(A) The license fee or tax imposed upon each insurance company with respect to any policy which is not a life insurance policy shall be of the premiums actually collected by the insurance company within each calendar quarter on risks located within the corporate limits of the city on those classes of business which the insurance company is authorized to transact, less all premiums returned to policyholders.
(B) The license fee or tax shall also not apply to premiums:
(1) Received on policies of group health insurance provided for state employees under KRS 18A.225;
(2) Received on policies insuring employers against liability for personal injuries to their employees or the death of their employees caused thereby, under the provisions of KRS Chapter 342;
(3) Received on health insurance policies issued to individuals;
(4) Received on policies issued through Kentucky Access created in Subtitle 17B of KRS Chapter 304;
(5) Received on policies for high deductible health plans as defined in 26 U.S.C. 223(c)(2);
(6) Received on multi-state surplus lines, defined as non-admitted insurance as provided in Dodd-Frank Wall Street Reform and Consumer Protection Act Pub. Law No. 115-203; or
(7) Paid to insurance companies or surplus lines brokers by non-profit self-insurance groups or self-insurance entities whose membership consists of cities, counties, charter county government, urban-county government, consolidated local government, unified local government, school districts, or any other political subdivisions of the Commonwealth.
(C) No license fee or tax imposed under this section shall apply to premiums paid to insurers of municipal bonds, leases, or other debt instruments issued by or on behalf of a city, county, charter county government, urban-county government, consolidated local government, special district, nonprofit corporation, or other political subdivision of the Commonwealth. However, this exemption shall not apply if the bonds, leases, or other debt instruments are issued for profit or on behalf of for-profit or private organizations.
(Ord. 1-1992, passed 3-12-92; Am. Ord. 1-2019, passed 3-21-19)
Statutory reference:
For similar provisions under state law, see KRS 91A.080(3), (10))