806 KAR 2:096. Disclosure of local government premium taxes; unfair discrimination.

      RELATES TO: KRS 91A.080, 304.12-080, 304.12-090

      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 administrative regulations necessary for or as an aid to the effectuation of any provision of the Kentucky Insurance Code. KRS 91A.080 authorizes the Executive Director of Insurance to adopt administrative regulations for the collection and reporting of local government premium taxes. This administrative regulation requires that policies issued for the first time contain a notice that the premium charged includes a local government premium tax.

      Section 1. Definitions. (1) "Executive Director" means the Executive Director of the Kentucky Department of Insurance.

      (2) "Local government premium taxes" means taxes levied pursuant to KRS 91A.080.

      Section 2. (1) As to property, casualty, surety, marine, title, and mortgage guaranty insurance, whenever a local government premium tax is imposed upon insurers for the privilege of engaging in business in a city, county, or urban-county government, the premium charge shall make provision for local government premium taxes.

      (2) As to life and health insurance, whenever a local government premium tax is imposed upon insurers for the privilege in engaging in business in a city, county, or urban-county government, the premium charge may make provision for local government premium taxes.

      (3) The amount of local government premium taxes may, at the option of the insurer, be shown on the policy.

      Section 3. Each policy issued to an insured for the first time shall include a notice that the premium includes a charge for local government premium taxes if local government premium taxes are included in the premium charge. Such notice shall be placed upon the title sheet of the policy by use of a typewriter, stamp, sticker, or any reasonable means approved by the executive director. Such notice may, at the option of the insurer, be placed on renewal certificates and billings issued subsequent to the original policy.

      Section 4. This administrative regulation shall become effective January 1, 1985. (11 Kier. 675; off. 11-13-84; Am. 20 Kier. 1698; off. 2-10-94; TAm eff. 8-9-2007.)