AN ACT relating to credit personal property insurance.

Create new sections of Subtitle 19 of KRS Chapter 304 to establish regulatory requirements relating to credit personal property insurance; define terms; establish exemptions from the regulatory requirements; establish limits on the amount and term of credit personal property insurance sold in conjunction with a closed-end credit transaction; require credit personal property insurance to cover a substantial risk of loss of, or damage to, the collateral pledged or secured in the credit transaction; prohibit an…

Introduced: January 23, 2026

Last action: March 12, 2026

To Banking & Insurance (H)

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This bill sets up new rules for a type of insurance that protects personal property used as collateral when someone takes out a loan. It sets limits on coverage amounts and loan terms, requires lenders to give borrowers clear written information about costs and coverage within 30 days of the loan, and establishes standards for how claims are paid and how refunds are handled if the insurance is canceled early. Who it may affect: Kentuckians who take out loans secured by personal property, as well as insurers and lenders operating in Kentucky.

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