806 KAR 10:030. Reporting requirement for broker's statement and surplus lines tax.
RELATES TO: KRS 304.10-170, 304.10-180
STATUTORY AUTHORITY: KRS 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 or as an aid to the effectuation of any provision of the Kentucky Insurance Code. This administrative regulation provides for the reporting procedures to be used by surplus lines brokers for the reporting and payment of surplus lines tax in accordance with KRS 304.10-170 and 304.10-180.
Section 1. Definitions. "Premium charged" means the premium billed and collected during the preceding calendar quarter.
Section 2. Annual Reporting and Payment of Surplus Lines Premium Taxes for Insurance Transactions Effective Prior to July 1, 2002. (1) Transactions effective between the period January 1, 2002 and July 1, 2002, shall be reported on the Surplus Lines Broker Annual Statement Kentucky S.L.A.S. Form 1 & 1A (Rev. 4/01).
(2) Surplus lines premium tax, computed at the rate of three (3) percent on the premiums, assessments, fees, charges, or other consideration deemed part of the premium as shown on the Surplus Lines Broker Annual Statement, shall be payable to the Kentucky State Treasurer, and shall be remitted to the Kentucky Office of Insurance.
(3) The Surplus Lines Broker Annual Statement shall be completed and submitted with the tax by all licensed brokers before April 1, 2003, even if no insurance transactions were made during this period.
Section 3. Quarterly Reporting and Payment of Surplus Lines Premium Taxes for Insurance Transactions Effective On and After July 1, 2002. (1) Transactions effective on and after July 1, 2002, shall be reported on the Surplus Lines Broker Quarterly Report (KY S.L.Q.R. Form 2 & 2A (Ed. 4/02)).
(2) Surplus lines premium tax computed at the rate of three (3) percent on the premiums, assessments, fees, charges, or other consideration deemed part of the premium as shown on the Surplus Lines Broker Quarterly Report, shall be payable to the Kentucky State Treasurer, and shall be remitted to the Kentucky Office of Insurance, along with the Surplus Lines Broker Quarterly Report, within thirty (30) days of the end of each calendar quarter for all surplus lines transactions during the preceding calendar quarter.
(3) The initial Surplus Lines Broker Quarterly Report accompanied by the surplus lines tax payment for transactions effective during the period July 1, 2002 through September 30, 2002, shall be filed with the executive director within thirty (30) days of the end of the quarter, or October 30, 2002.
(4) The Surplus Lines Broker Quarterly Report shall be completed in its entirety and filed with the executive director, accompanied by payment of the surplus lines tax due within thirty (30) days of the end of each calendar quarter for all surplus lines transactions during the preceding calendar quarter.
(5) The Surplus Lines Broker Quarterly Report shall be completed and submitted quarterly by all licensed brokers even if no insurance transactions were completed during the period.
Section 4. Incorporation by Reference. (1) The following material is incorporated by reference:
(a) Form Kentucky S.L.A.S. Ins. 1 (Rev. 04/02), "Surplus Lines Broker Annual Statement Filing Procedures, April, 2002 edition", Office of Insurance;
(b) Form Kentucky S.L.A.S. Form 1 (Rev. 04/02), "Surplus Lines Broker Annual Statement, April 2002 edition", Office of Insurance;
(c) Form Kentucky S.L.A.S. Form 1A (Rev. 04/02), "Surplus Lines Broker Annual Statement, continuation page April 2002 edition", Office of Insurance;
(d) Form Kentucky S.L.Q.R. Ins. 2 (Ed. 04/02), "Surplus Lines Broker Quarterly Report Filing Procedures, April 2002 edition", Office of Insurance;
(e) Form Kentucky S.L.Q.R. Form 2 (Ed. 4/02), "Surplus Lines Broker Quarterly Report, April 2002 edition", Office of Insurance; and
(f) Form Kentucky S.L.Q.R. Form 2A (Ed. 4/02), "Surplus Lines Broker Quarterly Report, April 2002 edition", Office of Insurance.
(2) This material may be inspected, copied or obtained, subject to applicable copyright law, at the Kentucky Office of Insurance, 215 West Main Street, Frankfort, Kentucky 40602, Monday through Friday, 8 a.m. to 4:30 p.m.
(3) This material may also be viewed or obtained on the office’s Internet Web site, http://doi.ppr.ky.gov/kentucky/ (29 Ky.R. 1440; Am. 1796; eff. 1-16-2003; TAm eff. 8-9-2007.)