Kentucky Revised Statutes · § 304.20-105 — Definitions for section -- Assignment of duties, rights, or benefits -- Prohibition

(1) As used in this section:

(a) "Insured" means a person that is entitled, or may be entitled, to receive first-party benefits or payments under an insurance policy;

(b) "Person" includes:

1. A natural person;

2. Any type or form of corporation, company, partnership, proprietorship, association, or other legal entity; and

3. A government, governmental subdivision or agency, or other body politic; and

(c) "Rights or benefits under the policy" includes the insured's right to receive any and all post-loss benefits or payments available or payable under the policy, including but not limited to claim payments.

(2) An insured under a property, casualty, or property and casualty insurance policy shall not, either prior to or after a claimed or covered loss, assign or otherwise transfer, in whole or in part, to any other person the insured's:

(a) Duties under the policy; or

(b) Rights or benefits under the policy.

(3) Any contract entered in violation of this section shall be void and unenforceable.

(4) Nothing in this section shall be construed to prohibit an insured from:

(a) Directing the payment of benefits under KRS 304.39-241;

(b) Authorizing or directing payment to, or paying, a person for services, materials, or any other thing which may be, or is, covered under an insurance policy; or

(c) Assigning rights to seek damages related to a personal injury or tort case, arising from a settlement, verdict, or resulting judgment against the insured that is in excess of the insured's liability insurance coverage, subject to defenses available under Kentucky law.