PROCEDURES
FOR OBTAINING “RECOGNITION”
AS A SURPLUS LINES INSURER IN UTAH
Subsection
31A-15-103(6)(b), Utah code, outlines the requirements for inclusion on the Utah
Insurance Commissioner’s “recognized” list of unauthorized insurers. The
Department has prepared an application packet which lists the documents required
and provides the forms that must be completed by the applicant. Among the items
required are the following:
1-
Application fee of $1,002 paid to the Utah Insurance
Department.
2-
E-Commerce fee of $50 paid to the Utah Insurance
Department.
3-
A letter addressed to the Commissioner requesting to be on
the list.
4-
Must complete the Utah Insurance Department Unauthorized
(surplus lines) Insurer application information
form.
5-
Documentation establishing satisfactory evidence of good
reputation, and financial integrity. The
Following are required:
a- A minimum of 3 year’s business experience;
b- Most recent financial Examination by the company’s
state of domicile;
c- Biographical affidavits of the company’s directors and
officers;
d-
Certification that no states have taken regulatory
action against the company. If regulatory action
has
been taken, a letter of explanation must be
provided.
e-
In the case of alien insurers it is required that the
company be listed on the roster of the
Non-Admitted
Insurers Information Office of the National
Association
of Insurance Commissioners.
6-
A certified copy of the company’s current annual statement. This statement
must have been filed with the insurance regulatory authority in the state of
domicile and certified by the insurer. If an alien insurer, a certified copy of
its most current financial statement.
7- Evidence of a Policyholder Trust Fund/Statutory Deposit,
showing:
a-
that
the company maintains in the United States an irrevocable trust fund in either a
national bank or a member of the Federal Reserve system, in an amount not less
that $2,500,000 for the protection of all its policyholders in the United
States, which trust fund must consist of substantially the same character as
qualified assets; OR
b-
Certificate
of Deposit showing the company maintains a deposit meeting the statutory deposit
requirements of insurers in the state where it is made, which deposit shall be
in an amount not less that $2,500,000 for the protection of all policyholders in
the United States; OR
c-
in
the case of any “Lloyd’s” or other similar incorporated or unincorporated
group of alien individual insurers, show that it maintains a trust fund of not
less than $50,000,000 as security to its full amount for all policyholders and
creditors in the United States of each member of the group, which trust fund
must consist of substantially the same character as qualified assets.
AS
APPLICATIONS MAY TAKE SOME TIME TO PROCESS, THE APPLICANT IS RESPONSIBLE TO
MAINTAIN CURRENT INFORMATION – INCLUDING SUBMITTING QUARTERLY STATEMENTS,
CHANGES IN DIRECTORS AND OFFICERS, UPDATED ACCOUNTING OR EXAMINATION REPORTS AND
ALL OTHER PERTINENT INFORMATION. FAILURE TO MAINTAIN CURRENT INFORMATION WILL
NULLIFY THE APPLICATION.
Applications
should be submitted to:
The Utah Insurance Department
3110 State Office Building
Salt Lake City, Utah 84114
Attn: Beth Crim
Phone (801)538-3812
Each
applicant should obtain a copy of the Manual of The Surplus Line Association of
Utah. This manual contains the laws and rules governing surplus line insurers
and brokers and outlines the procedures that must be followed in the writing of
excess and surplus line insurance within this state and for paying surplus lines
taxes. Please contact the Surplus line association to obtain this manual. There
will be an initial fee for the manual and processing.
The Surplus Line Association of Utah
6711 South 1300 East
Salt Lake City, UT 84121
PH.# 944-0114
