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NAMIC Commends Kentucky Governor, Legislature For Municipal Premium Tax Reform Bill

INDIANAPOLIS (April 14, 2008) — At a special signing ceremony being held today, Kentucky Gov. Steve Beshear is signing HB 524, legislation that will streamline the administration of the state’s municipal premium tax, according to the National Association of Mutual Insurance Companies (NAMIC).

“NAMIC applauds Governor Beshear and the Kentucky Legislature for adopting this crucial piece of legislation,” said Joe Thesing, NAMIC director of state affairs. “This bill represents the cooperative efforts of Representative Steve Riggs, the sponsor of the bill, the Kentucky League of Cities, the Kentucky Association of Counties, and the insurance industry.”

The bill was passed and sent to the governor earlier this month.

“HB 524 will help resolve many problems faced by local governments, insurance companies, and taxpayers with the municipal premium tax,” said Mark Treesh, executive director of the Insurance Institute of Kentucky, one of several insurance industry entities involved in crafting the bill.

The bill’s provisions include:

  • Establishing orderly administrative procedures for refunds and assessments between insurers and local governments and requests for and payment of refunds to policyholders.
  • Requiring insurers to use risk location technology verified for accuracy by the Kentucky Office of Insurance, so insurers may properly collect the tax and make timely payments of taxes due to local governments.
  • Requiring insurers to pay fees to fund the Kentucky Office of Insurance expenses for the program.
  • Requiring insurers to give policyholders notice about the premium tax.
  • Protecting local governments and insurers from premature litigation by requiring that administrative processes be completed before litigation can be filed.
  • Shortening the statute of limitations from five years to two years for additional assessments by local governments, amended returns by insurance companies, and requests for refunds from policyholders.
  • Establishing a Local Premium Tax Advisory Council made up of representatives of local governments and insurers.

For further information, contact
Nancy Grover
Director - Media Relations
(202) 628-1558 Tel
(202) 628-1601 Fax
ngrover@namic.org

Posted: Monday, April 14, 2008 12:00:00 AM. Modified: Tuesday, April 15, 2008 10:31:01 AM.

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