Kentucky Claims Compliance
Key regulatory requirements, correspondence deadlines, and mandated forms for Kentucky (KY).
Quick Reference
Key Deadlines
Requirements
- Mandated Forms
- Catastrophe Rules
- Separate P&C / Life & Health
- Fraud Warning
- Depreciation Notice
- E-Delivery (yes)
Regulatory Authority
Kentucky Department of Insurance (DOI)
Division of Consumer Protection, P.O. Box 517, Frankfort, KY 40602-0517; Toll-Free (KY only): 800-595-6053; Local: 502-564-6034; Website: https://insurance.ky.gov/
Bad Faith: KRS § 304.12-230
Lines of Business
Key Statutes
- Kentucky Unfair Claims Settlement Practices Act (KRS § 304.12-230 et seq.)
- Unfair claims settlement practices for property and casualty insurance (806 KAR 12:095)
Kentucky handles claims correspondence according to specific state regulations. Requirements vary depending on the line of business and specific claim circumstances.
Acknowledgment
Every claim must be acknowledged within 15 business/working days of receipt. The acknowledgment should identify the insurance policy and coverage at issue.
Denial
A written denial must be issued within a reasonable time. The denial must reference the specific policy provisions, conditions, or exclusions relied upon.
Statutory Language
Specific fraud warning and DOI contact info required.
LOB-Specific Requirements
Regulatory requirements for Kentucky, grouped by line of business. Select a chip to filter.
- SOL Notice In Denial Required
- Yes
- Unfair Claims Practices Act RefStatutory
- KRS § 304.12-230
- Prompt Payment Statute RefStatutory
- KRS § 304.12-235
- Proof Of Loss RequirementsStatutory
- Insurers must promptly provide necessary claim forms, instructions, and reasonable assistance within 15 days of notification of a claim (806 KAR 12:095 § 5(4)); forms must be furnished upon written request (KRS § 304.14-270)
- Suit Limitation PeriodStatutory
- Cannot limit the time for commencing actions to a period of less than one (1) year from the time when the cause of action accrues (KRS § 304.14-370); accrues on the date of loss per case law
Kentucky Case Law
Published decisions that shape claim-handling and correspondence practice in Kentucky. Pair these with the statutory deadlines above.
- Case LawClosing LettersWorkers' Comp
While the courts are highly protective of claimants who do not receive a WC-3 letter due to employer error, they will not indefinitely toll the statute of limitations when the administrative system functions properly. In Amy Arndt v. Jefferson County Public Schools (2024), the employer properly notified the DWC of the termination of payments .
- Case LawClosing LettersWorkers' Comp
the employer properly notified the DWC of the termination of payments . Proof was tendered that the DWC, in writing, advised Arndt of her right to prosecute a claim and the two-year statute of limitations via the WC-3 letter .
- Case LawStatus UpdatesWorkers' Comp
The leading case on the scope of affirmative duties in Kentucky insurance law is Associated Ins. Serv., Inc. v. Garcia, 307 S.W.3d 58 (Ky. 2010) . In Garcia, the Kentucky Supreme Court analyzed whether an insurance agent owed an affirmative duty to advise clients or proactively update them regarding their coverage needs.
- Case LawClosing LettersWorkers' Comp
The seminal case establishing this precedent is Billy Baker Painting v. Barry, 179 S.W.3d 860 (Ky. 2005) . In this case, the injured worker received TTD benefits until November 1997. The employer filed an electronic document with the DWC indicating the employee had returned to work. However, the filing was defective—it failed to include the exact date that benefits were terminated .
- Case Law
Conrad v. Shrout
2018
Diminished ValueAutoconfirming that third-party vehicle damage calculations must account for the difference in value before the injury and after repairs, inclusive of stigma damages .
- Case LawStatus UpdatesHomeowners
which involved a claim against a homeowner's policy . Prior to this ruling, damages for a breach of a first-party insurance contract were strictly limited to the amount due under the contract itself, precluding punitive damages .
Show 6 more cases
- Case LawClosing LettersWorkers' Comp
The strictness of the Billy Baker doctrine was further illustrated in Kentucky Container Service, Inc. v. Ashbrook, 265 S.W.3d 793 (Ky. 2008) . In Ashbrook, the employer's TPA transmitted a Form IA-2 to the DWC to report the termination of benefits.
- Case LawStatus UpdatesInland / Ocean Marine
the court held that "[w]ithout something more, there is no affirmative duty on an insurer to inform its insured of UIM coverage" . The burden of examining the policy and understanding its terms lies heavily with the policyholder .
- Case LawDiminished ValueCommercial Auto
where the court concluded that an insurer is required to restore the physical condition of the automobile, but not its inherent market value . Because the insurance policy does not explicitly contract for the coverage of "stigma" or "diminution in value," the carrier is not legally obligated to pay for it .
- Case LawStatus UpdatesWorkers' Comp
Following Zurich, plaintiffs attempted to bypass the common law bar by relying on statutory bad faith via the Kentucky Unfair Claims Settlement Practices Act (UCSPA), utilizing KRS 446.070 (Kentucky's negligence per se statute, which allows recovery for persons injured by the violation of any statute) .
- Case LawBad FaithCommercial Property
struck down the legislature's attempt to cap punitive damages at three times compensatory damages, holding that such caps violate Section 54 of the Kentucky Constitution (the right-to-trial-by-jury provision) . Although there are no statutory caps, awards remain subject to federal Due Process proportionality reviews .
- Case LawStatus UpdatesWorkers' Comp
The seminal case confirming this prohibition is Zurich Ins. Co. v. Mitchell, 712 S.W.2d 340 (Ky. 1986) . In Zurich, a worker who had suffered an angina attack received a permanent total disability award. The insurance carrier temporarily halted the payment of his medical expenses.
Historical court cases are for reference only and may be superseded, distinguished, or abrogated.
Applicable Letter Templates
No letter templates currently found for this jurisdiction.