Surplus Lines Premium Tax and Filing Guidance

THE GREAT SEAL OF THE STATE OF UTAH 1896 State of Utah GARY R. HERBERT Governor SPENCER COX Lieutenant Governor Insurance Department TODD E. KISER Insurance Commissioner # BULLETIN 2016-3 TO: Surplus Lines Insurance Professionals FROM: Todd E. Kiser, Utah Insurance Commissioner DATE: August 31, 2016 # SUBJECT: Premium Tax and Filing Guidance After September 30, 2016 for Non-admitted Insurance Contracts Where Utah is the Home State This Bulletin provides guidance on premium tax payment and filing after September 30, 2016, when the Non-Admitted Insurance Multi-State Association Inc. (“NIMA”) begins its wind down. On April 28, 2016 NIMA members voted unanimously to dissolve and wind down the NIMA Corporation with a one year run off period beginning October 1, 2016. Consequently, September 30, 2016 is the last day to report new nonadmitted multi-state contracts and pay premium tax on those contracts to the NIMA Clearinghouse. After September 30, 2016, all Utah nonadmitted single state contracts and all nonadmitted multi-state contracts where Utah is the home state must be paid and reported through the Surplus Lines Association of Utah (“SLAUT”) (www.slaut.org) and 100% of the risk shall be taxed at the Utah surplus lines premium tax rate of 4.25% and assessed the Utah stamping fee of .0015%. Policy endorsements and cancellations on contracts previously filed with the NIMA Clearinghouse must continue to be reported to the NIMA Clearinghouse through the coverage date of the contract or renewal. September 30, 2017 is the last day any multi-state filing will be accepted by the NIMA Clearinghouse. It is anticipated that NIMA will be completely dissolved by December 2017. DATED this 31st day of August, 2016. Todd E. Kiser Insurance Commissioner State Office Building Suite 3110, Salt Lake City, UT 84114-6901 ♦ (801) 538-3800 ♦ Facsimile (801) 538-3829 ♦ www.insurance.utah.gov