KRS 304.3-270: Retaliatory provision.

(1) The purpose of this section is to aid in the protection of insurers formed under the

laws of Kentucky and transacting insurance in other states or countries against

discriminatory or onerous requirements under the laws of such states or countries or

the administration thereof.

(2) When by or pursuant to the laws of any other state or foreign country or province

any taxes, licenses and other fees, in the aggregate, and any fines, penalties, deposit

requirements or other material obligations, prohibitions or restrictions are or would

be imposed upon Kentucky insurers, or upon the agents or representatives of such

insurers, which are in excess of such taxes, licenses and other fees, in the aggregate,

or which are in excess of the fines, penalties, deposit requi rements or other

obligations, prohibitions, or restrictions directly imposed upon similar insurers, or

upon the agents or representatives of such insurers, of such other state or country

under the statutes of this state, so long as such laws of such other state or country

continue in force or are so applied, the same taxes, licenses and other fees, in the

aggregate, or fines, penalties, or deposit requirements or other material obligations,

prohibitions, or restrictions of whatever kind shall be imposed by the commissioner

upon the insurers, or upon the agents or representatives of such insurers, of such

other state or country doing business or seeking to do business in Kentucky. Any

tax, license or other fee or other obligation imposed by any city, county, or other

political subdivision or agency of such other state or country on Kentucky insurers

or their agents or representatives shall be deemed to be imposed by such state or

country within the meaning of this section.

(3) This section shall not apply as t o personal income taxes, nor as to ad valorem taxes

on real or personal property, nor as to special purpose obligations or assessments

imposed by another state in connection with particular kinds of insurance other than

property insurance; except that dedu ctions, from premium taxes or other taxes

otherwise payable, allowed on account of real estate or personal property taxes paid

shall be taken into consideration by the commissioner in determining the propriety

and extent of retaliatory action under this section.

(4) For the purposes of this section the domicile of an alien insurer, other than insurers

formed under the laws of Canada, or a province thereof, shall be that state

designated by the insurer in writing filed with the commissioner at time of

admission to this state or within six (6) months after the effective date of this code,

whichever date is the later, and may be any one (1) of the following states:

(a) That in which the insurer was first authorized to transact insurance;

(b) That in which is located the insurer's principal office; or

(c) That in which is held the largest deposit of trusteed assets of the insurer for

the protection of its policyholders in the United States.

If the insurer makes no such designation its domicile shall be deemed to be that

state in which is located its principal office.

(5) For the purpose of this section assessments by insurance guaranty associations or

similar organizations in any other state shall not be considered or used in

determining retaliatory taxation to b e imposed by the commissioner upon insurers

doing business in this state that are incorporated or organized under the laws of such

other state, or upon their agents.