Last Action | signed by Governor (Acts ch. 48) |
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Title | AN ACT relating to the Surplus Lines Insurance Multi-State Compliance Compact. |
Bill Documents |
Bill
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Impact Statements | Local Mandate |
Bill Request Number | 374 |
Sponsors | B. Damron, B. Yonts |
Summary of Original Version | Create a new section of KRS 304.10-010 to 304.10-210 to adopt the provisions of the Surplus Lines Insurance Multi-State Compliance Compact, including a preamble to explain the necessity of the legislation; Article I to state the purposes of the compact, including establishment of a clearinghouse for receipt and dissemination of premium tax and clearinghouse transaction data related to nonadmitted insurance of multi-state risks; Article II to define terms; Article III to establish the Surplus Lines Insurance Multi-State Compliance Compact Commission and its venue; Article IV to grant authority for the commission to establish mandatory rules; Article V to establish the powers of the commission; Article VI to establish the organization of the commission; Article VII to establish meetings and authorized acts of the commission; Article VIII to authorize rules and operation procedures and rulemaking functions of the ommission; Article IX to establish commission records requirements and enforce authority; Article X to establish a method of dispute resolution; Article XI to authorize review of commission decisions; Article XII to establish commission finance requirements; Article XIII to establish that any state is eligible to be a compacting state, the effective date of the compact, and the authority of the commission to propose future amendments to the compact; Article XIV to establish requirements for withdrawal from the compact, default of a compacting state, termination of a compacting state, and the method for dissolution of the compact; Article XV to establish severability of the terms of the compact and require liberal construction of the compact terms to effectuate the purpose of the compact; and Article XVI to recognize the priority of the enforcement of compacting state laws, except any law regarding non-admitted insurance of multi-state risks which are regulated and preempted by the compact; amend KRS 91A.080 and 304.10-180 to conform by prohibiting assessment of a local government premium tax on multi-state surplus lines in conformity with the Dodd-Frank Wall Street Reform and Consumer Protection Act; effective upon contingency. |
Index Headings of Original Version |
Insurance - Surplus lines, multi-state compliance compact, adopt Interstate Cooperation - Insurance, surplus lines multi-state compliance compact, adopt Local Government - Insurance premium taxes, multi-state surplus lines, restrict Taxation - Insurance premium taxes, surplus lines insurance multi-state compliance compact, adopt Local Mandate - Insurance premium taxes, surplus lines insurance multi-state compliance compact, adopt |
Proposed Amendments |
House Committee Substitute 1 Senate Committee Substitute 1 |
Votes | Vote History |
01/04/11 |
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01/05/11 |
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02/03/11 |
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02/09/11 |
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02/10/11 |
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02/11/11 |
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02/14/11 |
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02/16/11 |
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02/25/11 |
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02/28/11 |
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03/02/11 |
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03/03/11 |
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03/04/11 |
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03/16/11 |
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Amendment | House Committee Substitute 1 |
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Impact Statements | Local Mandate |
Summary | Retain original provisions; add and amend KRS 91A.080, 136.392, 304.10-180 to reference the Non-Admitted and Reinsurance Reform Act of 2010 of the Dodd-Frank Wall Street Reform and Consumer Protection Act which limits insurance premium taxes on multistate non-admitted insurance to one tax per state; amend KRS 304.10-180 to provide that brokers shall pay the state tax of three percent on single state risks located solely in Kentucky and retain the local government premium tax; provide that for multistate risks each broker shall pay a tax at the rate of 12% to be paid to the Kentucky Department of Insurance for distribution to the state and local governments. |
Index Headings |
Insurance - Surplus lines, multi-state compliance compact, adopt Interstate Cooperation - Insurance, surplus lines multi-state compliance compact, adopt Local Government - Insurance premium taxes, multi-state surplus lines, restrict Taxation - Insurance premium taxes, surplus lines insurance multi-state compliance compact, adopt Local Mandate - Insurance premium taxes, surplus lines insurance multi-state compliance compact, adopt |
Amendment | Senate Committee Substitute 1 |
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Impact Statements | Local Mandate |
Summary | Retain original provisions, except change the tax rate each broker shall pay on multistate risks from 12% to 11.8%. |
Index Headings |
Insurance - Surplus lines, multi-state compliance compact, adopt Interstate Cooperation - Insurance, surplus lines multi-state compliance compact, adopt Local Government - Insurance premium taxes, multi-state surplus lines, restrict Taxation - Insurance premium taxes, surplus lines insurance multi-state compliance compact, adopt Local Mandate - Insurance premium taxes, surplus lines insurance multi-state compliance compact, adopt |
Last updated: 1/16/2019 3:43 PM (EST)