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Kentucky Credit Union Fidelity Bond Limits

Kentucky’s credit-union rule sets minimum blanket fidelity limits by asset band, from assets equal to the bond for the smallest institutions up to $5 million above $295 million in assets. The board must review adequacy at least annually; this schedule is specific to Kentucky credit unions, not a general business requirement; federally insured state-chartered credit unions also face NCUA requirements. 1,2

What Is Fidelity Bonds?

Fidelity coverage can reimburse certain losses when employees steal money or property they handle. If employees manage company funds, customer property or benefit-plan assets, identify each owner and compare the required protection for each interest. Read the national Fidelity bonds guide.

Kentucky Requirements

RequirementDetails
Asset-based minimum schedule808 KAR 3:050 §3(1) sets minimum blanket fidelity amounts by credit-union assets, with a $5 million minimum for institutions above $295 million in assets. 1
Annual board reviewEvery credit union’s board must review blanket fidelity coverage at least once each year to assess adequacy. 1

What to Watch for in Kentucky

  • Recalculate the minimum using the current asset band

    The schedule rises in asset brackets and uses fractions of a bracket in several ranges. Reconcile the institution’s current assets and statutory calculation at renewal; a limit copied from last year may no longer meet the current minimum. 1

  • Keep the annual review separate from minimum compliance

    Meeting the rule’s minimum is not the same as showing the limit remains adequate for the institution’s actual exposure. The regulation separately requires the board to review coverage at least annually, so record both the minimum calculation and the board’s adequacy decision. 1

  • Check that the schedule applies to this charter

    The regulation implements KRS 286.6-225(2) for credit unions. Do not apply its asset schedule to non-credit-union employers; confirm charter and federal-insurance status because federally insured state-chartered credit unions also follow 12 CFR Part 713. 1,2,3

Who Regulates Insurance in Kentucky

Kentucky Department of Insurance

The Kentucky Department of Insurance licenses agents and insurers, monitors the insurance market, and accepts complaints about insurance companies and agents. You can use its state lookup or complaint service to check a license or raise an insurance issue. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 3% on Kentucky-home-state premiums and other premium consideration; separate 1.8% surcharge on eligible risks located in Kentucky, subject to statutory exceptions; applicable local-government premium tax may also apply When Kentucky is the insured's home state, the state tax is 3% of premium and other consideration treated as premium; local-government premium taxes may also apply. A separate 1.8% surcharge generally applies to Kentucky risks, but state law exempts multistate nonadmitted risks and specified government and nonprofit premiums. The broker must make a diligent effort to place coverage with an admitted carrier before using surplus lines. 7,10,8,9,11

Providers With Documented State Licenses

These providers publish a national listing for Fidelity bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Kentucky. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 17
  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 18

Questions to Ask Before You Buy in Kentucky

  1. What are the credit union’s current assets and which regulatory bracket applies?
  2. Does the blanket bond meet the calculated minimum and include relevant officers, employees and other handlers?
  3. When did the board last review adequacy, and what exposure changes should it consider?

Fidelity Bonds in Kentucky: FAQ

Does Kentucky require every business to follow this bond schedule? 1,2,3

No. 808 KAR 3:050 §3 implements a minimum blanket bond requirement for credit unions under KRS 286.6-225; it is not a general employer mandate. Federally insured state-chartered credit unions also follow 12 CFR Part 713. 1,2,3

Is the minimum unlimited for the largest credit unions? 1

The Kentucky regulation lists $5 million for institutions over $295 million in assets, but that state schedule alone is not the limit for every credit union. Federally insured state-chartered credit unions must also check 12 CFR Part 713, including its separate federal asset-based minimum and annual-review rules. 1

Fidelity Bonds in Other States

Other Coverage in Kentucky

Sources

  1. 808 KAR 3:050 §3, Fidelity Bond. Kentucky Legislative Research Commission; Current regulation page, §3(1)–(2); read Sept. 28, 2026. Accessed 2026-09-28.
  2. KRS 286.6-225, Specific duties of board. Kentucky Legislative Research Commission; Subsection (2) requires a blanket fidelity bond protecting the credit union against enumerated losses by specified directors, officers, employees, committee members and agents; official current statute page. Accessed 2026-09-28.
  3. 12 CFR Part 713, Fidelity Bond and Insurance Coverage for Federally Insured Credit Unions. National Credit Union Administration / Office of the Federal Register; §§713.1–713.2: federal overlay applies to federally insured state-chartered credit unions and requires annual review; current through Sept. 24, 2026. Accessed 2026-09-28.
  4. Kentucky Department of Insurance. Kentucky Department of Insurance; Homepage and consumer telephone. Accessed 2026-09-28.
  5. Insurance License Lookup. Kentucky Department of Insurance; State-designated producer/company search. Accessed 2026-09-28.
  6. File an Insurance Complaint. Kentucky Department of Insurance; Official DOI consumer complaint page accepts complaints involving general liability and disputes with insurers, agents or adjusters. Accessed 2026-09-28.
  7. KRS 304.10-180. Kentucky General Assembly; KRS 304.10-180(1): Kentucky-home-state; 3% applies to premiums, assessments, fees, charges or other premium consideration; local premium tax is separate. Accessed 2026-09-28.
  8. Local Government Premium Taxes. Kentucky Department of Insurance; Current local tax schedules. Accessed 2026-09-28.
  9. KRS 304.10-090. Kentucky General Assembly; KRS 304.10-090 requires policy notice that nonadmitted insurer is not a Kentucky Insurance Guaranty Association member and its benefits are unavailable upon insolvency. Accessed 2026-09-28.
  10. KRS 136.392. Kentucky General Assembly; KRS 136.392(1),(5)-(6): $1.80 per $100 on premium/other charges for Kentucky risks; named government/nonprofit exceptions; multistate nonadmitted risks exempt. Accessed 2026-09-28.
  11. Surplus Lines. Kentucky Department of Insurance; Full page states licensed surplus-lines brokers must make a diligent effort to place with an admitted carrier before exporting coverage. Accessed 2026-09-28.
  12. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  13. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  14. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  15. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  16. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  17. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  18. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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