All life insurance companies, stock insurance companies, mutual insurance companies, and captive insurers doing business in Kentucky pay Insurance Premiums Tax. This tax is assessed on premiums collected by insurance companies on policies written in Kentucky during the preceding calendar year.
Foreign, domestic, or alien insurer (other than life insurers) both charge and collect Insurance Premium Surcharge on premiums, assessments, or other charges, for insurance coverage provided to its policyholders on risks located in Kentucky.
The surcharge rate is:
$1.80 per $100 of premiums, and assessments, or other charges for insurance coverage.
When running a quote in LodeStar for a property located in Kentucky, Insurance Premiums Tax and Insurance Premium Surcharge are itemized out under the fee name "Municipal Premium Tax:
We do have the ability to bundle this tax into another fee name, if preferred. Please reach out to firstname.lastname@example.org for this update.
For more information, please visit the Kentucky Department of Revenue website.