NAMIC Applauds Passage of Ky. Laws to Clean Up Statute Misconceptions

March 23, 2005

The National Association of Mutual Insurance Companies has applauded passage of new laws by the Kentucky General Assembly to clean up misconceptions in existing statutes.

Prior to adjourning Kentucky lawmakers passed House Bill 63 and House Bill 335 to clarify the state’s automobile laws. HB 63 imposes penalties both on the owner of an uninsured motor vehicle and anyone else who drives that vehicle. House Bill 335 repeals KRS 187.290, which defines minimum limits for financial responsibility. This section apparently was overlooked in 1988 when the General Assembly enacted legislation setting the minimum limits at 25/50/10.

“Despite a session of only 30 legislative workdays, Bluegrass State lawmakers enacted a handful of insurance-related bills, all of which Republican Gov. Ernie Fletcher has signed into law,” David Reddick, NAMIC State Affairs manager said.

Among the bills enacted was House Bill 18, which imposes a penalty on any insurer that “willfully engages” in failing to properly collect and remit local premium tax payments. The bill also contains a provision requiring any municipality collecting local premium taxes to refund within 90 days any tax overpayment made by an insurer.

“This is the third year HB 18 has come before the General Assembly,” Reddick noted, “NAMIC and its state advocacy partner, the Insurance Institute of Kentucky, did not oppose the bill because of a provision that allows insurers to be reimbursed if there is an overpayment made to a municipality.”

Other bills of interest that were enacted include:

House Bill 275, which makes numerous changes to the state’s producer licensing laws;

House Bill 323, which creates a 12-member Off-road Motorcycle and ATV Commission to assist the Transportation and Tourism Development Cabinets and the Department of Fish and Wildlife Resources in studying the policies and issues surrounding the use of private and public lands by all-terrain vehicles and off-road motorcycles;

Senate Bill 77, which creates a motorcycle safety education program and establishes program guidelines; and

Senate Bill 86, which codifies an Emergency Order issued by the governor last August turning responsibility for workers’ compensation self-insured groups over to the Office of Insurance.

NAMIC has compiled a preliminary list of enacted Kentucky legislation. The list can be found on NAMIC’s website, NAMIC Online, at

Topics Legislation Auto Kentucky

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