PUBLIC PROTECTION CABINET

Department of Insurance

Commissionerís Office

(As Amended at ARRS, September 11, 2017)

 

††††† 806 KAR 7:011. Repeal of 806 KAR 7:010.

 

††††† RELATES TO: KRS 304.7-340

††††† 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 KRS 13A.310 requires that an administrative regulation, once adopted, cannot be withdrawn, but shall be repealed if it is desired that it no longer be effective.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 7:010, Loans to relatives, prohibited investments, because the statutory authority for this regulation, KRS 304.7-340, has been repealed. Additionally, such loans are governed more appropriately by KRS 304.7-363, 304.7-365, and responsible corporate officer and fiduciary duty laws with the emphasis on whether the officer or director receives a benefit or has a financial interest for determining if there is a prohibited investment.

 

††††† Section 1. 806 KAR 7:010, Loans to relatives; prohibited investments, is hereby repealed.

 

NANCY G. ATKINS, Commissioner

DAVID A. DICKERSON, Secretary

††††† APPROVED BY AGENCY: July14, 2017

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

††††† CONTACT PERSON: Patrick D. OíConnor II, Kentucky Department of Insurance, 215 W. Main Street, Frankfort, Kentucky 40601, phone (502) 564-6026, fax (502) 564-2669, email Patrick.oconnor@ky.gov.