DraftIdaho Department of InsurancePolicy N/A

Surplus Line Rules

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Establishes procedures for placing and administering surplus line insurance in Idaho, including broker licensing, diligent search, documentation, taxes, stamping fees, reporting, recordkeeping, and insurer eligibility.

Policy Summary

PayerIdaho Department of Insurance

PolicySurplus Line Rules

Policy CodePolicy N/A

Change TypeNo material change

Effective DateN/A

Next Review DateN/A

Key ActionBrokers must conduct a diligent search before placing surplus line business.

SourceLink

POLICY UPDATE CHANGES

No material clinical or coverage changes in this revision.

2 yearsBroker license renewal cycle

March 1Annual report and premium tax payment deadline

30 daysSubmission deadline

5 yearsBroker record retention period

30 daysStamping fee delinquency threshold

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DraftIdaho Department of InsurancePolicy N/A

Surplus Line Rules

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Sign up for all Idaho Department of Insurance policy alerts

Know when Idaho Department of Insurance releases new policies or updates existing guidance.

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Policy Summary

PayerIdaho Department of Insurance

PolicySurplus Line Rules

Policy CodePolicy N/A

Change TypeNo material change

Effective DateN/A

Next Review DateN/A

Key ActionBrokers must conduct a diligent search before placing surplus line business.

SourceLink

POLICY UPDATE CHANGES

No material clinical or coverage changes in this revision.

2 yearsBroker license renewal cycle

March 1Annual report and premium tax payment deadline

30 daysSubmission deadline

5 yearsBroker record retention period

30 daysStamping fee delinquency threshold

Eligibility, Placement, and Financial Requirements

Eligibility and placement requirements

Surplus line placement is permitted only when all applicable licensing, search, submission, and insurer-eligibility requirements are satisfied.

ALL of the following

The broker holds an Idaho resident or non-resident broker license before soliciting surplus line business.
All surplus line business is placed through a licensed broker.
Each producer of surplus line business holds an Idaho resident or non-resident producer license.
A diligent search is completed by submitting the risk to at least one authorized company engaged in writing the type of coverage sought in Idaho, or, if no such company exists, to at least one company the broker or producer reasonably believes is most likely to accept the risk.
All affidavits, submissions, certificates, endorsements, and other documents are received by the delegated contractor within 30 days after the broker receives the applicable certificate, endorsement, or other policy document.Within 30 days
ONE of
- The risk appears on the Director's approved list of Open Lines for Export.
- ALL of the following
  - The risk does not appear on the Director's approved Open Lines for Export list.
  - The broker files the normal submission forms and documents and executes the broker's affidavit.
The surplus line business is placed only with an unauthorized insurer on the Director's current approved list of insurers eligible to write surplus line business in Idaho.

Tax and stamping fee requirements

Brokers must collect, report, and remit applicable Idaho premium taxes and stamping fees in accordance with the rule.

ALL of the following

Idaho premium tax is collected from the insured; policy fees, service fees, and other like fees are treated as part of the premium and are subject to premium tax.
Premium tax is paid to the Department on business written during the preceding calendar year on or before March 1 of each year.On or before March 1
Stamping fees are charged on all premiums and policy fees written on Idaho business at the rate established by the delegated contractor and approved by the Department.
The delegated contractor submits an invoice summarizing the premium, Idaho tax, and stamping fee for each submission processed within 10 days following the month in which the surplus line insurance was handled through the delegated contractor.Within 10 days after the applicable month

Reporting and recordkeeping requirements

Brokers must meet annual reporting and record-retention obligations.

ALL of the following

An annual report of surplus line business transacted during the preceding calendar year is filed with the Director on an approved form by March 1 of each year.By March 1 of each year
A full and true record of each surplus line coverage procured is maintained by the broker.
Reports of documents processed by the delegated contractor, together with the broker's copies of policies and endorsements, are retained for five years and made available for examination by the Director.5 years

Deadlines, Cycles, and Retention Periods

Reporting deadline

Annual report deadlineMarch 1 of each year

Tax payment deadline

Premium tax payment deadlineOn or before March 1 for business written during the preceding calendar year

Tax summary deadline

Delegated contractor tax summary deadlineFebruary 1 of each year

Invoice deadline

Delegated contractor invoice deadline

Broker and Producer Obligations

Documentation Required

Diligent Search Required

Before placing surplus line coverage, the Broker or referring insurance producer must submit the risk to at least one authorized company engaged in writing the type of coverage sought in Idaho. If no such company writes the coverage, submit the risk to at least one company that, in the Broker’s or producer’s professional judgment, is most likely to accept it.

Denial Risk

Broker License Required Before Solicitation

A Broker must hold an Idaho resident or non-resident Broker license before soliciting surplus line business. The license must be renewed every two years, and the Broker must notify the Department’s Licensing Division if the license will not be renewed by the renewal date.

Key Terms

Definitions

Open Lines for ExportThe class or classes of business that the Director has declared eligible for export under Section 41-1216, Idaho Code.

Definitions

Lines Other Than Open Lines for ExportClasses of business not included on the open-lines-for-export list that are to be offered to eligible surplus lines insurers under Title 41, Chapter 12, Idaho Code.

Definitions

Diligent SearchA broker or referring insurance producer satisfies the diligent-search obligation by submitting a risk to at least one authorized Idaho company writing the type of coverage sought, or, if no such company exists, to at least one company the broker or producer professionally judges most likely to accept the risk.

Policy Summary

PayerIdaho Department of Insurance

PolicySurplus Line Rules

Policy CodePolicy N/A

Change TypeNo material change

Effective DateN/A

Next Review DateN/A

Key ActionBrokers must conduct a diligent search before placing surplus line business.

SourceLink

On This Page

The stamping fee is paid upon receipt of billing and is not delinquent unless unpaid within 30 days after the last day of the month in which the business was reported.Within 30 days after the last day of the reporting month

Premium taxes and stamping fees are reported in increments of not less than one year.Not less than one year

Within 10 days after the month in which the business was handled through the delegated contractor

Stamping fee payment

Stamping fee delinquency thresholdUnpaid more than 30 days after the last day of the month in which the business was reported

Reporting increment

Tax and stamping fee reporting incrementNot less than one year

Document submission

Submission periodWithin 30 days after broker receipt of the certificate, endorsement, or other policy document

Recordkeeping

Record retention period5 years

License renewal

Broker license renewal cycleEvery 2 years

Late license continuation

Late license continuation periodWithin 1 year after the renewal date, subject to a continuation fee twice the amount prescribed by Idaho Code

Billing Rule

Use Licensed Brokers and Producers

Place all surplus line business through a licensed Broker. Each producer of surplus line business must hold an Idaho resident or non-resident producer license.

Documentation Required

Submit Placement Documents Within 30 Days

Ensure all required placement documents are received by the delegated contractor within 30 days after the Broker receives the applicable certificate, endorsement, or other policy document. If a complete submission cannot be made within 30 days, forward the available information with the submission form and affidavit, if applicable; the Broker remains responsible for timely compliance.

Documentation Required

File Risks Outside Open Lines

For a risk that does not appear on the Director’s approved list of open lines for export, file the normal submission forms and documents and execute the Broker’s affidavit.

Denial Risk

Use Approved Surplus Line Insurers

Place surplus line business only with unauthorized insurers on the Director’s current approved list of eligible insurers. Monitor additions and changes communicated by the delegated contractor before placing coverage.

Billing Rule

Purchasing Groups Must Use an Idaho-Licensed Broker

A purchasing group obtaining insurance from an authorized or unauthorized surplus lines insurer must use an Idaho-licensed Broker. The Broker is responsible for collecting and submitting all taxes and fees required by the chapter.

Documentation Required

Maintain Broker Records for Five Years

Maintain a full and true record of each surplus line coverage procured. Keep the delegated contractor’s monthly processing reports, Broker copies of policies and endorsements, and related records for five years; these records are subject to examination by the Director.

Delegated ContractorA contractor to whom the Director has delegated activities under Section 41-1232, Idaho Code.