Kentucky Revised Statutes Title XXV. Business and Financial Institutions § 304.10-040.Conditions for export; exceptions relating to diligent effort

(a) The insurance shall be procured through a licensed surplus lines broker;

(b) After a diligent effort, a licensed agent with property and casualty lines of authority, or with health and life lines of authority if procuring disability insurance, has been unable to procure the full amount of insurance required from an insurer that is authorized to transact, and that actually writes, that kind and class of insurance in this state. If the licensed agent is able to procure an amount of insurance less than the full amount, only the excess amount needed to procure the full amount shall be exported;

(c) The insurance shall not be exported for the sole purpose of securing either:

(a) The broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and

(b) The exempt commercial purchaser has subsequently requested in writing that the broker procure or place insurance from a nonadmitted insurer.