Request By:
Hon. Charles R. Holbrook III
Holbrook & Holbrook
Attorneys at Law
Suite 200 Home Federal Building
Ashland, Kentucky 41101
Opinion
Opinion By: Steven L. Beshear, Attorney General; Joe Johnson, Assistant Attorney General
In response to your letter dated May 21, 1982, the correct method of calculating the amount of the surcharge to be levied on insurance premiums pursuant to House Bill 525 is as follows:
(1) $1.50 per $100 premium is interpreted as 1.5% of $100. Therefore, in your example the correct surcharge on a $191.50 premium would be $2.87.
(2) If the premium is less than $100, for example, $50, the surcharge will be 1.5% of $50 or 75 .
There is no minimum surcharge regardless of the amount of the premium. The surcharge will always be 1.5 percent of the premium.