KY SB118

Creates new regulatory framework for credit personal property insurance in Kentucky (KRS Chapter 304, Subtitle 19), covering insurance on personal property pledged as collateral for consumer credit transactions such as auto loans

Prohibits insurers from issuing coverage exceeding the gross debt amount or extending beyond the scheduled term of the underlying credit transaction, and requires coverage to address substantial risk of loss or damage to collateral

Requires creditors to deliver policy disclosure documents within 30 days of the loan date and mandates filing of all policies, certificates, applications, and premium rate schedules with the Insurance Commissioner

Establishes premium refund requirements upon early cancellation (minimum $5 threshold) and claims payment procedures, while prohibiting creditors from serving as claim adjusters for insurers

Exempts business/commercial credit transactions, real estate-secured loans, title insurance, blanket vendor single interest insurance, and transactions where no identifiable charge is made to the debtor