Unauthorized Insurers -- Prohibitions and Process

KRS tit. XXV, ch. 304, subtit. 11

in effect

KRS 304.11-010 Short title

304.11-010. Short title KRS 304.11-020 to 304.11-050, inclusive, constitute and may be cited as the "Kentucky Unauthorized Insurer's Law." Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 11, sec. 1, effective June 18, 1970.

KRS 304.11-020 Unauthorized Insurer's Law -- Exemptions

304.11-020. Unauthorized Insurer's Law -- Exemptions (1) Other than KRS 304.11-050, the provisions of KRS 304.11-020 to 304.11-050, shall not apply to any insurance company or underwriter issuing contracts of insurance to industrial insureds, government entity insureds, and exempt commercial policyholders, nor to any contract of insurance issued to any one (1) or more industrial insureds. (2) For the purpose of this section: (a) An "industrial insured" is: 1. An insured who procures the insurance of any risk or risks other than life and annuity contracts by use of the services of a full-time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant; and 2. An insured whose aggregate annual premiums for insurance on all risks total at least twenty-five thousand dollars ($25,000); and 3. An insured having at least twenty-five (25) full-time employees; and 4. All entities that have qualified as industrial insureds as of July 1, 1999; (b) A "government entity insured" is an insured: 1. That is a government entity, municipal corporation, or public agency located in a city or county having a population of less than fifty thousand (50,000); and 2. That procures the insurance of any risk or risks, other than life and annuity contracts, by use of the services of a full-time employee acting as an insurance manager or buyer, or by the use of the services of a regularly and continuously retained qualified insurance consultant; and 3. Whose aggregate annual premiums for insurance on all risks total at least one hundred thousand dollars ($100,000), exclusive of life, health, medical, or annuity premiums; and 4. That has at least fifty (50) full-time employees; and 5. That satisfies the criteria the commissioner promulgates by administrative regulation; and (c) 1. An "exempt commercial policyholder" means an insured that employs the services of an insurance agent or broker, procures commercial insurance with the services of a full-time risk manager, or a licensed insurance consultant, pursuant to Subtitle 9 of this chapter and: a. Is a city, county, or urban-county with a population of at least fifty thousand (50,000) persons, or the Commonwealth, or a not-for- profit organization or a public entity with an annual budget of at least twenty-five million dollars ($25,000,000) or assets of at least twenty-five million dollars ($25,000,000) in the preceding fiscal year; or b. Certifies that it meets all four (4) of the following criteria: i. Possesses a net worth of more than twenty-five million dollars ($25,000,000) at the time the policy of insurance is issued; ii. Generated net revenue or sales of more than fifty million dollars ($50,000,000) in the preceding fiscal year; iii. Employs more than one hundred (100) employees per individual company or two hundred (200) employees per holding company aggregate at the time the policy of insurance is issued; and iv. Paid annual aggregate insurance premiums of more than five hundred thousand dollars ($500,000) in the preceding fiscal year. 2. As used in this subsection, "risk manager" means a person qualified to assess an exempt commercial policyholder's insurance needs and analyze and negotiate a policy of insurance on behalf of an exempt commercial policyholder. A risk manager shall be: a. A full-time employee of an exempt commercial policyholder who holds a professional designation relevant to the type of insurance to be purchased by the exempt commercial policyholder; or b. A person retained by an exempt commercial policyholder who holds a professional designation relevant to the type of insurance to be purchased by the exempt commercial policyholder. (3) (a) Policies issued to industrial insureds, government entity insureds, and exempt commercial policyholders are exempt from the rate and policy form requirements of this chapter. (b) Policies issued to industrial insureds, government entity insureds, and exempt commercial policyholders shall contain a disclaimer in language similar to the following: "The rate provided for in this policy is exempt from the filing and approval requirements of Subtitle 13 of KRS Chapter 304. The forms which make up this policy contract are exempt from the filing and approval requirements of Subtitle 14 of KRS Chapter 304." (c) The exemption of commercial policyholders under this section shall not apply to Subtitle 39 of this chapter, KRS Chapter 342, sections in Subtitle 13 of this chapter that pertain to workers' compensation insurance, and KRS 304.12- 230. (4) All industrial insureds, government entity insureds, and exempt commercial policyholders shall reapply to the commissioner for their respective insured status every three (3) years, on a form the commissioner shall promulgate by administrative regulation. (5) KRS 304.11-020 to 304.11-050, inclusive, shall not apply to any life insurance company organized and operated, without profit to any private shareholder or individual, exclusively for the purpose of aiding educational or scientific institutions organized and operated without profit to any private shareholder or individual by issuing insurance and annuity contracts directly from the home office of the company and without agents or representatives in this state only to or for the benefit of such institutions and to individuals engaged in the services of such institutions, nor to any policy or contract which it issues; but this exemption shall be conditioned upon any such company complying with the following requirements: (a) Payment of an annual registration fee; (b) Filing a copy of any policy or contract issued to Kentucky residents with the commissioner; (c) Filing a copy of its annual statement prepared pursuant to the laws of its state of domicile, as well as such other financial material as may be requested, with the commissioner; and (d) Providing, in such form as may be acceptable for the appointment of the Secretary of State as its true and lawful attorney upon whom may be served all lawful process in any action or proceeding against such company arising out of any policy or contract it has issued to, or which is currently held by, a Kentucky citizen and process so served against such company shall have the same force and validity as if served upon the company. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1101, effective July 15, 2010; and ch. 166, sec. 1, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 145, sec. 1, effective July 14, 2000. -- Amended 1982 Ky. Acts ch. 319, sec. 6, effective July 15, 1982; and ch. 320, sec. 16, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 11, sec. 2, effective June 18, 1970. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 166, which do not appear to be in conflict and have been codified together.

KRS 304.11-030 Prohibition of unauthorized insurance business -- Applicability of law - - Liability of person acting as agent -- Commissioner's power to enjoin

304.11-030. Prohibition of unauthorized insurance business -- Applicability of law - - Liability of person acting as agent -- Commissioner's power to enjoin (1) It shall be unlawful for any company to enter into a contract of insurance as an insurer or to transact insurance business in this state, as set forth in subsection (2) of this section without a certificate of authority from the commissioner; provided, that this subsection shall not apply to: (a) The lawful transaction of surplus lines insurance; (b) The lawful transaction of reinsurance by insurers; (c) Transactions in this state involving a policy lawfully solicited, written, and delivered outside of this state covering only subjects of insurance not resident, located, or expressly to be performed in this state at the time of issuance, and which transactions are subsequent to the issuance of such policy; (d) Transactions involving contracts of insurance independently procured through negotiations occurring entirely outside of this state which are reported and on which premium tax is paid; (e) Attorneys acting in the ordinary relation of attorney and client in the adjustment of claims or losses; (f) Transactions in this state involving group life and group health or blanket health insurance or group annuities where the master policy of such groups was lawfully issued and delivered in a state in which the company was authorized to do an insurance business; (g) Transactions in this state involving any policy of insurance issued prior to July 1, 1968; and (h) Insurance on vessels, craft or hulls, cargoes, marine builder's risk, marine protection and indemnity or other risk, including strikes and war risks commonly insured under ocean or wet marine forms of policy. (2) Any of the following acts in this state effected by mail or otherwise is defined to be doing an insurance business in this state. The venue of an act committed by mail is at the point where the matter transmitted by mail is delivered and takes effect. Unless otherwise indicated, the term "insurer" as used in this section includes all corporations, associations, partnerships, and individuals, engaged as principals in the business of insurance and also includes interinsurance exchanges and mutual benefit societies: (a) The making of or proposing to make, as an insurer, an insurance contract; (b) The making of or proposing to make, as guarantor or surety, any contract of guaranty or suretyship as a vocation and not merely incidental to any other legitimate business or activity of the guarantor or surety; (c) The taking or receiving of any application for insurance; (d) The receiving or collection of any premiums, commissions, membership fees, assessments, dues or other consideration for any insurance or any part thereof; (e) The issuance or delivery of contracts of insurance to residents of this state or to persons authorized to do business in this state; (f) Directly or indirectly acting as an agent for, or otherwise representing or aiding on behalf of another, any person or insurer in the solicitation, negotiation, procurement or effectuation of insurance or renewals thereof or in the dissemination of information as to coverage or rates, or forwarding of applications, or delivery of policies or contracts, or inspection of risks, or fixing of rates or investigation or adjustment of claims or losses, or in the transaction of matters subsequent to effectuation of the contract and arising out of it, or in any other manner representing or assisting a person or insurer in the transaction of insurance with respect to subjects of insurance resident, located or to be performed in this state. The provisions of this subsection shall not operate to prohibit full-time salaried employees of a corporate insured from acting in the capacity of an insurance manager or buyer in placing insurance in behalf of such employer; (g) The doing of any kind of insurance business specifically recognized as constituting the doing of an insurance business within the meaning of the statutes relating to insurance; (h) The doing or proposing to do any insurance business in substance equivalent to any of the foregoing in a manner designed to evade the provisions of this code; and (i) Any other transactions of business in this state by an insurer. (3) (a) The failure of a company transacting insurance business in Kentucky to obtain a certificate of authority shall not impair the validity of any act or contract of such company and shall not prevent such company from defending any action at law or suit in equity in any court of this state. (b) In event of failure of any such unauthorized insurer to pay any claim or loss within the provisions of such insurance contract, any person who assisted or in any manner aided directly or indirectly in the procurement of such insurance contract shall be liable to the insured for the full amount of the claim or loss in the manner provided by the provisions of such insurance contract. (4) Whenever the commissioner believes, from evidence satisfactory to him or her, that any company is violating or about to violate the provisions of these sections, the commissioner may, through the Attorney General of this state, cause a complaint to be filed in the Circuit Court of Franklin County to enjoin and restrain such company from continuing such violation or engaging therein or doing any act in furtherance thereof. The court shall have jurisdiction of the proceeding and shall have the power to make and enter an order or judgment awarding such preliminary or final injunctive relief as in its judgment is proper. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1102, effective July 15, 2010. -- Created 1970 Ky. Acts ch. 301, subtit. 11, sec. 3, effective June 18, 1970.

KRS 304.11-040 Service of process on unauthorized persons doing acts of insurance business in Kentucky -- Requirements for defense of action -- Reports to commissioner required

304.11-040. Service of process on unauthorized persons doing acts of insurance business in Kentucky -- Requirements for defense of action -- Reports to commissioner required (1) No person or insurer shall directly or indirectly perform any of the acts of doing an insurance business as defined in KRS 304.11-020 to 304.11-050, inclusive, except as provided by and in accordance with the specific authorization by statute. However, should any unauthorized person or insurer perform any act of doing an insurance business as set forth in KRS 304.11-020 to 304.11-050, inclusive, it shall be equivalent to and shall constitute an irrevocable appointment by such person or insurer, binding upon the person or insurer, his or her executor or administrator, or successor in interest if a corporation, of the Secretary of State or his or her successor in office to be the true and lawful attorney upon whom may be served all lawful process in any action, suit, administrative hearing or proceeding in any court arising out of doing an insurance business in this state or instituted by or on behalf of an insured or beneficiary arising out of any such acts of doing an insurance business. Any act of doing an insurance business by any unauthorized person or insurer shall be signification of its agreement that such service of process is of the same legal force and validity as personal service of process in this state upon such person or insurer. (2) Service of process in any action may be made by service upon the Secretary of State as provided in KRS 304.3-230. (3) Service of process in any such action, suit, or proceeding shall in addition to the manner as provided in KRS 304.11-020 to 304.11-050, inclusive, be valid if served upon any person within this state who, in this state on behalf of such insurer, is soliciting insurance, making, issuing, or delivering any contract of insurance, or collecting or receiving any premium, membership fee, assessment, or other consideration for insurance, and if: (a) A copy of such process is sent within ten (10) days thereafter by certified mail by the plaintiff or plaintiff's attorney to the defendant at the last known principal place of business of the defendant; and (b) The defendant's receipt, or the receipt issued by the post office showing the name of the sender of the letter and the name and address of the person to whom the letter is addressed, and an affidavit of the plaintiff or plaintiff's attorney showing a compliance herewith are filed with the clerk of the court in which such action is pending on or before the date the defendant is required to appear or within such further time as the court may allow. (4) No plaintiff shall be entitled to a judgment by default under KRS 304.11-020 to 304.11-050, inclusive, until the expiration of thirty (30) days from the date of the filing of the affidavit of compliance. (5) Nothing in subsections (1) to (5), inclusive, of this section shall limit or abridge the right to serve any process, notice, or demand upon any insurer in any other manner now or hereafter permitted by law. (6) The Attorney General upon request of the commissioner may proceed in the courts of this state or any other state or in any federal court or agency to enforce an order or decision in any court proceeding or in any administrative proceeding before the commissioner. (7) Before any unauthorized person or insurer files or causes to be filed in any pleading in any court action, suit or proceeding or in any notice, order, pleading, or process in such administrative proceeding before the commissioner instituted against such person or insurer, by services made as provided in subsections (1) to (5), inclusive, of this section such person or insurer shall either: (a) Deposit with the clerk of the court in which such action, suit, or proceeding is pending, or with the commissioner in administrative proceedings before the commissioner, cash or securities, or file with such clerk or commissioner a bond with good and sufficient sureties, to be approved by the clerk or commissioner in an amount to be fixed by the court or commissioner sufficient to secure the payment of any final judgment which may be rendered in such action or administrative proceeding. (b) Procure a certificate of authority to transact the business of insurance in this state. (8) The court in any action, suit, or proceeding in which service is made as provided in subsections (1) to (5), inclusive, of this section may in its discretion, order such postponement as may be necessary to afford the defendant reasonable opportunity to comply with the provisions of subsection (7) of this section and to defend such action. (9) Nothing in subsection (7) of this section shall be construed to prevent an unauthorized person or foreign or alien insurer from filing a motion to quash a writ or to set aside service thereof made in the manner provided in subsections (1) to (5), inclusive, of this section on the ground that such unauthorized person or insurer has not done any of the acts enumerated in subsections (1) to (3), inclusive, of KRS 304.11-030. (10) In an action against an unauthorized person or insurer upon a contract of insurance issued or delivered in this state to a resident thereof or to a corporation authorized to do business therein, if the person or insurer has failed for thirty (30) days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, and it appears to the court that such refusal was without reasonable cause, the court may allow to the plaintiff a reasonable attorney fee and include such fee in any judgment that may be rendered in such action. Failure of the person or insurer to defend any such action shall be deemed prima facie evidence that its failure to make payment was without reasonable cause. (11) Whenever the commissioner has reason to believe that insurance has been effectuated by or for any person in this state with an unauthorized insurer the commissioner shall in writing order such person to produce for examination all insurance contracts and other documents evidencing insurance with both authorized and unauthorized insurers and to disclose to the commissioner the amount of insurance, name and address of each insurer, gross amount of premium paid or to be paid and the name and address of the person or persons assisting or aiding in the solicitation, negotiation, or effectuation of such insurance. (12) Every person investigating or adjusting any loss or claim on a subject of insurance in this state shall immediately report to the commissioner every insurance policy or contract which has been entered into by an insurer not authorized to transact such insurance in this state. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1103, effective July 15, 2010. -- Amended 1982 Ky. Acts ch. 319, sec. 7, effective July 15, 1982; and ch. 320, sec. 17, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 11, sec. 4, effective June 18, 1970.

KRS 304.11-042 Disclosure agreement for compensation received by an agent from an insurer or client for placement of insurance and service rendered to client

304.11-042. Disclosure agreement for compensation received by an agent from an insurer or client for placement of insurance and service rendered to client (1) As used in this section, unless the context requires otherwise: (a) 1. "Agent" means an agent as defined in KRS 304.9-020; 2. "Agent" does not include the following: a. A managing general agent; b. A surplus lines broker; c. A licensed insurance agent who is employed by an insurer; or d. An exclusive agent under contract with one (1) insurer or a group of affiliated insurers who receives his sole compensation from the insurer; (b) "Client" means a person that purchases insurance covering the business operations and exposures to loss of that person, and that has entered into an agreement with an agent pursuant to a written disclosure agreement as provided in subsection (2) of this section, and: 1. For the purpose of health insurance as defined in KRS 304.5-040, life insurance as defined in KRS 304.5-020, but only as it relates to group life contracts, and ancillary employee benefits, the person meets or exceeds at least one (1) of the following measures from subdivisions a. and b. of this subparagraph and one (1) from subdivisions c. and d. of this subparagraph for the size of the business for the most recent fiscal year end closed: a. Total assets of the business of at least twenty-five million dollars ($25,000,000); or b. Total sales or revenue of at least twenty-five million dollars ($25,000,000) per year; and c. Total number of eligible employees of at least one hundred (100); or d. Annual health and employee benefits premiums of at least five hundred thousand dollars ($500,000); 2. A person whose health benefit plan is procured through an employer- organized association as defined in KRS 304.17A-005; 3. For the purposes of property insurance as defined in KRS 304.5-050 and casualty insurance as defined in KRS 304.5-070, the person meets or exceeds at least one (1) of the following measures from subdivisions a. and b. of this subparagraph and one (1) from subdivisions c. and d. of this subparagraph for the size of the business for the most recent fiscal year end closed: a. Total assets of the business of at least twenty-five million dollars ($25,000,000); or b. Total sales or revenue of at least twenty-five million dollars ($25,000,000) per year; and c. Total number of eligible employees of at least one hundred (100); or d. Annual property and casualty policy premiums of at least four hundred thousand dollars ($400,000); or 4. A person purchasing an unbundled insurance program either with fixed costs exceeding one hundred thousand dollars ($100,000) or with a deductible relative to any one (1) line of coverage of at least one hundred thousand dollars ($100,000); (c) "Compensation" means any commissions or payments received by an agent from an insurer or a client for the sale of insurance or any other service rendered on behalf of the client; (d) "Written disclosure agreement" means a written document signed by an agent and a client that describes the compensation arrangement agreed to between the agent and the insurer or the client, the method of payment of the compensation, and the services to be provided for the compensation, and that otherwise complies with this section; (e) "Service" means any assistance or programs provided by the agent to the client that is intended to reduce the future cost of insurance of the client or the probability or severity of loss and means any assistance or programs designed to assist in the efficient administration of the client's insurance program or to assist the client in complying with any state or federal law; and (f) "Unbundled insurance program" means a large account where the insurer provides the insurance coverage and related underwriting services for the insured, then the insured obtains claim adjustment services from another entity engaged in the business of providing such services and not from the insurer itself. (2) An agent may receive from an insurer or client, compensation in any amount agreed to by the agent and the insurer or client for placement of insurance and for a service rendered on behalf of the client if, prior to the placement of the insurance, the provision of a service as a result of the placement, or for the provision of any other service, the agent and the client enter into a written disclosure agreement. A disclosure agreement shall: (a) Include a description of the services to be provided pursuant to the agreement, specify if any policy or service is exempt from the agreement, and specify the compensation to be received by the agent from the insurer or client; (b) Be signed by the client prior to the placement of insurance or provision of services; and (c) Be retained by the agent for a period of five (5) years from the date the agreement expires or is otherwise terminated. (3) The agent shall verify, prior to the sale, solicitation, or negotiation with the client, that the person qualifies as a client under subsection (1)(b) of this section. The agent shall retain sufficient documentation in the agent’s files to show the client meets the qualification criteria in subsection (1)(b) of this section. (4) An agent, when operating under a written disclosure agreement with a client under this section, may: (a) Use an authorized property and casualty insurer; (b) Use an unauthorized property and casualty insurer if the business is exported in accordance with Subtitle 10 of this chapter; and (c) Use only an authorized life, health, or workers' compensation insurer. (5) (a) Any insurer writing business in accordance with this section shall comply with applicable rate and form filing requirements. (b) Notwithstanding applicable rate and form filing requirements, an agent placing business for a client may provide for alternative compensation in a written disclosure agreement as provided in subsection (2) of this section. (6) This section shall not apply to personal lines of insurance issued for personal or family protection to a person. Effective: July 15, 2008 History: Created 2008 Ky. Acts ch. 31, sec. 2, effective July 15, 2008.

KRS 304.11-045 Jurisdiction over providers of health care benefits

304.11-045. Jurisdiction over providers of health care benefits (1) The purpose of this section is to give Kentucky jurisdiction over providers of health care benefits; to indicate how each provider of health care benefits may show under what jurisdiction it falls; to allow for examination by Kentucky if the provider of health care benefits is unable to show it is subject to another jurisdiction; to make such a provider of health care benefits subject to the laws of Kentucky if it cannot show that it is subject to another jurisdiction; and to disclose to purchasers of such health care benefits whether or not the plans are fully insured. (2) Notwithstanding any other provision of law, and except as provided herein, any person or other entity which provides coverage in this state for medical, surgical, chiropractic, physical therapy, speech pathology, audiology, professional mental health, dental, hospital, or optometric expenses, whether such coverage is by direct payment, reimbursement, or otherwise, shall be presumed to be subject to the jurisdiction of the department, unless the person or other entity shows that while providing such services it is subject to the jurisdiction of another agency of this state, any subdivision thereof, or the federal government. (3) If a person or entity wishes to show that it is subject to the jurisdiction of another agency of this state, any subdivision thereof, or the federal government, such showing shall be made by providing to the commissioner the appropriate certificate, license, or other document issued by other governmental agency which permits or qualifies it to provide those services. (4) Any person or entity which is unable to show under subsection (3) that it is subject to the jurisdiction of another agency of this state, any subdivision thereof, or the federal government, shall submit to an examination by the commissioner to determine the organization and solvency of the person or the entity, and to determine whether or not such person or entity complies with the applicable provisions of this chapter. (5) Any person or entity unable to show that it is subject to the jurisdiction of another agency of this state, any subdivision thereof, or the federal government, shall be subject to all appropriate provisions of this code regarding the conduct of its business. (6) Any production agency or administrator which advertises, sells, transacts, or administers the coverage in this state described in subsection (2) of this section and which is required to submit to an examination by the commissioner under subsection (4) of this section shall, if said coverage is not fully insured or otherwise fully covered by an authorized life or health insurer, nonprofit hospital, medical- surgical, dental, and health service corporation, health maintenance organization, or prepaid dental plan organization, advise every purchaser, prospective purchaser, and covered person of such lack of insurance or other coverage. Any administrator which advertises or administers the coverage in this state described in subsection (2) of this section which is required to submit to an examination by the commissioner under subsection (4) of this section shall advise any production agency of the elements of the coverage, including the amount of "stop loss" insurance in effect. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1104, effective July 15, 2010. -- Created 1986 Ky. Acts ch. 437, sec. 16, effective July 15, 1986.

KRS 304.11-050 Premium tax on unauthorized insurer

304.11-050. Premium tax on unauthorized insurer (1) Effective with all premiums collected during the calendar year 1968, except premiums on lawfully procured surplus lines insurance, every unauthorized insurer shall pay to the secretary of revenue before March 1, next succeeding the calendar year in which the insurance was so effectuated, continued, or renewed, a premium tax of two percent (2%) of gross premiums charged for such insurance on subjects resident, located, or to be performed in this state. The insurance whether procured through negotiation or an application, in whole or in part occurring or made within or outside of this state, or for which premiums in whole or in part are remitted directly or indirectly from within or outside of this state, shall be deemed to be insurance procured or continued in this state. The term "premium" includes all premiums, membership fees, assessments, dues, and any other consideration for insurance. If the tax prescribed by this section is not paid within the time stated, the tax shall be increased by a penalty of twenty-five percent (25%) and by the amount of an additional penalty computed at the rate of one percent (1%) per month or any part thereof from the date the payment was due to the date paid. (2) If the policy covers risks or exposures only partly in the state, the tax payable shall be computed on the portions of the premium which are properly allocable to the risks or exposures located in the state. In determining the amount of premiums taxable in this state, all premiums written, procured, or received in this state and all premiums on policies negotiated in this state shall be deemed written on property or risks located or resident in this state, except those premiums as are properly allocated or apportioned and reported as taxable premiums to any other state or states. (3) Proration of premium taxes due from those insureds specified in KRS 304.11-020 under a contract procured from an unauthorized insurer having property in states other than Kentucky, shall be determined by administrative regulations promulgated by the secretary of revenue using the following criteria where applicable: (a) Percentage of physical assets in Kentucky; (b) Percentage of employee payroll in Kentucky; (c) Percentage of sales in Kentucky; and (d) Percentage of taxable income reportable in Kentucky. (4) The secretary of revenue, or the Attorney General upon request of the secretary of revenue, shall proceed in the courts of this state or any other state or in any federal court or agency to recover tax not paid within the time prescribed in this section. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 145, sec. 2, effective July 14, 2000. -- Amended 1992 Ky. Acts ch. 338, sec. 19, effective July 14, 1992. -- Created 1970 Ky. Acts ch. 301, subtit. 11, sec. 5, effective June 18, 1970.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38700Fetched: 10/20/2026