Kentucky HB527 Insurance Regulatory Requirements
Summary
Kentucky Governor signed HB527, amending multiple sections of the Kentucky Revised Statutes related to insurance regulation. The legislation modifies licensing requirements for agents, adjusters, and agencies; updates examination authority for the insurance commissioner; establishes individual designation requirements for business entities; modifies continuing education and prelicensing requirements; and revises appeal procedures for adverse benefit determinations in health insurance. The bill declares an emergency, indicating immediate effect.
What changed
HB527 makes comprehensive amendments to Kentucky insurance law across numerous statutory sections. Key changes include: establishing individual designation requirements for licensed business entities under KRS 304.9-133; modifying nonresident license requirements to allow nonresidents with limited line authority not offered in Kentucky to obtain a Kentucky license under KRS 304.9-140; requiring proof of continuing education compliance for nonresident independent or public adjusters designating Kentucky as their home state; replacing adverse determination definitions with adverse benefit determination and coverage denial definitions; requiring internal appeals for adverse benefit determinations and external review for adverse benefit determinations other than coverage denials under KRS 304.17A-607; and establishing requirements for optional maturity dates on individual deferred annuities under KRS 304.15-365.
Insurance agents, agencies, adjusters, and administrators operating in Kentucky must review updated licensing procedures, continuing education requirements, and financial responsibility standards. Property insurers must prepare to offer optional roof structure upgrade provisions for non-FORTIFIED dwellings. Health insurers and third-party administrators must implement revised internal appeal and external review processes compliant with the new adverse benefit determination framework. The emergency declaration suggests these changes take effect immediately upon signing.
What to do next
- Review and update internal licensing procedures to align with new individual designation requirements for business entities
- Verify compliance with modified nonresident license and continuing education requirements
- Update claims appeal processes to reflect new internal appeal and external review procedures for adverse benefit determinations
Penalties
Civil penalties for specialty credit producers and managing employees are repealed under amended KRS 304.99-020 and 304.99-100.
Archived snapshot
Apr 8, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
ChangeBridge / Kentucky / HB527 Signed by Governor HB527 House Bill Signed by Governor 2026-04-07
AN ACT relating to insurance regulatory requirements and declaring an emergency.
Amend KRS 304.1-050 and 304.1-110 to make technical amendments; amend KRS 304.2-160 to define "licensee"; amend KRS 304.2-220 to modify persons who are subject to examination by the insurance commissioner; amend KRS 304.4-040 to apply license revocation for failure to pay tax or fee to licensees; amend KRS 304.5-080 to define "inland marine insurance" and repeal the definition of "marine and transportation insurance"; amend KRS 304.9-035 to provide for an insurer's liability for acts of its adjusters; amend KRS 304.9-051 to provide that certain individuals working for an administrator are not acting as an administrator; amend KRS 304.9-105 to modify financial responsibility requirement for an agent license; amend KRS 304.9-133 to establish individual designation requirements for licensed business entities; amend KRS 304.9-085 to conform; amend KRS 304.9-135 to modify the definition of "insurance agency activities"; amend KRS 304.9-140 to establish nonresident license requirements for nonresidents with a limited line of authority that is not offered in this state; repeal the requirement to surrender a license upon termination; amend KRS 304.9-170 to modify prelicensing education and examination exemption for applicants licensed within previous 12 months; amend KRS 304.9-200 to repeal refund of appointment fee upon license refusal; amend KRS 304.9-230 to repeal the surety limited line of authority and establish preneed funeral limited line of authority; amend KRS 304.9-260 to repeal the requirement to send license renewal list to an insurer or employer; require proof of compliance with continuing education requirements for nonresident independent or public adjusters; repeal the requirement to surrender license upon termination; amend KRS 304.9-270 to repeal approval requirement for specialty credit producers and managing employees; amend KRS 304.9-295 to require nonresident independent and public adjusters that designated Kentucky as their home state to satisfy continuing education requirements; modify requirements for continuing education certifications; repeal license surrender and reissuance requirement; repeal and reenact KRS 304.9-436 to provide that authorized insurers shall not do business with unlicensed persons; amend KRS 304.13-346 to require property insurers to offer an optional policy provision to upgrade the roof structure of non-FORTIFIED dwellings; amend KRS 304.13-400 to repeal workers' compensation insurance deductible range; amend KRS 304.14-120 to conform; amend KRS 304.15-365 to establish requirements for optional maturity dates offered for individual deferred annuities; amend KRS 304.17A-600, 304.17A-607, 304.17A-617, and 304.17A-623 to define "adverse benefit determination" and "coverage denial"; repeal definition of "adverse determination"; require internal appeal for adverse benefit determinations; require external review for adverse benefit determinations, other than coverage denials; amend KRS 304.17A-619, 304.17A-621, and 304.17A-625 to conform; amend KRS 304.99-020 and 304.99-100 to repeal civil penalties and renewal requirements for specialty credit producers and managing employees; make technical amendments throughout.
Bill Details
State Kentucky
Session 2026 Regular Session
Chamber House
Official Source apps.legislature.ky.gov/record/26RS/hb527....
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Sponsors
Michael Pollock (Rep - R) George Brown (Rep - D)
Action History
2026-04-07 H signed by Governor 2026-03-26 H delivered to Governor 2026-03-26 H enrolled, signed by President of the Senate 2026-03-26 H enrolled, signed by Speaker of the House 2026-03-26 H received in House 2026-03-25 S 3rd reading, passed 38-0 2026-03-24 S passed over and retained in the Consent Orders of the Day 2026-03-20 S posted for passage in the Consent Orders of the Day for Tuesday, March 24 2026 2026-03-18 S 2nd reading, to Rules as a consent bill 2026-03-17 S reported favorably, 1st reading, to Consent Calendar 2026-03-13 S to Banking & Insurance (S) 2026-02-23 S to Committee on Committees (S) 2026-02-23 S received in Senate 2026-02-20 H 3rd reading, passed 92-0 with Committee Substitute (1) and Committee Amendment (1-title) 2026-02-19 H posted for passage in the Regular Orders of the Day for Friday, February 20 2026 2026-02-19 H 2nd reading, to Rules 2026-02-18 H reported favorably, 1st reading, to Calendar with Committee Substitute (1) and Committee Amendment (1-title) 2026-02-05 H to Banking & Insurance (H) 2026-01-29 H to Committee on Committees (H) 2026-01-29 H introduced in House
Votes
2026-02-20 House: Veto Override RCS# 122 Yea: 92 Nay: 0 2026-03-25 Senate: Third Reading RSN# 4009 Yea: 38 Nay: 0
Committee Referrals
2026-01-29 H Committee On Committees 2026-02-05 H Banking and Insurance 2026-02-19 H Rules 2026-02-23 S Committee on Committees 2026-03-13 S Banking and Insurance 2026-03-18 S Rules
Amendments
0000-00-00 House Committee Substitute 0000-00-00 House Committee Substitute 0000-00-00 House Committee Substitute 0000-00-00 House Committee Substitute 0000-00-00 House Committee Substitute 0000-00-00 House Committee Amendment
Bill Text Versions
0000-00-00 Introduced 0000-00-00 Engrossed
Subjects
Licensing State Agencies Technical Corrections Workers Compensation Actuarial Analysis Health Benefit Plan Mandate State Employee Health Plan Mandate Local Mandate Disasters And Recovery Efforts Health and Medical Services Insurance Insurance, Health Investments Legislative data powered by LegiScan (CC BY 4.0)
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