{"data":{"id":"us-ky/krs-91a.0806","jurisdiction":"us-ky","citation":"KRS 91A.0806","heading":"Verification of risk location systems and programs -- Administrative","body":"regulations.\n(1) Before January 1, 2009, the Department of Insurance shall by administrative\nregulation establish criteria for the verification of risk location systems and\nprograms. The criteria for verification shall include but not be limited to a\nrequirement that the municipal and county boundary information of a risk location\nsystem or program uses the municipal and county boundary data available from the\nCommonwealth Office of Technology that is based upon municipal and other filings\nwith the Secretary of State.\n(2) Upon application of a vendor or insurance company for verification and payment of\na two thousand five hundred dollar ($2,500) application fee to the Department of\nInsurance, the department shall test the risk location system or program to\ndetermine whether the program shall be verified as meeting the criteria promulgated\nin the administrative regulation required by subsection (1) of this section. The\nDepartment of Ins urance shall maintain a list of verified risk location systems or\nprograms and shall make the list available to insurance companies and the public.\nThe verification of a risk location system or program shall remain valid for a period\nof three (3) years unless revoked by the Department of Insurance.\n(3) The Department of Insurance shall, by administrative regulation, provide an option\nfor an insurance company to apply for a written order by the commissioner of the\nDepartment of Insurance that the insurance c ompany has a limited number of risk\nlocations, not exceeding two hundred (200), in the Commonwealth that may be\nlocated by other means with an equivalent level of accuracy. Such an order shall\nremain valid for a period of three (3) years and as long as the  insured risk of the\ninsurance company does not exceed two hundred (200) in any calendar year.\n(4) An insurance company shall be deemed to perform due diligence in the location of\nrisks if the insurance company employs a verified risk location system or pr ogram\nin its collection of a tax or fee imposed pursuant to KRS 91A.080 and:\n(a) Expends reasonable resources to accurately and reliably implement such\nmethod to collect and to remit the proper tax or fee due to the local\ngovernment that has imposed a tax or fee pursuant to KRS 91A.080;\n(b) Maintains adequate internal controls to correctly include in its database of\npolicyholders the location of the risk insured, in the proper address format, so\nthat matching with the database is accurate;\n(c) Corrects erro rs in the assignment of addresses to local taxing jurisdictions\nwithin the next renewal period after the insurance company discovers the\nerrors, and, if applicable, reports such errors to the provider of the risk\nlocation system or program; and\n(d) In the case of insurance companies that issue policies covering multiple\nlocations, maintains adequate internal controls and employs an accurate and\nconsistent methodology to correctly prorate multilocation policies to assign\nrisks to appropriate addresses or, if  a street address in unavailable, through\nanother appropriate identifier of physical location, and tax jurisdictions.\n(5) Upon the presentation of proof that an insurance company has complied with the\nprovisions of subsection (4) of this section or has rec eived an order of the\nDepartment of Insurance under the administrative regulation promulgated pursuant\nto subsection (3) of this section, the insurance company:\n(a) Shall not be subject to penalties for failure to comply with KRS 91A.080 that\nmay otherwise be imposed pursuant to KRS Chapter 304 or KRS 91A.080(7)\nfor failure of a risk location system to properly locate risks;\n(b) Shall be held harmless from any liability including but not limited to liability\nfor penalties, except for the tax that is due and  interest on the tax that an\ninsurance company has failed to timely remit, that would otherwise be due\nsolely as a result of a failure to properly collect and remit the tax or fee levied\npursuant to KRS 91A.080 because of the failure of a risk location sys tem to\nproperly locate risks; and\n(c) Shall not be subject to penalties under KRS 91A.0804(3)(c).\n(6) On and after January 1, 2010, an insurance company shall use a verified risk\nlocation system or program during the calendar year if the total policies iss ued and\nrenewed by the insurance company in Kentucky in the preceding calendar year is\nmore than two thousand (2,000).","path":["KRS Chapter 91A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=25571","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:49Z","sha256":"6e9a86452397b54da13a6037ee44edb3069ff5a33ce88ffe220d59f44ce5e9bc","source_id":"us-ky","stale":false,"prev":"us-ky/krs-91a.0804","next":"us-ky/krs-91a.0808"},"notice":"GroundRules: Original legal text. Not legal advice."}