KY| The Kentucky Department of Insurance Bulletin 2025-01 outlines updated procedures, forms, and requirements for insurance companies and surplus lines brokers regarding the collection and remittance of LGPT. The Bulletin details changes to tax schedules, codes, and payee listings, and emphasizes the need for accurate risk location determination using verified systems. It specifies disclosure requirements for policyholders, exemptions from LGPT liability, and instructions for quarterly and annual filings, including electronic submission mandates. The document also addresses penalties for noncompliance, procedures for refunds and credits, and the handling of minimum taxes, flat fees, and collection fees, ensuring all stakeholders are informed of their obligations for the July 1, 2025, to June 30, 2026, period.
Five Main Bullet Points:
- Insurance companies and surplus lines brokers must comply with updated LGPT rates, forms, and procedures effective July 1, 2025, including new schedules and payee listings.
- Accurate risk location is mandatory, requiring the use of a Verified Risk Location system for entities with over 2,000 policies, and ZIP codes cannot be used to determine LGPT liability.
- Specific disclosure requirements apply when LGPT is charged to policyholders, including itemization by taxing jurisdiction and additional instructions for surplus lines business.
- Numerous exemptions exist for certain types of insurance and entities, such as group health, workers’ compensation, annuities, and policies for public agencies or specific organizations.
- Quarterly and annual LGPT filings are required, with strict deadlines, electronic submission mandates, and penalties for late or incorrect payments; procedures for credits, refunds, and appeals are also outlined.