806 KAR 2:090. Fee for collecting city, county, or urban county government insurance tax.

      RELATES TO: KRS 91A.080

      STATUTORY AUTHORITY: KRS Chapter 13A, 91A.080, 304.2-110

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.2-110 provides that the Executive Director of Insurance may make reasonable rules and administrative regulations necessary for and as an aid to the effectuation of any provision of the Kentucky Insurance Code. KRS 91A.080 requires the Executive Director of Insurance to adopt administrative regulations providing for a reasonable collection fee to compensate insurers and insurance agents for collecting local government premium taxes. This administrative regulation provides for a reasonable collection fee to be charged by an insurance company or its agent for collecting or remitting to a city, county, or urban county government such taxes or fees required by its ordinances for the privilege of engaging in the business of insurance within that city, county, or urban county government.

      Section 1. A reasonable collection fee shall be an amount equal to fifteen (15) percent of the license fee or tax collected and remitted to the city, county, or urban county government or two (2) percent of the premium subject to the license fee or tax, whichever is less. The license fees or taxes to be collected and remitted may be rounded off to the nearest whole dollar. (5 Ky.R. 95; eff. 9-6-78; Am. 9 Ky.R. 383; eff. 10-6-82; 11 Ky.R. 648; eff. 11-13-84; 20 Ky.R. 1696; eff 2-10-94; TAm eff. 8-9-2007.)