190.033 Insurance or bond required of licensees.
Download pdf
Loading PDF...
<![CDATA[190.033 Insurance or bond required of licensees. A motor vehicle dealer's license, motor vehicle auction dealer's license, or wholesaler's <br>license shall not be issued or renewed unless the applicant or holder of the license shall <br>have on file with the commission an approved indemnifying bond or insurance policy <br>issued by a surety company or insurance carrier authorized to transact business within the <br>Commonwealth of Kentucky. The term of the bond or policy shall be continuous and <br>shall remain in full force until canceled under proper notice. All bonds or policies shall be <br>issued in the name of the holder or applicant for the dealer's license or wholesaler's <br>license. The bond or policy for all dealers except automotive recycling dealers shall <br>provide public liability and property damage coverage for the operation of any vehicle <br>owned or being offered for sale by the dealer or wholesaler when being operated by the <br>owner or seller, his agents, servants, employees, prospective customers, or other persons. <br>In circumstances where a customer's or other person's vehicle is out of use because of <br>breakdown, repair, or servicing and a motor vehicle is loaned, with or without <br>consideration, the coverage mandated by this section shall be in excess of, and be deemed <br>secondary to, the collision, bodily injury, and property damage liability coverage under a <br>customer's or other person's own coverage for that person's own negligence; otherwise the <br>coverage mandated by this section shall be primary. The amount of insurance shall be one <br>hundred thousand dollars ($100,000) for bodily injury or death of any one (1) person; <br>three hundred thousand dollars ($300,000) for bodily injury or death in any one (1) <br>accident; and fifty thousand dollars ($50,000) property damage. The bond or policy for <br>automotive recycling dealers shall provide commercial general liability coverage in the <br>amount of one hundred thousand dollars ($100,000) for bodily injury or death of any one <br>(1) person; three hundred thousand dollars ($300,000) for bodily injury or death in any <br>one (1) accident; and fifty thousand dollars ($50,000) property damage. A bond or <br>insurance policy shall not be canceled unless fifteen (15) days' notice by the bondsman or <br>insurance carrier has been given in writing to the commission. Upon the cancellation of <br>any bond or insurance policy required, the right to engage in the business of a motor <br>vehicle dealer or wholesaler shall immediately abate. If the bond or insurance policy is <br>reinstated within thirty (30) days from the date of cancellation, the rights granted by the <br>license shall again be in force and effect; otherwise, the license shall become void. Effective: July 15, 2002 <br>History: Amended 2002 Ky. Acts ch. 83, sec. 1, effective July 15, 2002. -- Amended 1996 Ky. Acts ch. 111, sec. 2, effective July 15, 1996. -- Amended 1992 Ky. Acts <br>ch. 452, sec. 3, effective July 14, 1992. -- Amended 1988 Ky. Acts ch. 65, sec. 2, <br>effective July 15, 1988. -- Amended 1982 Ky. Acts ch. 373, sec. 4, effective July 15, <br>1982. -- Created 1966 Ky. Acts ch. 175, sec. 13. ]]>