--- title: "Key Person Insurance in Kentucky" description: "Learn how Kentucky insurable-interest rules, employee consent, and life guaranty limits affect a business-owned key person policy." canonical: "https://spot.insure/coverage/key-person/kentucky" page-type: "coverage-state-guide" updated-at: "2026-09-28" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/key-person/kentucky) # Key Person Insurance in Kentucky For a life insurer failure, the published guaranty limit for a policy covering a life in Kentucky is $300,000 in death benefits. Ask the broker which insurer will issue the policy and compare its financial strength separately from this limited state safety net. Kentucky’s specific employer provision permits employer insurance for funding a pension or other employee benefit plan and restricts who may receive and use the benefit. If your purpose is standalone key-person continuity, ask the carrier to identify the separate legal basis for the business as owner and beneficiary. Compare your ownership and insured’s role with Ky. Rev. Stat. § 304.14-040(1)–(4).[^4][^1] **Coverage:** [Key person](/coverage/key-person) · [Kentucky](/coverage/states/kentucky) ## What Is Key Person? Key person insurance pays the business, not the person’s family, when a founder, partner or employee it relies on dies. Disability, overhead expense and buyout funding are separate products to discuss on their own. [Read the national Key person guide](/coverage/key-person). ## What to Watch for in Kentucky ### Document the Business Interest Kentucky’s specific employer provision permits employer insurance for funding a pension or other employee benefit plan and restricts who may receive and use the benefit. If your purpose is standalone key-person continuity, ask the carrier to identify the separate legal basis for the business as owner and beneficiary.[^1] ### Complete Written Notice and Consent Kentucky recognizes business partners’ insurable interest for a buy-sell contract only for that contract’s purpose. Keep buyout funding separate from a key-person continuity policy and match each beneficiary designation to its purpose.[^2][^3] ### Check the State Guaranty Backstop A Kentucky resident’s life death-benefit backstop is listed at $300,000. The limit does not establish the issuing insurer’s strength; verify the carrier and policy owner. Compare it with the benefit you intend the business to collect. For issuance, also check Ky. Rev. Stat. § 304.14-040(1)–(4).[^4][^5][^1] ## 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.[^6][^7][^8] - [Regulator website](https://insurance.ky.gov/ppc/new_default.aspx) - [License lookup](https://insurance.ky.gov/ppc/Agent/Default.aspx) - [File a complaint](https://insurance.ky.gov/ppc/forms/complaints_home.aspx) - Phone: 800-595-6053 (option 1, Kentucky only) ### 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.[^9][^12][^10][^11][^13] ## Providers With Documented State Licenses These providers publish a national listing for Key person; 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 that the product is available in Kentucky; [check the regulator’s license lookup](https://insurance.ky.gov/ppc/Agent/Default.aspx) and confirm state availability for your business when requesting a quote. - [Vouch](/insurance-providers/vouch) — **Entity:** Vouch Specialty Insurance Services, LLC; **role:** Insurance producer, Surplus-lines broker; **checked:** 2026-09-28. **Scope:** Vouch’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.[^20] ## Questions to Ask Before You Buy in Kentucky 1. What Kentucky law supports our business’s insurable interest in this person, and what should we retain to prove the role? 2. What written notice and consent must the insured receive before this policy is issued, and can coverage continue after employment ends? 3. How would Kentucky’s guaranty-association limit apply to this policy and our other business-owned life policies? ## Key Person in Kentucky: FAQ ### How much of a key person life policy is protected if an insurer fails in Kentucky? NOLHGA’s Kentucky entry shows $300,000 for life death benefits. A separate owner aggregate may matter when the same company holds several nongroup policies. NOLHGA reports an aggregate $5 million limit for one owner’s multiple nongroup life policies.[^4][^5] ### Does my business need an employee’s consent for key person insurance in Kentucky? Yes. Federal rules require written notice and consent before issue for the employer-owned life tax exception. Kentucky recognizes business partners’ insurable interest for a buy-sell contract only for that contract’s purpose. Keep buyout funding separate from a key-person continuity policy and match each beneficiary designation to its purpose. Keep the signed record with the final policy. For state-law details, check Ky. Rev. Stat. § 304.14-040(1)–(4).[^2][^3][^1] ## Key Person in Other States - [Alabama](/coverage/key-person/alabama) - [Alaska](/coverage/key-person/alaska) - [Arizona](/coverage/key-person/arizona) - [Arkansas](/coverage/key-person/arkansas) - [California](/coverage/key-person/california) - [Colorado](/coverage/key-person/colorado) - [Connecticut](/coverage/key-person/connecticut) - [Delaware](/coverage/key-person/delaware) - [District of Columbia](/coverage/key-person/district-of-columbia) - [Florida](/coverage/key-person/florida) - [Georgia](/coverage/key-person/georgia) - [Hawaii](/coverage/key-person/hawaii) - [Idaho](/coverage/key-person/idaho) - [Illinois](/coverage/key-person/illinois) - [Indiana](/coverage/key-person/indiana) - [Iowa](/coverage/key-person/iowa) - [Kansas](/coverage/key-person/kansas) - [Louisiana](/coverage/key-person/louisiana) - [Maine](/coverage/key-person/maine) - [Maryland](/coverage/key-person/maryland) - [Massachusetts](/coverage/key-person/massachusetts) - [Michigan](/coverage/key-person/michigan) - [Minnesota](/coverage/key-person/minnesota) - [Mississippi](/coverage/key-person/mississippi) - [Missouri](/coverage/key-person/missouri) - [Montana](/coverage/key-person/montana) - [Nebraska](/coverage/key-person/nebraska) - [Nevada](/coverage/key-person/nevada) - [New Hampshire](/coverage/key-person/new-hampshire) - [New Jersey](/coverage/key-person/new-jersey) - [New Mexico](/coverage/key-person/new-mexico) - [New York](/coverage/key-person/new-york) - [North Carolina](/coverage/key-person/north-carolina) - [North Dakota](/coverage/key-person/north-dakota) - [Ohio](/coverage/key-person/ohio) - [Oklahoma](/coverage/key-person/oklahoma) - [Oregon](/coverage/key-person/oregon) - [Pennsylvania](/coverage/key-person/pennsylvania) - [Rhode Island](/coverage/key-person/rhode-island) - [South Carolina](/coverage/key-person/south-carolina) - [South Dakota](/coverage/key-person/south-dakota) - [Tennessee](/coverage/key-person/tennessee) - [Texas](/coverage/key-person/texas) - [Utah](/coverage/key-person/utah) - [Vermont](/coverage/key-person/vermont) - [Virginia](/coverage/key-person/virginia) - [Washington](/coverage/key-person/washington) - [West Virginia](/coverage/key-person/west-virginia) - [Wisconsin](/coverage/key-person/wisconsin) - [Wyoming](/coverage/key-person/wyoming) [Other Coverage in Kentucky](/coverage/states/kentucky) ## Sources [^1]: [2025 Kentucky Revised Statutes § 304.14-040 — Insurable Interest](https://law.justia.com/codes/kentucky/chapter-304/subtitle-304-14/section-304-14-040/) — State statute (Justia U.S. Codes and Statutes); Ky. Rev. Stat. § 304.14-040(1)–(4). Accessed 2026-09-28. [^2]: [26 U.S.C. § 101(j) — Certain employer-owned life insurance contracts](https://uscode.house.gov/view.xhtml?req=(title:26%20section:101%20edition:prelim)) — Office of the Law Revision Counsel, U.S. House of Representatives; 26 U.S.C. § 101(j)(2), (4). Accessed 2026-09-28. [^3]: [Internal Revenue Bulletin 2009-24 — Employer-Owned Life Insurance Contracts](https://www.irs.gov/irb/2009-24_IRB) — Internal Revenue Service; Notice 2009-48, Q&A 6–7; written notice and consent. Accessed 2026-09-28. [^4]: [How You’re Protected: Coverage Levels by State](https://nolhga.com/policyholders/how-youre-protected-2/) — National Organization of Life & Health Insurance Guaranty Associations; Coverage Levels by State; life insurance death benefits; report current as of May 2025. Accessed 2026-09-28. [^5]: [Life and Health Insurance Guaranty Association Model Act](https://content.naic.org/sites/default/files/publication-model-2025-fall.pdf) — National Association of Insurance Commissioners; Section 8(A)(2)(d), owner aggregate benefit cap. Accessed 2026-09-28. [^6]: [Kentucky Department of Insurance](https://insurance.ky.gov/ppc/new_default.aspx) — Kentucky Department of Insurance; Homepage and consumer telephone. Accessed 2026-09-28. [^7]: [Insurance License Lookup](https://insurance.ky.gov/ppc/Agent/Default.aspx) — Kentucky Department of Insurance; State-designated producer/company search. Accessed 2026-09-28. [^8]: [File an Insurance Complaint](https://insurance.ky.gov/ppc/forms/complaints_home.aspx) — 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. [^9]: [KRS 304.10-180](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48240) — 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. [^10]: [Local Government Premium Taxes](https://insurance.ky.gov/ppc/new_default.aspx?divid=13) — Kentucky Department of Insurance; Current local tax schedules. Accessed 2026-09-28. [^11]: [KRS 304.10-090](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16989) — 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. [^12]: [KRS 136.392](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50265) — 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. [^13]: [Surplus Lines](https://insurance.ky.gov/ppc/new_default.aspx?divid=24) — 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. [^14]: [Licenses](https://www.at-bay.com/licenses/) — At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21. [^15]: [Licenses and Carriers](https://www.coalitioninc.com/legal/licenses) — 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. [^16]: [Insurance Producer Licenses](https://www.corgi.insure/broker-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. [^17]: [About Hiscox US Insurance](https://www.hiscox.com/about-hiscox-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. [^18]: [Licenses](https://www.nextinsurance.com/insurance-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. [^19]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — 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. [^20]: [Licenses](https://www.vouch.us/legal/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 2026-09-28. This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). To suggest a correction, [contact Spot](/contact) with a supporting source. ## Agent and Developer Resources - [Markdown page](https://spot.insure/coverage/key-person/kentucky.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://spot.insure/llms.txt)