(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 based upon 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. In determining the amount of license fee or tax to be collected and to be paid to the city, 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 city.
(B) No license fee or tax imposed under this chapter shall 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 provision 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 Title V, Subtitle B, the Non-Admitted and Reinsurance Reform Act of 2010, of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203;
(7) Paid to insurance companies or surplus lines brokers by nonprofit self-insurance groups or self-insurance entities whose membership consists of school districts; or
(8) Paid to insurance companies or surplus lines brokers by nonprofit self-insurance groups or self-insurance entities whose membership consists of cities, counties, charter county governments, urban-county governments, consolidated local governments, unified local governments, school districts, or any other political subdivisions of the Commonwealth.
(C) No license fee or tax imposed under this chapter 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. passed 3-11-2019)
Statutory Reference:
See also KRS 91A.080(3), 91A.080(10) and 91A.080(13)