Request By:
Honorable Harold B. McGuffey
Commissioner
Department of Insurance
151 Elkhorn Court
Frankfort, Kentucky 40601
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Joseph R. Johnson, Assistant Attorney General
This is in response to your letter dated September 26, 1979 in which you have asked for an opinion of this office whether the Kentucky Mortgage Guarantee Insurance Corporation to be established and funded by the Kentucky Development Finance Authority must be approved by and registered with the Department of Insurance.
KRS 154.555 states in part as follows:
The authority may cause to be established, by any number of natural persons not in excess of fifteen (15), a Kentucky nonprofit corporation which shall have as its purpose the insurance of mortgage loans entered into by and between lenders and persons or corporations located in Kentucky and offering gainful employment to the inhabitants of the Commonwealth. The mortgage insurance corporation shall not be deemed to have been established for the purposes of this chapter unless and until its articles of incorporation shall have been approved by the authority, and if so approved, no approval by the department of insurance shall be required. . . . (Emphasis added.)
Based on the above statutory provision, it is the opinion of this office that the legislature did not intend that the Kentucky Mortgage Guarantee Insurance Corporation come within the jurisdiction of the Department of Insurance. The articles of incorporation having been approved by the Authority, no further approval by the Department of Insurance is required.