Kentucky Department of Insurance (DOI)

The Kentucky Department of Insurance (DOI) is the state agency responsible for regulating the Property & Casualty insurance industry in Kentucky. The Department operates under the Public Protection Cabinet and plays a critical role in protecting Kentucky consumers while ensuring a healthy insurance marketplace.

The Commissioner of Insurance

The Kentucky Commissioner of Insurance is:

• Appointed by the Governor with consent of the Kentucky Senate (not elected like some states)
• Serves a term of up to four years
• Chief regulator of Kentucky's insurance industry
• Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
• Supported by the Kentucky Department of Insurance staff

Current Structure (2026)

Sharon P. Clark serves as Kentucky's Insurance Commissioner, appointed by Governor Andy Beshear in 2020. The Commissioner's office is located in Frankfort, Kentucky, and oversees all insurance operations in the Commonwealth.

Exam Tip: The Kentucky Insurance Commissioner is APPOINTED by the Governor with Senate consent, not elected. This is a common exam question. Compare this to Oklahoma, where the Commissioner is elected by voters.

Commissioner Powers for P&C Insurance

Rate Regulation in Kentucky

Kentucky uses a file-and-use system for most P&C insurance:

Key Provisions of File-and-Use System

• File-and-Use: Insurers file rates with the Department and may use them immediately (no prior approval required)
• Immediate Implementation: Rates become effective upon filing without waiting for approval
• Post-Filing Review: Department reviews filed rates for compliance after implementation
• Rate Standards: Rates must not be excessive, inadequate, or unfairly discriminatory
• Commissioner Authority: Commissioner may disapprove rates after review and order modifications
• Hearing Process: Insurers may contest rate disapprovals through administrative hearings

File-and-Use Process in Kentucky

1. Insurer Files Rates: Submit rate filing with actuarial justification to Kentucky DOI
2. Immediate Use: Rates effective immediately upon filing (no waiting period)
3. DOI Review: Department reviews filing for compliance with rate standards (typically 30-90 days)
4. Approval or Disapproval: Commissioner approves or orders rates modified
5. Insurer Response: If disapproved, insurer may modify rates or request hearing
6. Administrative Hearing: Contested rate disapprovals resolved through hearing process

Exam Tip: Kentucky uses file-and-use, NOT prior approval. Insurers can implement rates immediately after filing, but the Commissioner reviews them and may disapprove. This differs from prior approval states where insurers must wait for approval before using new rates.

Rate Standards Under KRS Chapter 304

Kentucky law requires that P&C insurance rates must be:

1. Not Excessive

• Rates should not be unreasonably high relative to benefits provided
• Insurers must justify rate levels with actuarial data
• Commissioner may order rate reductions if rates are excessive

2. Not Inadequate

• Rates must be sufficient to maintain insurer solvency
• Inadequate rates threaten insurer's ability to pay claims
• Rates must support reserve requirements

3. Not Unfairly Discriminatory

• Rate differences must be based on sound actuarial principles
• Similar risks must be charged similar rates
• Rate classifications must be justified by loss experience
• Prohibited discrimination based on race, religion, national origin, or other protected classes

Exam Tip: The three rate standards—not excessive, not inadequate, not unfairly discriminatory—appear frequently on Kentucky P&C exams. Know these standards cold.

Kentucky Revised Statutes (KRS) Chapter 304

Structure of KRS Chapter 304

Kentucky insurance regulation is codified in KRS Chapter 304, which contains numerous subtitles covering different aspects of insurance law:

Key Subtitles of KRS Chapter 304:

Important Kentucky Insurance Laws for P&C

KRS 304.2-020: Appointment and Powers of Commissioner

• Commissioner appointed by Governor with Senate consent
• Term up to four years
• Powers to regulate insurance industry

KRS 304.9-020 to 304.9-440: Insurance Agents and Consultants

• Producer licensing requirements
• Pre-licensing education (20 hours Property + 20 hours Casualty)
• Continuing education mandates (24 hours/2 years)
• Producer duties and responsibilities

KRS 304.12-020 to 304.12-235: Unfair Trade Practices

• Prohibited practices in insurance business
• Misrepresentation and false advertising
• Unfair discrimination
• Rebating prohibitions
• Penalties for violations

KRS 304.13-011 to 304.13-325: Consumer Protection

• Policy cancellation and non-renewal restrictions
• Claims handling requirements
• Grace periods and reinstatement
• Consumer disclosures

KRS 304.39-020 to 304.39-340: Motor Vehicle Reparations Act

• Kentucky's no-fault auto insurance system
• $10,000 basic PIP requirement
• Optional PIP rejection provisions
• Tort threshold and limitations

Exam Tip: You don't need to memorize all subtitle numbers, but understand that KRS Chapter 304 is Kentucky's comprehensive insurance code. Focus on Subtitles 304.9 (producers), 304.12 (unfair practices), and 304.39 (auto insurance).

Kentucky DOI Organization

The Kentucky Department of Insurance operates through several functional divisions:

Key Divisions and Sections

Kentucky DOI Contact Information

Main Office:

• Address: 500 Mero Street, 2SE, Frankfort, KY 40601
• Phone: (502) 564-3630 (main line)
• Consumer Protection Hotline: (800) 595-6053 (toll-free)
• Email: insurance.info@ky.gov
• Website: insurance.ky.gov

Licensing Inquiries:

• Phone: (502) 564-6004
• Email: DOI.LicensingDivision@ky.gov
• Online Portal: Apply through NIPR (www.nipr.com)

Exam Tip: The Consumer Protection Hotline is (800) 595-6053. Kentucky DOI's main phone number is (502) 564-3630. These numbers may appear on exam questions.

Consumer Protection Functions

Consumer Protection Services

The Kentucky DOI provides comprehensive consumer protection through:

Consumer Services:

• Complaint Investigation: Investigates complaints against insurers and producers
• Mediation: Facilitates dispute resolution between consumers and insurers
• Consumer Education: Provides guides, brochures, and online resources
• Fraud Prevention: Works with law enforcement on insurance fraud cases
• Rate Review: Monitors premium rates for excessive or unfair increases

Complaint Process in Kentucky

1. Consumer Files Complaint: Online at insurance.ky.gov, by phone (800) 595-6053, or by mail
2. DOI Review: Department reviews complaint and determines jurisdiction
3. Complaint Assignment: Assigned to examiner for investigation
4. Insurer/Producer Contact: DOI contacts entity for response (typically 20-30 days)
5. Investigation: DOI investigates if warranted based on responses
6. Resolution: DOI works to resolve dispute through mediation or enforcement action
7. Follow-up: DOI tracks outcomes and consumer satisfaction
8. Enforcement: Violations may result in fines, license suspension, or revocation

Common Consumer Complaints in Kentucky

Exam Tip: Understanding Kentucky's consumer complaint process is important for the exam. The DOI investigates complaints, mediates disputes, and can take enforcement action against insurers or producers who violate Kentucky law.