R590. Insurance, Administration.R590-157. Surplus Lines Insurance Premium Tax and Stamping Fee.
R590-157-1. Authority.
This rule is promulgated by the commissioner pursuant to Sections 31A-3-303, and 31A-15-103.
R590-157-2. Purpose and Scope.
(1) The purpose of this rule is to prescribe:
(a) the amount of the stamping fee;
(b) the accounting and reporting forms and procedures to be used in calculating the surplus lines premium tax and the stamping fee; and
(c) the entities authorized to examine a surplus lines transaction and collect and receive the surplus lines premium tax and the stamping fee.
(2) This rule applies to:
(a) a surplus lines insurer, a surplus lines producer, and a policyholder required to pay a premium tax and stamping fee;
(b) the advisory organization authorized to examine surplus lines transactions; and
(c) the commissioner's authorized agent responsible for:
(i) collecting the stamping fee and premium tax; and
(ii) remitting the premium tax to the commissioner.
R590-157-3. Definitions.
Terms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:
(1) "Courtesy filing" means a surplus lines policy filing done by a resident surplus lines producer on behalf of a resident or non-resident producer whose licensure does not include a surplus lines line of authority.
(2) "Courtesy filing fee" means a fee charged by a resident surplus lines producer for a courtesy filing.
(3) "Stamping fee" means a percentage of policy premium payable for the examination of a surplus lines transaction as required under Subsection 31A-15-103(11).
(4) "Surplus Line Association" or "Association" means the Surplus Line Association of Utah.
(5) "Surplus lines producer" means a person licensed under Subsection 31A-23a-106(1)(i) to place insurance with eligible unauthorized insurers pursuant to Section 31A-15-103.
(6) "Surplus lines insurer" means an unauthorized foreign or alien insurer that is:
(a) subject to Section 31A-15-103;
(b) doing business in this state through surplus lines producers; and
(c) included on the commissioner's recognized list of surplus lines insurers.
(7) "Surplus lines premium" means the monetary consideration for an insurance policy procured from an unauthorized insurer, and includes policy fees, membership fees, required contributions, or monetary consideration, however designated.
(8) "Surplus lines transaction" means:
(a) the placement of an insurance policy or certificate of insurance with a surplus lines insurer; and
(b) any cancellation, endorsement, audit, or other adjustment to a surplus lines insurance policy that affects the premium.
R590-157-4. Stamping Fee Amounts.
(1) Pursuant to Subsection 31A-15-103(11)(d), the stamping fee for the examination of a surplus lines transaction is 0.18% of the policy premium payable.
(2) A late surplus lines 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.
(3) A courtesy filing fee may not be included as a surplus lines premium when computing premium taxes and stamping fees.
R590-157-5. Authorized Agency.
(1) The commissioner authorizes the Surplus Line Association to act as the commissioner's agent for:
(a) collecting and remitting the premium tax imposed under Section 31A-3-301 on an insurance transaction subject to Sections 31A-15-103, 31A-15-104, and 31A-15-106;
(b) examining surplus lines transactions under Section 31A-15-111;
(c) collecting the stamping fee authorized under Subsection 31A-15-103(11); and
(d) prescribing the forms and procedures that surplus lines producers may use.
(2) The Surplus Line Association shall remit all premium taxes it collects according to Section R590-157-6.
R590-157-6. Accounting Procedures.
(1) Within 60 days of the effective date of a surplus lines transaction, the surplus lines producer shall file with the Surplus Line Association:
