No, Utah does not require any annual or quarterly reports. You are to file all business written with the Surplus Line Association of Utah within 60 days of the effective date of the policy. Monthly statements will be emailed and payments must be received by the 25th of each month.

In Utah, the Insurance Department and the Surplus Line Association work closely together. The Utah Insurance Code specifically provides for a surplus lines advisory organization. The commissioner has designated the Surplus Line Association of Utah as the advisory organization and has authorized it to review surplus lines submissions, assess a stamping fee, and collect the surplus lines premium tax on behalf of the commissioner. The Surplus Line Association of Utah assists the Utah Insurance Commissioner in facilitating and encouraging compliance by its members with the laws of Utah and the rules of the commissioner concerning surplus lines. The Association also advises the Commissioner concerning various aspects of the surplus lines market.

Because the activities of the Association are important to the commissioner’s oversight of the surplus lines market, the commissioner has ruled that each surplus lines producer must be a member of the Association. The Association regularly communicates with its members and serves as a major means of exchange between the Insurance Department and licensed surplus lines producers.

Utah law requires that each surplus lines transaction in this state be examined to determine whether it complies with the surplus lines tax, solicitation and placement, and disclosure requirements of the law. The responsibility for this review has been delegated by the Insurance Commissioner to the Surplus Line Association of Utah through a contractual arrangement.

The surplus lines producer, having concluded that the risk appears to be proper for placement, makes a filing with the Association. This filing includes a copy of the policy and is accompanied by a submission form. If a copy of the policy is not available, a certificate, cover note, or other confirmation of insurance should be submitted within sixty (60) days of the date the policy was first effective.

The following statement must be affixed to all surplus lines policies: “The insurer issuing this policy does not hold a certificate of authority to do business in this state and thus is not fully subject to regulation by the Utah Insurance Commissioner. This policy receives no protection from any of the guaranty associations created under Chapter 28, Title 31A.”

Submissions will be examined to ascertain whether they comply with the Utah law, the Commissioner’s rules, and the Association’s requirements. Unless the Association office notifies the surplus lines producer that the filing is incomplete, the placement then stands as being in compliance with the law for the term of the policy. Submissions which do not appear to be in compliance will be submitted in synopsis form to the Board of Directors. If it is the conclusion of the Directors that the placement is in violation, the surplus lines producer will be notified and told what action must be taken. If the producer wishes to appeal the Board’s decision, he/she is entitled to meet with the Board of Directors in order to discuss the matter further.

Monthly statements will be emailed to all surplus line offices. This will be an itemized statement showing the business filed during the preceding month. Taxes and fees will be indicated. The surplus lines producer is responsible for payment of the taxes and fees to the Surplus Line Association within the time specified.

All insurance premiums written in Utah are assessed a premium tax. These premium taxes go into the state general fund. Admitted insurance companies deduct the tax from the premiums they collect and pay it directly to the Utah Tax Commission. Most insurance buyers do not realize that the premium they pay for their insurance policy includes a state tax. Because surplus lines insurance companies are not directly regulated, the tax must be collected directly from the insured.

Utah law makes the insurer, all producers involved in the transaction, and the policyholder jointly and severally liable for the payment of the surplus lines tax. However, in practice, it’s the responsibility of the surplus lines producer to make sure that the surplus lines tax is calculated correctly and paid by the insured. It is unlawful for the producer to pay the tax for the insured. The surplus lines producer is responsible for remitting the tax to the Surplus Line Association, which then remits it to the Insurance Department.

The Utah surplus lines tax rate is currently 4.25% of all premium and fees, except the stamping fee. Utah law also requires that a penalty be assessed if the tax is not paid in accordance with the deadlines in the commissioner’s rule. The penalty is 25% of the tax due, plus 1-1/2% per month from the time of default until full payment of the tax.

The Utah Insurance Department and the Surplus Line Association of Utah work closely together. The Utah Insurance Code specifically provides for a surplus lines advisory organization. The commissioner has designated the Surplus Line Association of Utah as the advisory organization and has authorized it to review surplus lines submissions, assess a stamping fee (.18 of 1%), and collect the surplus lines premium tax on behalf of the commissioner. A late surplus line stamping fee payment may be subject to late fees of:

(a) 25% of the stamping fee due.
(b) 1.5% per month from the time of default until the stamping fee is paid in full; and
(c) a minimum of $10 if the amounts in Subsections (2)(a) and (2)(b) total less than $10.

The Surplus Line Association of Utah assists the Utah Insurance Commissioner in facilitating and encouraging compliance from its members with the laws of Utah and the rules of the commissioner concerning surplus lines. The Association also advises the Commissioner concerning various aspects of the surplus lines market.

Because the activities of the Association are important to the commissioner’s oversight of the surplus lines market, the commissioner has ruled that each surplus lines producer must be a member of the Association. The Association regularly communicates with its members and serves as a major means of exchange between the Insurance Department and licensed surplus lines producers.

All Utah risk purchasing group surplus line filings & documents must be submitted through our new automated online filing system. Payments for taxes and fees may be submitted through the online system or by mail.

The SLA of Utah Filing Portal is built and managed by InsCipher, LLC. You can register to file here. Benefits of the Online Filing System include:

• Comprehensive compliance & error notifications
• 24/7 online access to your filing information
• Submit multiple filings at once
• Easy electronic payment portal
• Step-by-step submission guidance
• Automated surplus line tax calculator
• Instant document batch uploads & downloads

Payments for taxes and fees may be submitted through the online system or by mail.

If you prefer to submit payment by mail, please send check for the tax and fee to:The Surplus Line Association of Utah
6711 South 1300 East
Salt Lake City, UT 84106