Introduced January 23, 2026
SB118
Log in to followAN 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…
Plain-language summary
This bill creates new rules for a type of insurance sold alongside loans, called credit personal property insurance, which is meant to protect the item a borrower puts up as collateral if it is lost or damaged. 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 bars insurers from bundling unnecessary extra coverage or basing premiums…
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Legislative History
Primary Sponsor
Brandon Storm
Senator · Senate District 21
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