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.)