Kentucky DOI Actions Following the Dissolution of the City of Vicco

The Kentucky Department of Insurance published a Bulletin addressed to all insurers and surplus lines brokers licensed in the state on the measures being taken following the dissolution of the city of Vicco. The city did not file for certification of its status as a city within the Commonwealth, and after a public hearing, an order of dissolution was issued. 

The Final Order was executed on March 1, 2024. Consequently, any ordinance or law in effect in Vicco are null and void. Insurers and surplus lines brokers collecting local government premium taxes (LGPT) for Vicco must cease all collection of taxes and return to policyholders any LGPT collected after March 1, 2024. Insurers and surplus lines brokers may also offer a credit to policyholders on future premiums. If insurers fail to remit the taxes within 30 days there may be administrative action taken, including civil penalties and adding interest to the payments.