(1) Pursuant to KRS 91A.080(2) and 806 KAR 2:090, et seq., the urban county government imposes a license fee of five (5) percent on insurance companies with respect to life insurance policies, based upon the first year's premiums, and applied to the amount of the premiums actually collected within each calendar quarter upon the lives of persons residing within the corporate limits of the urban county government.
(2) Pursuant to KRS 91A.080(3) and 806 KAR 2:090, et seq., the urban county government imposes a license fee of five (5) percent upon any insurance company with respect to any policy which is not a life insurance policy based upon the premiums actually collected by the company within each calendar quarter on risks located within the corporate limits of the urban county government on those classes of business which the company is authorized to transact, less all premiums returned to policyholders. In determining the amount of license fee or tax to be collected and to be paid to the urban county government, the insurance company shall use the tax rate effective on the first day of the policy term. When an insurance company collects a premium as a result of a change in the policy during the policy term, the tax rate used shall be the rate in effect on the effective date of the policy change. With respect to premiums returned to policyholders, the license fee or tax shall be returned by the insurance company to the policyholder pro rata on the unexpired amount of the premium at the same rate at which it was collected and shall be taken as a credit by the insurance company on its next quarterly report to the urban county government. Such license fee imposed upon premium receipts shall not include premiums received for insuring employers against liability for personal injuries to their employees, or the death of their employees caused thereby, under the provisions of the Workers' Compensation Act.
(3) To facilitate computation, collection and remittance of the fee provided in this section and the collection fee provided in KRS 91A.080(4), the fees set out in subsections (1) and (2) of this section, together with the collection fee in KRS 91A.080(4), may be rounded off to the nearest dollar amount.
(4) Pursuant to KRS 91A.080(8), the license fees provided for by subsections (1) and (2) of this section shall be due thirty (30) days after the end of each calendar quarter. Annually, by March 31, each insurer shall furnish the urban county government with a breakdown of all collections in the preceding calendar year for the following categories of insurance:
(a) Casualty;
(b) Automobile;
(c) Inland marine;
(d) Fire and allied perils;
(e) Health; and
(f) Life.
(5) Pursuant to KRS 91A.080(9), any license fee not paid on or before the due date shall bear interest at the tax interest rate as defined in KRS 131.010(6) from the date due until paid. Such interest payable to the urban county government is separate of penalties provided for in KRS 91A.080(6).
(6) No license fee imposed under this section shall apply to premiums received on policies of group health insurance provided for state employees under KRS 18A.225(2) and 18A.228.
(7) No license fee imposed under this section shall apply to premiums received on policies issued to public service companies which pay ad valorem taxes.
(8) No license fee imposed under this section shall apply to premiums received on livestock insurance of any type.
(Ord. No. 89-70, § 1, 5-7-70; Ord. No. 65-71, § 1, 4-22-71; Ord. No. 74-71, § 1, 5-6-71; Ord. No. 124-74, § 1, 7-18-74; Ord. No. 98-84, § 3, 6-28-84; Ord. No. 67-94, § 1, 5-5-94; Ord. No. 106-94, § 1, 6-16-94; Ord. No. 223-2007, § 1, 10-4-07)
State law references(s)—Insurance code, KRS ch. 304.