# 806 KAR 12:040: 806 KAR 12:040. Insurance in credit transactions

> Kentucky · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R040

## Section

- **Citation:** 806 KAR 12:040
- **Heading:** 806 KAR 12:040. Insurance in credit transactions
- **Jurisdiction:** Kentucky
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Kentucky Administrative Regulations / Title 806 (Public Protection Cabinet - Department of Insurance) / Chapter 012 / 806 KAR 12:040

## Text

Section 1. In a finance or loan transaction wherein the vendee refuses or for any reason fails to provide reasonable insurance protection against loss from physical damage, an insurer may, at the request of the dealer, finance factor, or lender, provide such insurance protection. Section 2. Where the dealer, finance factor, or lender requests and secures such protection, no part of the cost thereof shall be charged to the vendee unless losses payable thereunder shall be for the benefit of the vendee as well as the dealer, finance factor, or lender. In the event a loss is payable under such policy where any part of the cost of such protection is charged to the vendee, it shall be applied toward restoration of the damaged subject of the transaction or toward reduction of the balance of the debt, if any remains, arising out of the transaction. Section 3. When insuring motor vehicle or aircraft, the title page of a policy providing single interest protection for the sole benefit of the dealer, finance factor, or lender must have clearly stamped or printed in not less than fourteen (14) point type the words: "This policy does not provide protection: (1) To the buyer of the property insured hereunder; (2) Against legal liability to persons or property of third parties."

## Nearby sections

- [806 KAR 12:010 806 KAR 12:010. Advertising of accident and sickness benefits](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R010.md)
- [806 KAR 12:020 806 KAR 12:020. Fair disclosure to consumers](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R020.md)
- [806 KAR 12:040 806 KAR 12:040. Insurance in credit transactions](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R040.md)
- [806 KAR 12:060 806 KAR 12:060. Health insurance replacement](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R060.md)
- [806 KAR 12:070 806 KAR 12:070. Life insurance application requirements](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R070.md)
- [806 KAR 12:080 806 KAR 12:080. Replacement of life insurance and annuity contracts](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R080.md)
- [806 KAR 12:092 806 KAR 12:092. Unfair life and health insurance claims settlement practices](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R092.md)
- [806 KAR 12:095 806 KAR 12:095. Unfair claims settlement practices for property and casualty insurance](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R095.md)
- [806 KAR 12:110 806 KAR 12:110. Merged gender mortality tables for life insurance](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R110.md)
- [806 KAR 12:120 806 KAR 12:120. Suitability in annuity transactions](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R120.md)
- [806 KAR 12:131 806 KAR 12:131. Requirements for disclosure for life insurance and annuity contracts used to fund preneed funeral contracts or prearrangements](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R131.md)
- [806 KAR 12:140 806 KAR 12:140. Life insurance illustrations](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R140.md)
- [806 KAR 12:150 806 KAR 12:150. Annuity disclosures](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R150.md)
- [806 KAR 12:160 806 KAR 12:160. Standards for accelerated death benefits](https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R160.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_KY_KAR_T806_C012_R040. Check the current official text before relying on it. Not legal advice.