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

      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.)

Notation

      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.