Frequently Asked Questions

The new and exciting InsCipher Broker Portal, effective October 5, 2020, improves and expedites the e-policy filing management process, generates accurate reports and data and provides real-time data analysis for Idaho SL placements and transactions.

With built-in technology to automate compliance reviews, the InsCipher Broker Portal will also increase staff efficiencies; you will see the immediate status of your submission along with a detailed invoice. For more information about InsCipher, go to https://inscipher.com

Idaho law requires a broker to execute an approved affidavit with the Surplus Line Association of Idaho (Stamping Office) within 30 days of policy receipt by the licensed broker. Once you are registered to file in Idaho, submissions are made electronically through the InsCipher Agent Portal.

Each broker shall pay to the association a fee (invoiced monthly) for the review of surplus line transactions accepted during the month. Stamping fee is rounded to the nearest dollar (.50 & greater, up - .49 and less, down).

  • Broker Fees, Policy Fees, Inspection Fees, Exam Fees, Audit Fees, and other like fees are deemed premium.
  • Endorsement stamping fees are calculated on the effective date of the originating policy.
  • Stamping Fees are fully earned and not returned unless the policy is canceled flat.
  • Reinstatements are subject to stamping fees.

The ANNUAL premium tax is currently 1.50% and is paid to the State of Idaho on surplus line coverages written by a broker using unauthorized eligible insurers. Surplus Line premium tax is the same rate of tax as imposed by law on the premiums of like coverages written by authorized insurers.

  • Electronic reporting of tax is MANDATORY. If no business is written for a calendar year, you must still file and report “0.” Penalty for late reporting is assessed at $25.00/day commencing April 1. Refer to the Annual SL Premium Tax Filing & Payment Procedures.
  • Premium and premium tax is rounded to the nearest dollar (.50 & greater, up - .49 and less, down). If the policy is a multi-state risk, premium tax and stamping fee is assessed only if Idaho is the home state as defined in 41-1213(7)(a).

All producers licensed as surplus lines brokers with the State of Idaho must become members of the SLA of Idaho: 41-1214(1). The orderly reporting of Surplus Line premium and tax is critical to the Department of Insurance. Click here to Register

An amended report of coverage must be filed with the association for each cancellation and each endorsement which changes the named insured, the description or location of the subject of insurance, or the coverage, conditions, terms, premium or participating insurers. If an endorsement does not modify the policy as referenced above, and does not include additional or return premium, do NOT file. An endorsement must be filed within 30 days of receipt (of the policy change).

Yes. The approved affidavit is an electronic form submitted through this website via InsCipher.

All Fees charged in addition to premium must be shown as separate items on the certificate (policy face) and disclosed separately from the premium in any statement to the insured. All fees are deemed premium and subject to tax and stamping fee. Endorsements are treated in like manner.

Excess liability insurance and umbrella liability insurance are both used to provide limits of insurance in addition to those in an insured's primary and underlying liability policies. An excess liability policy is one that provides limits of insurance in excess of an underlying policy or policies or in excess of a stated dollar amount (often called the 'retention'). The excess policy may be a self-contained policy subject only to its own terms, but it can also 'follow form' (duplicate the underlying terms).

Regulation states that the broker's affidavit must be filed with a copy of the broker's cover note, declaration page or certificate. Such a certificate or endorsement must show the description and location of the subject of the insurance, coverage, conditions and term of the insurance, the premium and taxes collected from the insured, the name and address of the insured and insurer and must include the broker's ENDORSEMENT OF CONTRACT Stamp.

  • If the broker anticipates a delay in receipt of the declaration page/policy, broker may file a BINDER with the stamping office, and subsequently file the authorized policy documents when received. Binder must include all the usual terms and supplemental information required in the policy filing.

An Admitted Insurer is an insurer holding a Certificate of Authority to transact the business of insurance in Idaho. Admitted carriers provide limited protection - in the event of insolvency - to their insureds through the Guaranty Fund. The Guaranty Fund is not available to Surplus Line risks.

Eligible "White List" Insurers consist of insurance companies that have made application to the Idaho Insurance Director, met certain legal and financial requirements, and, although they do not hold a Certificate of Authority in the state, they have qualified to write only Surplus Line insurance in this state. Select this link to view eligible Surplus Line insurers in Idaho.

Ineligible Insurers are insurers who do NOT hold a Certificate of Authority to transact the business of insurance and they are NOT qualified to write surplus lines in this state.

Yes. Every contract procured and delivered as a surplus line coverage must be countersigned by the broker who procured it, and must have conspicuously stamped upon it in RED ink with at least 10 pt BOLD print the verbiage below. Alternatively, the text may be in BLACK ink with at least 12 pt BOLD print.

 

EXAMPLES:

 

THIS SURPLUS LINE CONTRACT IS ISSUED PURSUANT TO THE IDAHO INSURANCE LAWS BY AN INSURER NOT LICENSED BY THE IDAHO DEPARTMENT OF INSURANCE. THERE IS NO COVERAGE PROVIDED FOR SURPLUS LINE INSURANCE BY EITHER THE IDAHO INSURANCE GUARANTY ASSOCIATION OR BY THE IDAHO LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION. ________________________ (Name of Broker) Please include the SL broker Idaho license No. on the policy document for identification

 

THIS SURPLUS LINE CONTRACT IS ISSUED PURSUANT TO THE IDAHO INSURANCE LAWS BY AN INSURER NOT LICENSED BY THE IDAHO DEPARTMENT OF INSURANCE. THERE IS NO COVERAGE PROVIDED FOR SURPLUS LINE INSURANCE BY EITHER THE IDAHO INSURANCE GUARANTY ASSOCIATION OR BY THE IDAHO LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION. ________________________ (Name of Broker) Please include the SL broker Idaho license No. on the policy document for identification

The Director of Insurance may impose an administrative penalty not to exceed $15,000.00 upon any insurer who transacts - or attempts to transact - insurance as a S/L insurer in violation of any provision of Chapter 12, title 41.

Surplus Line Brokers in violation of any section are subject to general penalty as provided by Title 41 and are subject to suspension or revocation of all insurance licenses.

The original report and premium tax payment must be transmitted electronically by the licensed Broker to the Idaho Insurance Department through TriTech Software, which can be found here.

Your Annual Premium Total must match exactly what has been processed and totaled by the SLA stamping office. If you had no transactions for the calendar year, simply enter Zero.

Tax payment is made in full annually on or before March 1. A $25.00 per day penalty is assessed by the Department of Insurance commencing April 1 for late payments and reporting - including reports of "0" transactions. Refer to the ANNUAL SL PREMIUM TAX & PAYMENT document for more detail.

Premium and premium tax is rounded to the nearest dollar (.50 & greater, up - .49 and less, down).

The Idaho licensed Surplus Line Broker procuring the insurance should execute the filing. If procured by a general lines producer, the producer must hold an Idaho resident or non-resident PC license but cannot file the transaction. All filings must be made through licensed Surplus Line brokers.

Idaho law provides that all Surplus Line transactions are to take place through licensed S/L brokers. If a sophisticated buyer of insurance accesses the S/L market directly - without the service of any licensed producer or S/L broker - then that insured is Independently Procuring insurance. The IP insured is subject to certain filing and taxation requirements. Click here for proper forms and instructions.