Tuesday, April 10, 2007

Utah: Courtesy filing fee not part of surplus lines premium

The Utah Insurance Commissioner has proposed a rule change requiring that a courtesy filing fee should not be included as surplus lines premium for the purpose of computing taxes and stamping fees paid to the Surplus Lines Association of Utah.

Comments on the proposed change are due May 1 and the rule may become effective May 8.

A courtesy filing is defined as 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. The "Courtesy filing fee" is defined as a fee charged by the resident surplus lines producer for doing the courtesy filing.

Surplus lines premium tax for Utah is 4.25% of gross surplus lines premiums, less 4.25% of return premiums paid to insureds by reason of policy cancellations or premium reductions. The surplus lines stamping fee is 0.25% of the policy premium payable.

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