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Kentucky insurance laws

Insurance regulations, rate filing requirements, department info, and recent bulletins for Kentucky. Updated Mar 31, 2026.

Department of Insurance

DepartmentKentucky Department of Insurance
CommissionerSharon P. Clark
Rate Filing SystemPrior Approval
Regulatory CodeKRS Chapter 304 (Kentucky Revised Statutes §§ 304.1-010 through 304.99-060)
Overview

Kentucky operates under a Prior Approval rate filing system, requiring insurers to obtain regulatory approval before implementing rate changes. The state expanded Medicaid under the ACA and operates kynect, a state-based health insurance marketplace. Kentucky maintains comprehensive consumer protection laws including oversight of insurance fraud, cybersecurity requirements, and robust regulations across all insurance lines.

Auto Insurance

Min Pd$25,000
Pip Min$10,000
StatuteKRS 304.39-110
Fault SystemChoice No-Fault
Min Bi Per Person$25,000
Uninsured Penalty$500 to $1,000 fine and up to 90 days in jail for first offense; $1,000 to $2,500 fine and up to 180 days in jail for second offense; license suspension and registration revocation
Min Bi Per Accident$50,000
Sr22 Duration Years3
Noncompliance PenaltyInsurers violating auto insurance requirements face fines up to $25,000 per violation under KRS 304.99-020, license suspension or revocation under KRS 304.2-270, and potential civil penalties
Rate Filing RequirementPrior approval required under KRS 304.13-020 for all rate changes; rates must be filed before use and approved by the Commissioner
Avg Full Coverage Premium$1,600

Notable Laws

  • KRS 304.39-110 establishes mandatory minimum liability coverage of 25/50/25
  • KRS 304.39-020 requires $10,000 minimum PIP coverage for medical expenses and work loss
  • KRS 304.39-320 mandates insurers offer uninsured and underinsured motorist coverage
  • KRS 186A.040 requires online insurance verification system for all motor vehicles
  • KRS 304.39-080 allows rejection of PIP coverage in favor of tort liability system

Homeowners Insurance

StatuteKRS 304.20-320
Wind PoolN/A
Fair Plan NameKentucky FAIR Plan Reinsurance Association
Noncompliance PenaltyInsurers violating homeowners insurance requirements face fines up to $25,000 per violation under KRS 304.99-020 and potential license suspension
Rate Filing RequirementPrior approval required under KRS 304.13-020 for homeowners insurance rates; insurers must file rates before use

Notable Laws

  • KRS 304.20-320 requires 60 days notice for nonrenewal of homeowners insurance policies
  • KRS 304.20-330 establishes permitted reasons for cancellation after 60 days of coverage
  • KRS 304.35-010 creates Kentucky FAIR Plan for property owners unable to obtain standard market coverage
  • KRS 304.44-030 provides mine subsidence insurance coverage up to $500,000 per structure
  • KRS 304.20-047 prohibits cancellation or rate increase based solely on coverage inquiry

Recent Bulletins

Use of Satellite/Aerial Imagery as Basis for Cancellations, Nonrenewals, and Claim Denials

#2026-012026-03-11

Provides guidance to insurers on the use of satellite and aerial imagery in underwriting decisions and claims handling, establishing standards for cancellations and nonrenewals based on such imagery.

View bulletin

Dental Benefit Assignments

#2025-052025-12-15

Addresses requirements for insurers to honor written assignments of dental benefits from covered persons to dental service providers, implementing HB 210 from the 2025 legislative session.

View bulletin

Enforcement of Senate Bill 188 (2024 Regular Session)

#2025-032025-06-30

Provides guidance on enforcement of SB 188 relating to patient access to pharmacy benefits, including pharmacy network adequacy, contract requirements, and minimum reimbursement amounts.

View bulletin

Insurance Legislation enacted by the 2025 General Assembly

#2025-022025-05-28

Comprehensive summary of all insurance-related legislation passed during the 2025 Kentucky General Assembly, including 13 bills affecting property/casualty, health, life, and other insurance lines.

View bulletin

2025-2026 LGPT Bulletin

#2025-012025-04-22

Outlines updated procedures, forms, and requirements for insurance companies and surplus lines brokers regarding Local Government Premium Tax (LGPT) compliance for the 2025-2026 fiscal year.

View bulletin

Recent Law Changes

Senate Bill 242025Property and Casualty

Insurance Fraud - Misrepresentation of Damages

Amends KRS 304.47-010 and 304.47-020 to establish that statements misrepresenting the scope of damages, including repair costs and expenses, associated with property or casualty insurance claims are fraudulent insurance acts, with exception for legal counsel offers in disputed bodily injury claims.

Insurers gain stronger tools to combat fraudulent claims; contractors and public adjusters face penalties for inflated damage estimates.

Effective: 2025-06-27

House Bill 902025Health

Maternal Health and Freestanding Birthing Centers

Establishes licensing and regulation requirements for freestanding birthing centers within the Cabinet for Health and Family Services; amends KRS 216B.015 to include freestanding birthing centers in the definition of health facility and health care provider under KRS 304.17A-005.

Health insurers must cover services at licensed freestanding birthing centers as health care providers, expanding maternal care options.

Effective: 2025-03-28

House Bill 2102025Health

Dental Benefit Assignments

Creates new section of KRS 304.17C-130 through 304.17C-138 requiring insurers providing dental benefit plans to honor written assignments of benefits from covered persons to dental service providers on Department-established forms.

Dental insurers must process direct payments to dentists when patients assign benefits, streamlining claims payment processes.

Effective: 2026-01-01

House Bill 3902025Auto

Online Insurance Verification System

Requires the Transportation Cabinet to create an accessible online insurance verification system for motor vehicles; mandates all insurers providing coverage under KRS 304.39-080 comply with online verification requirements; establishes technical advisory committee.

Auto insurers must integrate with state online verification system, enabling real-time insurance status checks for law enforcement and registration.

Effective: 2025-06-27

House Bill 1792024Life and Health

Paid Family Leave Insurance

Creates new insurance product called "paid family leave insurance" under KRS Chapter 304, allowing life and health insurers to offer group disability income insurance that pays percentage of employee income loss for absences not based on disability (e.g., family care, parental leave).

Employers can now purchase voluntary paid family leave insurance as group coverage, giving Kentucky workers access to income replacement for family care needs.

Effective: 2024-04-05

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