Kentucky Revised Statutes Title XXV. Business and Financial Institutions § 304.15-716.Violation due to time of contract; conditions; procedure; satisfaction of requirements

(a) The policy was issued upon the owner's exercise of conversion rights arising out of a group or individual policy, if the total of the time covered under the conversion policy plus the time covered under the prior policy is at least twenty-four (24) months. The time covered under a group policy shall be calculated without regard to a change in insurance carriers, if the coverage has been continuous and under the same group sponsorship; or

(b) The owner submits independent evidence to the life settlement provider that one (1) or more of the following conditions has been met within the two (2) year period:

1. The owner or insured is terminally or chronically ill;

2. The owner or insured disposes of his ownership interests in a closely held corporation, pursuant to the terms of a buyout or other similar agreement in effect at the time the insurance policy was initially issued;

3. The owner's spouse dies;

4. The owner divorces his or her spouse;

5. The owner retires from full-time employment;

6. The owner becomes physically or mentally disabled and a physician determines that the disability prevents the owner from maintaining full-time employment; or

7. A final order, judgment, or decree is entered by a court of competent jurisdiction, on the application of the creditor of the owner, adjudicating the owner bankrupt or insolvent, or approving a petition seeking reorganization of the owner or appointing a receiver, trustee, or liquidator to all or a substantial part of the owner's assets.