KRS 304.42-130: Offset of premium tax liability to state -- Surcharge on premiums.

(1) A member insurer, other than a nonprofit hospital, medical, surgical, dental, or

health service corporation, may offset its tax liability to this state imposed against it

under KRS 136.320(3) and (4), 136.330, 136.340, or 136.350, whichever may be

applicable, against the assessment described in subsection (8) of KRS 304.42-090 to

the extent of twenty percent (20%) of the amount of the assessment for each of the

five (5) calendar years following the year in which the assessment was paid. If a

member insurer should cease doing business, all uncredited assessments may be

credited against its tax liability for the year in which it ceases doing business.

(2) A member insurer that is exempt from taxes referenced in subsection (1) of this

section may recoup its as sessments by a surcharge on its premiums in a sum

reasonably calculated to recoup the assessments over a reasonable period of time, as

approved by the commissioner. Amounts recouped shall not be considered

premiums for any other purpose, including the comp utation of gross premium tax,

the medical loss ratio, or agent commission. If a member insurer collects excess

surcharges, the member insurer shall remit the excess amount to the association, and

the excess amount shall be applied to reduce future assessme nts in the appropriate

account.

(3) Any sums acquired by refund, pursuant to KRS 304.42-090(6), from the association

which have theretofore been written off by contributing member insurers and offset

against taxes as provided in this section, and are not t hen needed for purposes of

this subtitle, shall be paid by the association to the commissioner and by the

commissioner deposited with the State Treasurer for credit to the general fund of

this state.