When you run across insurance policies with inaccurate or even missing postal addresses – calculating municipal taxes or pricing policy is difficult to say the least. On top of that, you have to assign state tax jurisdictions, look up correct municipal tax rates for underwriting, and perform municipal tax audits – all with no room for error.
Using the SaaS model (Software as a Service) and compliant with the Kentucky HB 524 Insurance Premium Tax Reform, you can use Risk Location to collect information on all of your municipal taxes, state fees, state contacts, filing due dates, and taxing jurisdiction FIPS coding instantly via a browser, or Microsoft Excel add-in tool, or consume the service as part of your policy admin or underwriting systems.
Risk Location delivers tax codes, fee information, and rate information quickly and accurately via a single address lookup or batch-processing. Jurisdiction data returns ready to import into source systems for processing. Using Microsoft Excel and the add-in tool, users can look up addresses within municipal tax states to determine individual liabilities and applicable regulations.
Risk Location uses geocoding databases (municipal boundaries, police and fire districts, state-defined geographies, latitude, and longitude) to find precise locations to assign taxing jurisdictions, and (where applicable) to find municipal- and county-level rates by line of business. This means the correct municipal tax jurisdiction is assigned and the correct municipal tax due to the municipalities is calculated based on exact municipal tax district requirements.
With Risk Location jurisdiction information is updated quarterly with the latest annexation and tax law changes. Incomplete or inaccurate address records are recoded and (where allowed by states) jurisdiction codes are applied according to zip-code frequencies determined from existing policy address records.
Because Risk Location, is available from the cloud, there is no infrastructure cost and no software updates. Operating costs and noncompliance penalties are reduced because you continually have the latest data to process.
With Risk Location, pricing policies and determining tax jurisdictions is simply and sensibly better.