedYes — standard NAIC model limits, with tiered health
- Name of the P&C guaranty association testedKentucky Insurance Guaranty Association
- Per-claim cap, property and casualty tested$300,000 per claimant for covered claims generally; $500,000 per insured event for cybersecurity insurance; $10,000 per policy for the return of unearned premium; and workers’ compensation claims are paid in FULL, uncapped. The association’s total obligation for any one insolvent insurer ceases at $10,000,000 in the aggregate, workers’ compensation aside.
- Is using the guaranty association as a sales inducement prohibited? testedYes — using the existence of the guaranty association for a sale, solicitation, or inducement is prohibited
- Is there a per-claim deductible? testedNo. The NAIC model imposes a $100 deductible on every covered claim; Kentucky dropped it. A Kentucky claimant recovers from the first dollar.
- High-net-worth exclusion testedA first-party claim is excluded where the insured’s net worth exceeds $10,000,000, computed on a consolidated basis including subsidiaries. The threshold was $25,000,000 before 2023 — this guaranty number got stricter, not more generous.
- Deadline to file a claim with the P&C association testedThe EARLIER of 12 months after the order of liquidation, or the final date set by the court for filing claims
Workers Comp 6 facts
Who must carry workers' compensation and what it pays.
- Is workers' compensation mandatory for private employers? testedYes — essentially every employer with one or more employees must secure workers' compensation coverage (agricultural employment is excepted)
- Employee count at which coverage is required testedKentucky requires coverage broadly, with the exemptions rather than a headcount doing the work: KRS 342.650 exempts any person employed in agriculture, domestic servants in a private home with fewer than two employees regularly employed 40 or more hours a week, persons serving a religious or charitable organisation for aid or sustenance, and certain ministers and church cemetery caretakers. The commonly-quoted "one or more employees" formulation reflects KRS 342.630, which this pass could not read directly on the LRC site — treat the headcount as unverified and the exemption list as the reliable half.
- Agency administering workers' compensation testedThe Kentucky Department of Workers' Claims, within the Education and Labor Cabinet
- Temporary total disability wage replacement rate tested66⅔% of the average weekly wage, capped at 110% of the state average weekly wage (floor 20% of the state AWW)
- Deadline to file a claim testedGive the employer notice as soon as practicable; file a claim within 2 years of the accident (or, if income benefits were paid, within 2 years of the last payment or the accident, whichever is later)
- Ways an employer may comply (insure / self-insure / group) testedInsure with a licensed carrier, or qualify as an approved self-insurer
Regulator 16 facts
Who regulates insurance here and what powers the office holds.
- Name of the state insurance regulator testedThe Kentucky Department of Insurance (DOI), within the Public Protection Cabinet
- Title of the person who heads it testedCommissioner of Insurance
- How the commissioner is chosen: elected / appointed by governor / appointed by other body testedAppointed by the Governor with the consent of the Senate, for a term not to exceed four years — not elected
- Where the state's insurance law is codified testedChapter 304 of the Kentucky Revised Statutes (the Kentucky Insurance Code), with regulations in Title 806 of the Kentucky Administrative Regulations
- Does the regulator sit somewhere unusual (e.g. inside a constitutional commission)? testedNo — a conventional Department of Insurance within the Public Protection Cabinet, headed by an appointed Commissioner
- Civil penalty ceilings, by licensee class testedNot more than $1,000 per violation for an agent, surplus lines broker or reinsurance intermediary; $2,000 per violation for an adjuster, administrator, life settlement broker or consultant; $10,000 per violation for an insurer or health organisation. These are ceilings, imposable in lieu of or in addition to suspension or revocation. There is no aggregate cap and no knowing/unknowing distinction.
- Range of disciplinary sanctions testedProbation up to 24 months, suspension, conditions, revocation, refusal to issue or renew, or a civil penalty. Grounds include cheating on a licensing examination and accepting business from an unlicensed entity — both easy to overlook.
- Deadlines to report to the Commissioner tested30 days for an administrative action in another jurisdiction or by another Kentucky governmental agency; 30 days from service of any criminal complaint, information or indictment; a further filing within 30 days of resolution; and IMMEDIATELY where a licence is surrendered or terminated under threat (KRS 304.9-467). A change of address or legal name is also 30 days, but under a different section — KRS 304.9-200(2).
- How a fraudulent insurance act is graded testedBy dollar value: a Class A misdemeanour at the base; a Class D felony at $500 or more but less than $10,000; a Class C felony at $10,000 or more but less than $1,000,000; a Class B felony at $1,000,000 or more. Restitution may run to the victims and to the Division for the cost of the investigation.
- Mandatory fraud warning on applications and claim forms testedApplications and claim forms must state in substance that a person who knowingly and with intent to defraud files an application (or a statement of claim) containing materially false information, or conceals information concerning a material fact for the purpose of misleading, "commits a fraudulent insurance act, which is a crime." Reinsurers are exempt.
- Powers of the Division of Insurance Fraud Investigation testedSpecial investigators hold general police powers including the power to arrest, and all the common-law and statutory powers, privileges and immunities of sheriffs, with statewide jurisdiction. Reporting suspected fraud is mandatory for insurers, agents and adjusters.
- Local government premium tax testedKentucky cities, counties and urban-county governments may tax premiums on risks located inside their limits, keyed to the actual physical address of the risk rather than a mailing address or ZIP code. The insurer or agent may retain a collection fee of not more than 15% of the tax collected OR 2% of the premium subject to the tax, WHICHEVER IS LESS. Remittance is due 30 days after each calendar quarter ends. Individual health policies and workers’ compensation are exempt.
- The Commissioner’s subpoena power testedSubpoenas have "the same force and effect as if issued from a court of record"; noncompliance is enforceable by Circuit Court order and punishable as contempt; false testimony is perjury. Domestic insurers must be examined not less frequently than every five years — a floor, not a ceiling.
- How Kentucky regulates premiums held by a producer testedPremiums payable to an insurer are held "in a fiduciary capacity" and may not be misappropriated, converted or illegally withheld. Kentucky does NOT prescribe a named trust account or a remittance deadline in days — the old agents’ records regulation, 806 KAR 9:050, is repealed, and enforcement runs through the fiduciary duty plus the conversion ground for discipline.
- Rebating — the 2022 reform testedThe old $25 aggregate gift ceiling was DELETED from KRS 304.12-110 in 2022. In its place, KRS 304.12-092 permits non-cash gifts up to $250 per person per year where receipt is not contingent on purchase or renewal; no-cost-to-enter sweepstakes whose prizes do not exceed $500 in value, or whose combined prize value divided by the number of entrants is less than $10; free or discounted products or services that assess, monitor, mitigate or prevent risk; and charitable contributions unconnected to a transaction. A DOI advisory opinion from 2004 still on the Department’s site repeats the dead $25 figure.
- Where the unfair trade practices actually sitTwisting is at KRS 304.12-030; false financial statements at -040; advertisement of assets at -050; defamation at -060; boycott, coercion and intimidation at -070; unfair discrimination at -080; rebates at -090; the gift and sweepstakes safe harbour at -092; the EXCEPTIONS to the discrimination and rebate prohibitions at -100; illegal inducements at -110; and the catch-all "curtailment of undefined practices" at -130.
Cancellation 11 facts
When and how policies can be canceled or nonrenewed — heavily tested.
- Initial window during which an insurer may cancel more freely tested60 days — the cancellation-reason restrictions do not apply to an auto policy in force fewer than 60 days (but 14 days' notice is still required)
- Notice days to cancel a homeowners policy inside the initial window tested75 days' notice to cancel homeowners in force more than 60 days; 14 days for nonpayment or within the first 60 days; a specific reason is required
- Notice days to cancel a personal auto policy inside the initial window testedAt least 20 days' notice to cancel auto; 14 days for nonpayment (with the reason)
- Notice days for cancellation for nonpayment tested14 days for nonpayment of premium (auto and homeowners)
- Notice days for cancellation for other permitted causes tested20 days for permitted causes (auto)
- Notice days required for nonrenewal tested75 days' advance notice of nonrenewal for both auto and homeowners, and the reason must accompany the notice
- Must the reason be stated proactively, on request, or not at all? testedYes — a specific reason must accompany a cancellation or nonrenewal notice (auto and homeowners)
- Notice required for a large premium increase testedAt least 75 days before the end of the policy period where the premium increase exceeds 25%
- Permitted grounds to cancel an auto policy midterm after 60 days testedFive, and only five: nonpayment of premium; suspension or revocation of the driver’s licence or vehicle registration; fraud or material misrepresentation; wilful acts or omissions increasing the hazard; or a commissioner determination that continuing the policy violates the law. A policy in force fewer than 60 days is not restricted to these grounds — unless it is a renewal policy.
- How specific the stated reason must be testedSpecific grounds are required; an insurer "shall not rely on general underwriting reasons." The exception is where information indicates the insured contributed to the loss by arson or fraud.
- What counts as proof the notice was given testedProof of mailing the notice to the named insured at the address shown in the policy "shall be sufficient proof of notice"
Licensing 28 facts
How you get and keep the license — exams, fees, applications, background checks.
- Is there a standalone life license/exam? testedYes — a Life line with its own exam
- Is there a standalone health license/exam? testedYes — a Health line with its own exam
- Is there a combined life+health license/exam? testedNo combined Life & Health exam — Kentucky's exams are separate single-line exams. A candidate pursuing both sits the Life exam and the Health exam separately.
- Is there a personal lines license/exam? testedYes — a Personal Lines line with its own exam
- Is P&C one combined license, or split into Property and Casualty? testedSeparate lines — Kentucky offers Property and Casualty as SEPARATE exams and lines of authority, plus a Personal Lines line. There is no single combined P&C exam.
- Does the life license cover annuities? testedYes — annuities are sold under the Life line (Variable Life and Variable Annuity is a separate line that requires FINRA registration; there is no separate variable exam)
- Does the P&C license already include personal lines authority? testedNo — Personal Lines is its own line, but holding Property and Casualty covers personal-lines risks
- Full list of exam-based agent license types testedOne Kentucky producer license listing any of: Life · Health · Property · Casualty · Personal Lines · Variable Life and Variable Annuity — plus limited lines (Credit, Crop, Travel)
- Exam administrator (Prometric / PSI / Pearson VUE) testedNONE — the Kentucky Department of Insurance writes, schedules, administers and grades its own examinations, so there is no candidate handbook. KRS 304.9-160 permits the commissioner to contract with an outside testing service for examinations; Kentucky has not done so. Note the distinction: PSI Services DOES hold a Department contract, but to administer continuing-education and pre-licensing provider and course approval, not to test licence applicants.
- Exam fee tested$50 per examination, retakes included. Property and casualty sat at the same time are $50 TOTAL, not $100. Fees are earned when paid and are not refundable.
- License application fee tested$40 for the resident individual license, plus $40 per line of authority
- Fee per insurer appointment tested$40 per appointment (per insurer)
- Passing score tested70% — a raw percentage of questions answered correctly, not a scaled score
- Minimum age to be licensed tested18
- Is pre-licensing education required? testedYES — and the hours are tiered, not flat: 40 hours for life and health, 40 hours for property and casualty, or 20 hours for each single line of authority. The DOI web page says a flat "20-hour" course and understates the combined tiers; the regulation controls.
- Pre-licensing hours and any exceptions (e.g. Title, adjusters) tested20 hours per single line; 40 hours for life and health together; 40 hours for property and casualty together. Classroom or self-study. The completion certificate is valid one year. Variable life/variable annuity authority and limited lines are exempt.
- Fingerprints, state police report, or none testedNO FINGERPRINTING. Kentucky requires a name-based criminal record report from the Administrative Office of the Courts instead — there is no ORI code, no IdentoGO, Fieldprint or IDEMIA appointment, and no FBI channel.
- Who takes the prints / issues the report testedThe Kentucky Administrative Office of the Courts (AOC), through AOCFastCheck at kycourts.gov. The applicant downloads the report and uploads it to their DOI eServices account — it does not go to NIPR.
- Where you apply (Sircon / NIPR / state portal) testedTWO portals, both required: NIPR (nipr.com) for the application and fee, and the DOI eServices portal for document upload, exam scheduling, CE tracking and printing the license certificate. Sircon is not named by the Department as a Kentucky channel.
- Order of operations: exam first or application first? testedAPPLICATION FIRST — the reverse of most states. "If an examination is required, the documents and fees required in subsection (1) of this section shall be submitted prior to scheduling an examination." Prelicensing, then apply and pay on NIPR, then the AOC report, then upload to eServices, then the Department releases exam scheduling.
- How long the application stays alive tested120 days from the date the Department receives it. Because Kentucky applies before the exam, this window — not a score-validity rule — is the real clock. The old regulation on how long examination results stay valid, 806 KAR 9:180, was repealed and nothing replaced it.
- Retake waiting period and attempt limit testedNo waiting period and no cap — you may rebook for the next business day and retest an unlimited number of times inside the 120-day application window. Each retake needs Form 8304 and another $50.
- Do professional designations (CLU, ChFC, CPCU) waive the exam? testedNO. Kentucky grants no designation-based waiver of examination or prelicensing. The only exemptions are prior licensure — same lines in Kentucky within 12 months, or same lines in another state if currently licensed there or within 90 days of cancellation in good standing.
- Financial responsibility required of an agent testedYes, and it applies to every agent applicant: errors-and-omissions cover of not less than $20,000 per occurrence and $100,000 aggregate in any one year, OR a $20,000 cash surety bond, OR an exclusive-agent insurer’s assumption of responsibility of $20,000 per occurrence.
- Deadline for an insurer to file an appointment testedWithin 15 days of the date the agent contract is executed OR the first insurance application is submitted, whichever is earlier. The agent may transact for those 15 days pending approval.
- Temporary license testedAvailable, not to exceed 180 days, $20, with no examination or prelicensing — for a surviving spouse or court-appointed representative of a deceased or disabled agent, a business entity whose sole designated licensee dies or is disabled, an agent entering Armed Forces service, or wherever the commissioner deems the public interest served. A sponsor may be required.
- Published exam lengthThe Department publishes two figures that do not reconcile. Its per-line study outlines are built on 50 questions; its examination web page carries one blanket sentence reading "Each exam is 150 questions, that requires 190 minutes to complete." The outlines are the only per-line source. Confirm at scheduling — DOI Licensing, (502) 564-6004.
- Personal belongings and visitors at the test siteThe Department does publish a personal-property instruction, though not a formal prohibited-items list and no calculator policy: "Lock all personal belongings inside vehicle — purse, laptop, study materials, cellphones, smart watches, etc." and "No visitors are allowed inside during testing." Examinations cannot be rescheduled for the same day, and special accommodations must be approved by Licensing BEFORE scheduling (DOI.LicensingMail@ky.gov).