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PROCEDURES FOR OBTAINING "RECOGNITION" AS A SURPLUS LINES INSURER IN UTAH

 

Subsection 31A-15-103(6)(e), 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. Complete the Surplus Lines Insurer Application Checklist

  2. Payment of $1,075 fee ($1,000 Application and $75 E-Commerce) to the Utah Department of Insurance.

  3. Submit a letter addressed to the Commissioner requesting to be on the list

  4. Complete the Utah Department of Insurance Unauthorized (surplus lines) Inssurer Application Information Form.

  5. Submission of documentation establishing satisfactory evidence of good reputation and financial integrity. The following are required:

    a- A minimum of three years business experience.

    b- Most recent financial examination by the company’s state of domicile.

    c- NAIC UCAA Biographical Affidavits of the company’s directors and key 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 -Alien insurers must submit evidence that they are listed in the roster of the Non-Admitted Insurers Office of the National Association of Insurance Commissioners


  6. A certified copy of the company’ current annual statement that was filed with the insurance regulatory authority in the state of domicile. If an alien insurer, a certified copy of its most current financial statement.

  7. Evidence of compliance with the Risk-Based Capital Requirements of the National Association of Insurance Commissioners or Capital and Surplus of at least $15,000,000, whichever is greater.

  8. Evidence of a Policyholder Trust Fund/Statutory Deposit showing:

    a- the company maintains in the United States an irrevocable trust fund in national bank or a member of the Federal Reserve system, in am amount of at least $2,500,000 for the protection of all 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 of at least $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 at least $50,000,000 as security to itss 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.

THE APPLICANT IS RESPONSIBLE TO ASSURE ALL INFORMATION REMAINS CURRENT WHILE THE APPLICATION IS UNDER REVIEW.

Applications should be submitted to:

The State of Utah Insurance Department
3110 State Office Building
Salt Lake City, Utah 84114
Attn: Beth Crim
Phone 801-538-3812
bcrim@utah.gov

Applicants should obtain a copy of the Manual of The Surplus Lines 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 the manual, for which aa initial fee for the manual and processing is charged.

The Surplus Line Association of Utah
1245 East Brickyard Road, Suite 60
Salt Lake City, Utah 84106
Phone 801-467-8421