The Kentucky Department of Insurance has issued a bulletin announcing that the monthly premium surcharge tax is increasing from 1.5% to 1.8% effective April 1, 2010.
The monthly premium surcharge tax is required to be paid by all domestic, foreign, or alien insurers, other than life and health insurers, and it will increase from $1.50 to $1.80 per $100 of premiums, assessments, or other charges for insurance coverage provided to policyholders on risks located in Kentucky. The adjustment to the premium surcharge rate will be effective and applied to policies issued or renewed on or after April 1, 2010.
The exceptions listed in KRS 136.392(5) remain effect. In addition:
• Municipal premium taxes imposed pursuant to KRS 91A are not to be included in calculation of the premium surcharge;
• Life and health insurers are not subject to the premium surcharge imposed by KRS 136.392; and
• Pursuant to KRS 342.122(1)(e), the premium surcharge shall not be imposed on Workers’ Compensation premium.