PUBLIC PROTECTION CABINET

Department of Insurance

Commissioner’s Office

(Repealer)

 

      806 KAR 5:031. Repeal of 806 KAR 5:030 and 806 KAR 5:040.

 

      RELATES TO: KRS 304.5-010, 304.9-030, 304.5-080

      STATUTORY AUTHORITY: KRS 13A.310, 304.2-110

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.2-110 authorizes the Commissioner of the Department of Insurance to promulgate administrative regulations necessary for or as an aid to the effectuation of any provision of the Insurance Code. KRS 13A.310 requires that an administrative regulation, once adopted, cannot be withdrawn, but shall be repealed if it is desired that it no longer be effective. This administrative regulation repeals 806 KAR 5:030, Surety insurance not to include bail bonds, because KRS 431.510 prohibits the furnishing or making of bail bonds. This administrative regulation also repeals 806 KAR 5:040, Nationwide marine definition, because it conflicts with the statutory definition of "marine and transportation insurance" in KRS 304.5-080.

 

      Section 1. The following administrative regulations are hereby repealed:

      (1) 806 KAR 5:030, Surety insurance not to include bail bonds; and

      (2) 806 KAR 5:040, Nationwide marine defined.

 

NANCY G. ATKINS, Commissioner

DAVID A. DICKERSON, Secretary

      APPROVED BY AGENCY: July 14, 2017

      FILED WITH LRC: July 14, 2017 at 11 a.m.

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on August 23, 2017 at 9:30 a.m. Eastern Time at the Kentucky Department of Insurance, 215 W. Main Street, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify the Kentucky Department of Insurance in writing by August 16, 2017, five working days prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted if received at or before 11:59 pm on August 31, 2017. Please send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person below.

      CONTACT PERSON: Patrick D. O’Connor II, Kentucky Department of Insurance, 215 W. Main Street, Frankfort, Kentucky 40601, phone (502) 564-6026, fax (502) 564-266,

email Patrick.oconnor@ky.gov

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Patrick D. O’Connor II

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This regulation repeals 806 KAR 5:030 and 806 KAR 5:040.

      (b) The necessity of this administrative regulation: This administrative regulation repeals 806 KAR 5:030, Surety insurance not to include bail bonds, because KRS 431.510 prohibits the furnishing or making of bail bonds. This administrative regulation also repeals 806 KAR 5:040, Nationwide marine definition, which conflicts with the statutory definition of "marine insurance and transportation insurance" in KRS 304.5-080.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 304.2-110(1) authorizes the Commissioner of the Department of Insurance to promulgate administrative regulations necessary for or as an aid to the effectuation of any provision of the Kentucky Insurance Code. KRS 13A.310 states that an administrative regulation shall only be repealed by the promulgation of an administrative regulation. This administrative regulation is repealing two (2) obsolete administrative regulations.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation repeals two (2) administrative regulations that are no longer necessary.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: Not applicable.

      (b) The necessity of the amendment to this administrative regulation: Not applicable.

      (c) How the amendment conforms to the content of the authorizing statutes: Not applicable.

      (d) How the amendment will assist in the effective administration of the statutes: Not applicable

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: This administrative regulation will not have a direct impact on insurers or other regulated entities as it repeals an administrative regulation that was promulgated pursuant to obsolete statutes and does not change existing business practices of the Department of Insurance.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: Regulated entities will not be required to take any action because of this administrative regulation.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There will be no cost to comply with this administrative regulation.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Not applicable.

      (5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

      (a) Initially: There will not be an initial cost to implement this administrative regulation.

      (b) On a continuing basis: There will not be a continuing cost related to this administrative regulation.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: No funding will be necessary.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: No increase in fees or funding will be necessary.

      (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: This administrative regulation did not directly or indirectly establish any fees.

      (9) TIERING: Is tiering applied? Tiering is not applied because the requirements of this regulation apply equally to all insurance companies, corporate sureties, or other entities.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Kentucky Department of Insurance.

      2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 304.2-110 and KRS 13A.310.

      3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? This administrative regulation will not generate any revenue for state or local government.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation will not generate any revenue for state or local government.

      (c) How much will it cost to administer this program for the first year? The Department does not anticipate any cost to administer the repeal of these regulations.

      (d) How much will it cost to administer this program for subsequent years? The Department does not anticipate any cost to administer the repeal of these regulations.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation: