Franklin County government " trying to collect its share of insurance premium taxes it claims has disproportionately gone to the city " has filed 14 lawsuits against more than 65 insurance companies.
The action is to "remedy violations of state law and local ordinance in connection with defendants' collective misconduct in the failure to remit insurance premium taxes" to Franklin County, the lawsuits claim.
The suits in U.S. District Court in Frankfort seek to examine the accounting books of the insurance companies to determine if they have "remitted all taxes" owed for years to county government.
The county also seeks interest and penalties for all delinquent amounts owed, plus costs and attorney fees.
County Attorney Rick Sparks told Fiscal Court, in Friday's work session, the suits were filed electronically on July 12-14. Frankfort attorney Kyle Thompson " who has been working on collections for Fiscal Court since February " filed the suits.
In Thompson's agreement with Fiscal Court, he would receive 25 percent of whatever is collected, but would not be paid if nothing is collected.
After Friday's meeting, Sparks said, "We're trying again to follow up on the question of whether (insurance companies) are making the proper payments to the city or county."
Sparks said nobody knows how much tax money is still owed to the county "because we don't know the degree of the misallocations. And to add insult to injury, the state just passed a law that affects the county negatively.
"As of July 15 it reduced the window to go back on delinquent insurance premium tax to two years" as opposed to five years previously.
Sparks said former Judge-Executive Bob Roach did a great job of contacting the insurance companies.
"They all recognized there was a problem but no one would say we're willing to solve the problem, or we know the answer to the problem," Sparks said.
Franklin County tried to get separate zip codes for the city and the unincorporated areas of the county, which would have basically solved the problem, Sparks said.
"But that fell on deaf ears," he said.
In 2006 Fiscal Court began getting a larger share of the insurance premium tax, which because of insurance company errors had gone disproportionately to the city treasury.
Roach, just before leaving office in December 2006, said Fiscal Court had recouped $600,000 and he expected the amount to increase to well over $1 million.
In February of this year, Fiscal Court had recovered more than $1 million, according to Debra Anderson, occupational tax coordinator for the county.
In 2005 the state Office of Insurance agreed to audit five insurance companies. Then Roach sent 331 letters to companies explaining the unfair division of tax money. He enclosed in each letter a computer disk with a listing of all property addresses located in the unincorporated part of Franklin County.
"Your obligation is to review the insurance premium tax payments for Frankfort and Franklin County for the past five years, make restitution for errors, and insure future premium tax payments are divided with the appropriate share being paid to Franklin County," Roach's letter said.
The claims made in the lawsuits give only Franklin County government's side of the case.
Defendants named in the lawsuit include:
>American International South Insurance Co., Harrisburg, Pa.
>AIG Casualty Co., Harrisburg, Pa.
>American General Assurance Co., Schaumburg, Ill.
>American General Life Insurance Co., Houston, Texas.
>American General Life & Accident Insurance Co., Nashville, Tenn.
>Commerce & Industry Insurance Co., New York, N.Y.
>Granite State Insurance Co., Harrisburg, Pa.
>Illinois National Insurance Co., Chicago.
>Insurance Co. of the State of Pennsylvania, Harrisburg, Pa.
>National Union Fire Insurance Co. of Pittsburgh, Harrisburg, Pa.
>New Hampshire Insurance Co., Harrisburg, Pa.
>United Guaranty Residential Insurance Co., Greensboro, N.C.
>Hartford Steam Boiler Inspection & Insurance Co., Hartford, Conn.
>Union Security Insurance Co., Des Moines, Iowa.
>American Bankers Insurance Co. of Florida, Miami.
>American Bankers Life Assurance Co. of Florida, Miami.
>American Memorial Life Insurance Co., Rapid City, S.D.
>American Security Insurance Co., Wilmington, Del.
>American Reliable Insurance Co., Scottsdale, Ariz.
>Liberty Mutual Fire Insurance Co., Wausau, Wis.
>American Fire & Casualty Insurance Co., Fairfield, Ohio.
>LM Insurance Co., West Des Moines, Iowa.
>Indiana Insurance Co., Indianapolis.
>Liberty Mutual Insurance Co., Boston.
>Netherlands Insurance Co., Keene, N.H.
>Ohio Casualty Insurance Co., Fairfield, Ohio.
>West American Insurance Co., Indianapolis.
>Wausau Underwriters Insurance Co., Wausau, Wis.
>Nationwide Mutual Insurance Co., Columbus, Ohio.
>Nationwide Mutual Fire Insurance Co., Columbus, Ohio.
>Nationwide General Insurance Co., Columbus, Ohio.
>Owners Insurance Co., Lima, Ohio.
>Auto-Owners Insurance Co., Lansing, Mich.
>Progressive Casualty Insurance Co., Cleveland, Ohio.
>Progressive Direct Insurance Co., Cleveland.
>Progressive Northern Insurance Co., Cleveland.
>Shelter General Insurance Co., Columbia, Mo.
>Shelter Life Insurance Co., Columbia, Mo.
>Shelter Mutual Insurance Co., Columbia, Mo.
>State Auto Property & Casualty Insurance Co., West Des Moines, Iowa.
>State Automobile Mutual Insurance Co., Columbus, Ohio.
>State Farm Fire & Casualty Co., Bloomington, Ill.
>State Farm Life Insurance Co., Bloomington, Ill.
>State Farm Mutual Automobile Insurance Co., Bloomington, Ill.
>Travelers Property Casualty Insurance Co. of America, Hartford, Conn.
>Charter Oak Insurance Co., Hartford, Conn.
>Northland Insurance Co., St. Paul, Minn.
>Phoenix Insurance Co., Hartford, Conn.
>St. Paul Fire & Marine Insurance Co., St. Paul, Minn.
>Standard Fire Insurance Co., Hartford, Conn.
>Travelers Casualty & Surety Co., Hartford, Conn.
>Travelers Casualty & Surety Co. of America, Hartford, Conn.
>Travelers Home & Marine Insurance Co., Hartford, Conn.
>Travelers Indemnity Co., Hartford, Conn.
>Travelers Indemnity Co. of America, Hartford, Conn.
>Travelers Property Casualty Insurance Co., Hartford, Conn.
>Cincinnati Insurance Co., Fairfield, Ohio.
>Cincinnati Life Insurance Co., Fairfield, Ohio.
>Geico Indemnity Co., Chevy Chase, Md.
>Geico General Insurance Co., Chevy Chase, Md.
>Grange Mutual Casualty Co., Columbus, Ohio.
>Trustgard Insurance Co., Columbus, Ohio.
>Hartford Casualty Insurance Co., Indianapolis.
>Hartford Fire Insurance Co., Hartford, Conn.
>Hartford Insurance Co. of the Midwest, Indianapolis.
>Hartford Life and Accident Insurance Co., Hartford, Conn.
>Hartford Underwriters Insurance Co., Hartford, Conn.
>Property and Casualty Insurance Co. of Hartford, Indianapolis.
In other business Friday, Fiscal Court:
>Awarded a contract to E & H Bridge and Grating Inc., Bedford, Ind., to replace a bridge over Taylor Branch on Taylor Branch Road. It was the lower of two bids received " $53,944. The higher bid was $54,720.
County Road Superintendent said it will be a metal bridge and construction should begin in a month.
>Unanimously approved rezoning 20.5 acres at 100 Old Georgetown Road from Rural Residential to Agricultural. Michael and Andrea Mueller requested the zone change for a family home, farming and a nursery landscape business.
In May the county planning office recommended approving the rezoning and the Frankfort/Franklin County Planning Commission voted unanimously to approve it.
>Held the first reading of an ordinance to rezone 3.5 acres at 1437 Louisville Road from Rural Residential to Highway Commercial. The Stewart Miller Estate requested the change.
>Held the first reading of an ordinance to rezone 1.8 acres at 4241 U.S. 127 south from Rural Residential to Industrial Commercial.
Mary Belle Dailey, owner of the property, requested the change so her grandson, Jon Dailey, can expand a welding shop " that preceded zoning laws " and move it to another part of the farm.
>Voted to hire Laura Thompson as a crime victim's advocate for the commonwealth attorney's office.
>Voted to hire James Bowen as a county firefighter. He replaces Roger Peach, who resigned.
>Approved Judge-Executive Ted Collins' appointment of Joyce Honaker to a four-year term on the Frankfort/Franklin County Planning Commission. She will replace Darrell Sanderson whose term ended June 30.