Insurance Code

• Kentucky Revised Statutes, Title XXV Business and Financial Institutions, contains one lengthy section, Chapter 304, known as the Kentucky Insurance Code. This section of Kentucky law outlines the regulations by which insurance providers can be licensed to conduct business within the commonwealth, defines terminology associated with insurance and provides legal guidelines for all types of insurance contracts. In addition, several subsections of the chapter regulate specific provisions of health and life insurance policies.
  
  

Grace Period

• KRS 304.15 deals exclusively with life insurance. Among the laws on the books are statutes regulating the payment of premiums and policyholders' rights. Enacted in June 1970, KRS 304.15-060 deals with the grace period on premium payments. The law explicitly states that policy holders have a grace period of not less than 30 days to make the premium payment on a life insurance policy without fear of the policy lapsing. The law further stipulates that should a claim on the provisions of the policy be made during the grace period, the amount owed the insurance provider can be deducted, along with interest at the insurer's discretion, from the coverage amount before the claim being met.
  
  

Provisions for Newborns

• Chapter 304, Subtitle 17 of KRS is one of several sections of Kentucky law that deals exclusively with health insurance. For example, KRS 304.17-042 states that all health insurance policies issued in the state on and after July 15, 1994, must cover newborns of the insured for a minimum period of 31 days. The law states that coverage must begin at the moment of birth for a child of the insured, regardless of whether the policyholder's contract specifies only individual health insurance coverage or family coverage. However, after the initial 31-day period, the insurance provider can require the policyholder to amend the coverage by the payment of additional premium amounts to continue the coverage on the newborn
  
  

Salvage Vehicles

• Additional sections of Kentucky law incorporate insurance regulations where applicable. A number of Kentucky laws governing the use and ownership transfer of motor vehicles within the state are written in Title XVI of the Revised Statutes. Chapter 186A of Title XVI deals specifically with the transparency required in the transfer and registration of salvage vehicles. One provision of the laws in this section grants insurance providers the right to refuse to pay claims on covered vehicles that equal or exceed 75 percent of the value of the vehicle unless the policyholder relinquishes the title to the vehicle to the insurance provider or applies to the state for a salvage title.