[Adopted 2-3-2015 by Ord. No. 15-02[1]]
[1]
Editor's Note: This ordinance superseded former Art. I, Insurance Company License Fees, adopted 3-8-1994 by Ord. No. 67, amended in its entirety 2-24-1998 by Ord. No. 164 (Ch. 115 of the 1993 Code), as subsequently amended.
As used in this article, the following terms shall have the meanings indicated:
INSURANCE COMPANY
Any company authorized to transact insurance business in the state of Kentucky in accordance with KRS Chapter 304. Insurance company shall also include a surplus lines broker licensed in accordance with KRS Chapter 304, Subtitle 10.
LOCAL GOVERNMENT
A city, county, charter county, consolidated local government, urban-county government, or unified local government that, by this article, imposes a license fee or tax upon insurance premium receipts.
There is hereby imposed on each insurance company a license fee or tax for the privilege of engaging in the business of insurance within the County of Henderson.
The license fee or tax imposed upon an insurance company with respect to life insurance policies shall be 9.75% and based upon the first year's premiums only. The license fee or tax shall be applied to the amount of the premiums actually collected within each calendar quarter upon the lives of persons residing within the County of Henderson.
Except as provided in § 137-5 of this article, the license fee or tax imposed upon each insurance company with respect to any insurance policy which is not a life insurance policy shall be 9.75% of the premiums actually collected within each calendar quarter by reason of the issuance of such policies on risks located within the County of Henderson. The license fee or tax shall apply only to those classes of business which such insurance company is authorized to transact, less all premiums returned to policyholders.
No license fee or tax imposed upon premium receipts shall apply to the following:
A. 
Policies of group health insurance provided for state employees under KRS 18A.225;
B. 
Health insurance policies issued to individuals including policies issued through Kentucky Access;
C. 
Workers' compensation insurance;
D. 
Annuities;
E. 
Federal flood insurance;
F. 
Municipal bonds, leases, or other debt instruments issued by or on behalf of Henderson County unless the bonds, leases, or other debt instruments are issued for profit or on behalf of for-profit or private organizations;
G. 
Policies of high deductible health plans as defined in 26 U.S.C. § 223(c)(2), commonly referred to as Health Savings Accounts;
H. 
Policies of insurance, insured or reinsured by the Federal Crop Insurance Corporation, 7 CFR 400.352(b)(2);
I. 
Policies insuring or naming the state or one of its agencies or political subdivisions as an insured and surety bonds where the state or one of its agencies or political subdivisions is the obligee. For the purposes of local government premium tax payments, school districts are considered agencies of the state and policies insuring school districts and bonds with school districts as the obligee are exempt from local government premium taxes;
J. 
Policies issued to public service companies which pay ad valorem taxes;
K. 
Entities issued a certificate of authority to do business in Kentucky only as a health maintenance organization pursuant to KRS 304.38-060;
L. 
Entities issued a certificate of authority to do business in Kentucky as a captive insurer pursuant to KRS 304.49-010; or
M. 
Domestic life insurance companies electing to be taxed under the provisions of KRS 136.320.
All license fees imposed by this article shall be due no later than 30 days after the end of each calendar quarter. The payment shall be submitted to the local government, together with Form LGT-141 on or before the due date. Any license fee or tax not paid on or before the due date shall bear interest from the date due until paid at the interest rate established annually by the Department of Revenue for unpaid or underpaid taxes. This interest shall be paid to the local government together with the license fee or tax that is due. In addition, the insurance company shall pay to the local government a penalty in the amount of 10% of the tax due on a license fee or tax not paid within 30 days after the due date.
In accordance with KRS 91A.080(8), each insurance company subject to the license fee or tax imposed by this article shall annually, by March 31, furnish the local government a written breakdown of all collections in the preceding calendar year for the following categories of insurance:
A. 
Casualty;
B. 
Automobile;
C. 
Inland marine;
D. 
Fire and allied perils;
E. 
Health; and
F. 
Life.
The local government shall transmit a copy of this article, and any amendment(s) thereto, to the Kentucky Commissioner of Insurance at least 100 days prior to the effective date of the article. The Department of Insurance shall remit all license fee or tax payments to Henderson County Treasurer, Suite 305, 20 N. Main Street, Henderson, KY 42420.
All ordinances or parts thereof, in conflict herewith are, to the extent of such conflict hereby repealed.
The provisions of this article are severable and, if any provisions or part thereof shall be held invalid or unconstitutional or inapplicable to any person or circumstance, such invalidity, unconstitutionality or inapplicability shall not affect or impair the remaining provisions of this article.
Pursuant to KRS 91A.080, this article shall become effective on the first day of July 2015.