Excess and Surplus Lines Insurance

• Procedure to be added to the "Recognized List"
  • New Company Application
  • New Company Procedures
• The Surplus Lines Market
• Frequently Asked Questions
• Statutes and Regulatory Rules Applicable to Surplus Lines
• Submission Procedures
• Utah "Recognized List" of Surplus Lines Insurers
• Utah "Export List" of coverages and classes eligible for export to the E&S market
• 2006 Surplus Lines Utah Premium

The Excess and Surplus Lines Market

The excess and surplus lines market, hereafter referred to as surplus lines, is a supplemental market of insurance companies that do not have a certificate of authority to write insurance in Utah. These insurers do not "do business" in Utah. Laws and regulations provide a mechanism to control the surplus lines brokers' "export" of business to recognized non-admitted insurers. Though specifics may differ, there is a consistency in the basic framework of surplus lines laws throughout the various states. The prohibition against soliciting business on behalf of non-admitted insurers is universal, as well as the requirement that there be a diligent, good faith effort to place the insurance with an admitted insurer. Documentation and justification of the surplus lines placement is always required. Restrictions on using surplus lines for the purpose of price advantage and restrictions on exporting different layers or segments of a risk are common. Several states use an export list of insurance coverages and classes. Some states have exemptions for larger insureds. Utah surplus lines rules and procedures are consistent with most other states in these areas.

Frequently Asked Questions

What is your surplus lines tax rate?

4.25% of gross premiums less return premiums due to cancellations or premium reductions. Gross premiums include all policy fees. Gross premiums do not include separately negotiated broker fees that are not listed on the policy.

Is there a stamping fee?

Yes. The stamping fee is 1/4 of 1% (.0025) of the gross premiums less return premiums due to cancellations or premium reductions. Gross premiums include all policy fees. Gross premiums do not include separately negotiated broker fees that are not listed on the policy.

Do you have a stamping office?

The Surplus Line Association of Utah acts as the stamping office for the Utah Insurance Commissioner. All submissions of surplus lines policies should be sent to the Surplus Line Association of Utah within 60 days of the effective date of the coverage. The broker will then be billed. Contact the Surplus Line Association for further instructions.

The Surplus Line Association of Utah
6711 South 1300 East
Salt Lake City, UT 84121
Ph. (801) 944-0114
Fax (801) 944-0116
Web Site:  http://www.slaut.org

Can non-residents obtain a surplus lines brokers license?

Yes, Utah has a non-resident surplus lines broker's license. Contact our Producer Licensing Division.

Statutes and Regulatory Rules Applicable to Surplus Lines

Current statutes and regulations are as follows:

    Statutory Provisions

Title 31A Chapter 15, Utah Code

    Regulatory Rules

Procedures for Surplus Lines Placement Rule R590-171
Surplus Lines Insurance Premiums Tax and Stamping Fee  
           Rule R590-157

Submission Procedures

All surplus lines transactions on risks with Utah exposures must be submitted to the Surplus Line Association of Utah for examination for compliance with Utah laws and rules and for collection of the Utah surplus lines premium tax.

The Surplus Line Association of Utah
6711 South 1300 East
Salt Lake City, UT 84121
Ph  (801) 944-0114
Fax (801) 944-0116
Web Site:  http://www.slaut.org

Submissions must include the applicable submission form(s) and a complete copy of the policy, certificate or endorsement(s). Submissions must be made within 60 days of the effective date of the transaction. If submissions are not made within this time-frame, a penalty will be assessed. (If the policy is not available within 60 days a binder with full specifics of the coverage must be submitted.)

Surplus Lines submission forms may be obtained by clicking on the following link to the Surplus Line Association http://www.slaut.org/forms/form_indx.htm.

Surplus Lines Utah Premium