KRS 304.45-080: Taxation of risk retention groups and insurers.

(1) All risk retention groups and insurers providing liability insurance to purchasing

groups shall be subject to taxation and shall be deemed to be insurers for the

purpose of assessing and collecting taxes on premiums. All risk retention groups

and insurers issuing liability insurance policies to purchasing groups shall be subject

to the taxes set forth in KRS 91A.080 and 136.340 and the surcharge imposed by

KRS 136.392.

(2) All persons involved in the solicitation, negotiation, or procurement of liability

insurance from a risk retention group or from an insurer issuing a liability insurance

group to a purchasing group shall cooperate in the reporting and payment of taxes

on premiums for risks located in this state.

(3) Failure of risk retention groups, insure rs issuing liability insurance policies to

purchasing groups, and any person involved in the solicitation, negotiation, or

procurement of liability insurance from a risk retention group or from an insurer

issuing a liability insurance policy to a purchasin g group to pay taxes in accordance

with this section or to cooperate in accordance with this section is a ground for

suspension or revocation of certificates of authority, licenses, or permission to do

business in this state, imposition of civil penalties, or both. The commissioner may

take any action necessary to assure that applicable premium taxes are paid to the

appropriate taxing authorities.