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806 KAR 10:030. Reporting requirement for broker's statement and surplus lines tax


Published: 2015

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      806 KAR 10:030. Reporting requirement for broker's

statement and surplus lines tax.

 

      RELATES TO: KRS 304.1-070,

304.10-030, 304.10-170, 304.10-180, 304.99-085

      STATUTORY

AUTHORITY: KRS 304.2-110, 304.10-170, 304.10-210, EO 2009-535

      NECESSITY,

FUNCTION, AND CONFORMITY: EO 2009-535, signed June 12, 2009, created the

Department of Insurance, headed by the Commissioner of Insurance. KRS 304.2-110

authorizes the Executive Director

of Insurance to make reasonable rules and administrative regulations necessary for

or as an aid to the effectuation of any provision of the Kentucky Insurance

Code, as defined in KRS 304.1-010. KRS 304.10-170 requires the executive

director to prescribe the form of the verified statement of all surplus lines

transactions for a preceding calendar quarter. KRS 340.10-210 requires the

executive director to promulgate administrative regulations to effectuate the

surplus lines law. 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. (1) "Alien insurer" is defined in KRS 304.1-070(3).

      (2)

"Broker" or "surplus lines broker" is defined in KRS

304.10-030(1).

      (3) "Commissioner"

means the Commissioner of the Department of Insurance.

      (4)

"Department" means the Department of Insurance.

      (5)

"Export" is defined in KRS 304.10-030(2).

      (6) "Foreign

insurer" is defined in KRS 304.1-070(2).

      (7) "Premium

charged" means the premium billed and collected during the preceding

calendar quarter.

 

      Section 2. Quarterly

Reporting and Payment of Surplus Lines Premium Taxes for Insurance Transactions.

(1) The department shall generate a quarterly report of all surplus lines

transactions for a preceding calendar quarter, for each surplus lines broker

based on the affidavits filed in accordance with 806 KAR 10:050.

      (2) The department

shall make the quarterly report available to a licensed surplus lines broker on

its secure Web site, https://insurance.ky.gov/kentucky/secured/Eservices/default.aspx,

at least sixty (60) days following the end of each calendar quarter.

      (3) Each licensed

surplus lines broker shall:

      (a) Retrieve his

or her quarterly report from the department’s secure Web site, http://insurance.ky.gov/kentucky/secured/Eservices/default.aspx;

and

      (b) Remit a signed

copy of the quarterly report, along with the surplus lines premium tax and any

applicable penalties in accordance with KRS 304.99-085, within thirty (30) days

of the end of each calendar quarter.

      (4) Surplus lines

premium tax shall be:

      (a) 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 quarterly

report;

      (b) Payable to the

Kentucky State Treasurer; and

      (c) Remitted to

the Kentucky Department of Insurance, along with the quarterly report, within

thirty (30) days of the end of each calendar quarter for all surplus lines

transactions during the preceding calendar quarter.

      (5) The quarterly

report shall be submitted quarterly by all licensed brokers even if no insurance

transactions were completed during the period.

 

      Section 3. Effective

Date. The administrative regulation shall be effective beginning with the quarterly

report due July 1, 2010. (29 Ky.R. 1440; Am. 1796; eff. 1-16-2003; TAm eff.

8-9-2007; 36 Ky.R. 471; 795; eff. 11-6-2009.)