The lawsuits claim that Defendants’ Kentucky policyholders paid local government premium taxes and collection fees in connection with their auto insurance policy premiums. These taxes and fees were either not owed or were charged at rates higher than legally required. The lawsuit seeks refunds of these amounts paid during certain time periods. Defendants deny they did anything wrong.

Local government premium taxes are taxes charges by Kentucky local governments that are calculated and collected by Defendants and then paid to Kentucky local governments.  Collection fees are fees calculated and collected by Defendants for collecting local government premium taxes.