SB 18 — AN ACT relating to insurance requirements for certain vehicle business licensees.

UNOFFICIALCHAPTER COPY12 251 RSCHAPTER 12 ( SB 18/GA18 ) AN ACT relating toinsuranceto insurance requirements for certain vehicle business licensees.

Be it enacted by the General Assembly of the CommonwealthofCommonwealth of Kentucky:

KRS190.033KRS 190.033 is amended toreadto read as follows:

A surety company or insurance carrier authorized to transact business within theCommonwealththe Commonwealth of Kentucky;

] (b) Have a[The] term that is[of the bond or policy shall be] continuous and remains[shall remain] in full force until canceled underproperunder proper notice;

All bonds or policies shall ]Be issued in the name of the holder or applicant for thedealer'sthe dealer's license or wholesaler's license;[.

In circumstances where a customer's or other person's vehicle is out of use because of breakdown, repair, or servicing and a motor vehicle is loaned, with or without consideration, the coverage mandated by this section shall be in excess of, and be deemed secondary to, the collision, bodily injury, and Page 1 of 2 SB001810.100 - 446 - XXXX 2/18/2025 4:47 PM GA UNOFFICIAL COPY 25 RS SB 18/GA property damage liability coverage under a customer's or other person's own coverage for that person's own negligence;

five hundred thousand dollars ($500,000) forbodilyfor bodily injury or deathindeath in any one (1) accident;

and twohundredtwo fiftythousandhundred fifty thousand dollars ($250,000) property damage;[.

] (f) [The bond or policy ]For automotive recycling dealersdealers, ,provide[ provide[shallshall provide] commercial general liability coverage in the amount of two hundred fifty thousand dollars ($250,000) for bodily injury or death of any one (1) person;

five hundred thousand dollars ($500,000) for bodily injury or deathindeath in any one (1) accident;

and[.] (g)[(3)] Provide that the[A] bond or[ insurance] policy shall not be canceled unless fifteen (15) days' notice by the bondsman or insurance carrier has been given in writing to thecommission.the commission.

(b) If the bond or insurance policy is reinstated within thirty (30) days from the date of cancellation, the rights granted by the license shall again be in force and effect;otherwise,effect; the license shall become void.

(4)otherwise, A dealer that has a certificate of authority from the Departmentlicense ofshall Insurancebecome demonstratingvoid. proof of self-insurance is exempt from this section.

Page(4) 2A dealer that has a certificate of 2authority SB001810.100from -the 446Department -of XXXXInsurance 2/18/2025demonstrating 4:47proof PMof GAself- insurance is exempt from this section.

Signed by Governor March 15, 2025.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY