The Kentucky Department of Insurance published a bulletin outlining the changes to insurance legislation enacted by the 2025 Kentucky General Assembly.
House Bill 19 lists businesses that may operate an unmanned aircraft/drone during the course of their business. Insurance companies are included; they may use drones to underwrite risks or investigate damage. The Act is effective June 27, 2025.
House Bill 233 amends the Consumer Protection Act to allow anyone who has entered into a real estate contract with a contractor to cancel the contract within 5 days of being notified that the loss is not covered under an insurance policy. The Act is effective June 27, 2025.
House Bill 390 requires the Transportation Cabinet of the Department of Vehicle Registration to create an accessible online insurance verification system. The system should be able to verify whether motor vehicles carry the security required by KRS, and insurers that provide that coverage for personal motor vehicles must comply with the requirements.
The Act also creates a technical advisory committee to oversee the implementation of the system and to make recommendations to the Department of Vehicle Registration. The Act is effective June 27, 2025.
House Bill 493 requires businesses that provide towing and storage services to acquire a certificate from the Department of Vehicle Registration. They should have a rate sheet on file with the Department, and the rates must be reasonable. If they charge over the filed rate, it will be deemed excessive and should be refunded to the consumer. The Act is effective June 27, 2025.
Senate Bill 18 makes it so that a motor vehicle dealer, recreational vehicle dealer, motor vehicle auction dealer, or wholesaler can acquire an indemnifying bond or insurance policy from a nonadmitted insurer, so long as the requirements of KRS Chapter 304 Subtitle 10 are met. The Act is effective June 27, 2025.
Senate Bill 24 amends KRS to state that any statement that misrepresents the scope of damages, including repair costs and other expenses, associated with a P&C insurance claim constitutes a fraudulent insurance act. This Act is effective June 27, 2025.
Senate Bill 136 requires the Department of Insurance to promulgate an emergency and ordinary regulation that identifies a nationally accepted used car valuation guide or tool to be used by P&C insurers in determining the retail value of a wrecked or damaged vehicle. This Act was effective on March 27, 2025. Prior to the act, an insurer could use any nationally accepted used car valuation guide.
The bulletin can be found here.