RELATES TO: KRS 304.2-210-304.2-230,
304.13-320,
304.24-290
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
304.2-110 provides that the Commissioner of
Insurance may make reasonable administrative regulations necessary for or as an
aid to the effectuation of any provision of the Kentucky Insurance Code. This
administrative regulation requires the preservation of records of insurers,
holding companies, and advisory organizations for a minimum period of five (5)
years and in a specified form.
Section
1. In order to enable the commissioner to perform the duties and
execute the powers placed upon him by
KRS
304.2-210,
304.2-220,
304.2-230,
304.13-320,
and 302.24-290 and to enforce compliance therewith, the accounts, records,
documents, experience, statistics, rating plans, rating systems, underwriting
rules, policy or bond forms, surveys, and inspections mentioned therein shall
be preserved in their entirety and kept available and open to the
commissioner's inspection, unless specifically excused by the commissioner, for
a period of not less than five (5) years following creation of the material or
the completion of the purpose for which it was created, whichever shall occur
last.
Section 2. Nothing in this
administrative regulation is intended to encourage the destruction of or
failure to preserve material at any time, particularly in view of the fact that
statutory periods of time in which causes of action accrue or may be brought
often exceed a five (5) year period.
Section
3. With reference to domestic insurers, the term "principal
records" as used in
KRS
304.24-290 shall include the material
referred to in Section 1 of this administrative regulation, and the material
shall not be removed from this state except in compliance with this
administrative regulation.
Section
4. Records required by this administrative regulation may be
maintained in their original forms, on microfilm, on data processing tapes or
cards, or by means of other forms of electronic storage. All records maintained
by electronic storage shall be capable of duplication to legible hard
copy.
