(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 assessments 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 computation 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 assessments 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 then 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.
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