Tax Rate
3.00%
Filing Frequency
Semiannual
Semi-annual filing due within 60 days after end of period. Period 1 (Jan 1-June 30) due August 15. Period 2 (July 1-Dec 31) due February 15. Industrial insureds file directly with DIFI using Form E-II.
Filing Method
Contact state for details
Format: Semi-annual statement to SLA (for brokers) or Form E-II to DIFI (for industrial insureds). Facsimile signature allowed on statement to SLA; maintain original notarized statement for 6 years.
Requirements
Arizona requires semi-annual filing within 60 days after end of period. Single-state risks: 3% tax + 0.20% stamping fee to Surplus Lines Association. Multi-state risks handled semi-annually. Due Aug 15 (for Jan 1-June 30) and Feb 15 (for July 1-Dec 31). Foreign insurers: broker must sponsor and file Forms E-700 (Sworn Statement), E-701 (Certificate of Public Supervisory Official), and SL Form 110 (for alien insurers). $15 million capital and surplus required. Alien insurers must be on NAIC Quarterly Listing. Industrial insured exemption available with qualified risk manager (Form E-II). Policy must contain conspicuous stamped/written notice in bold faced type about non-admitted status and no guaranty fund protection. Facsimile broker signature allowed on semi-annual statement (must maintain original notarized statement for 6 years). Export List maintained by SLA. No annual requalification of insurers required. Records kept 3 years minimum.
Filing Methods
- excel_upload
- online_portal
Filing Steps
- 13% tax on single-state risks
- 20.20% stamping fee to Surplus Lines Association of Arizona
- 3Semi-annual filing: Aug 15 (Jan-Jun) and Feb 15 (Jul-Dec)
- 4File with SLA (brokers) or DIFI (industrial insureds)
- 5Broker sponsorship required for foreign insurers
- 6Forms E-700, E-701, and SL Form 110 for sponsorship
- 7Foreign insurers: $15M capital and surplus
- 8Alien insurers: NAIC Quarterly Listing required
- 9No annual requalification of insurers
- 10Insurers remain on list until removal, sponsorship withdrawn, or financial requirements not met
- 11Policy notice REQUIRED in bold faced type
- 12Two different notice versions: domestic vs non-domestic surplus lines insurers
- 13Notice must state: no certificate of authority and no guaranty fund protection
- 14Facsimile signature allowed on semi-annual statement to SLA
- 15Maintain original notarized statement for 6 years
- 16Keep records for 3 years from expiration/cancellation
- 17Export List maintained by SLA
- 18Industrial insured exemption available
- 19Industrial insured: file Form E-II directly with DIFI
- 20Qualified risk manager required for industrial insured
- 21Industrial insured qualifications: $100K premiums + net worth/revenue/employee criteria
- 22Domestic surplus lines insurers permitted
- 23Insurance Exchange option: $2.5M trust deposit
- 24Exempt classes: ocean marine, out-of-state risks, interstate railroads
- 25Mexican auto insurance tax exempt
- 26State of Arizona property and liability insurance tax exempt
- 27Tribal reservation risks tax exempt
- 28Mail: 100 N 15th Ave Suite 261, Phoenix, AZ 85007-2630
- 29Contact SLA: [email protected] or (602) 279-6344
Required Forms
- Semi-annual Statement to SLA (brokers)
- Form E-II - Industrial Insured Premium Receipts Tax Report (industrial insureds)
- Form E-700 - Sworn Statement of Financial Condition (broker sponsorship)
- Form E-701 - Certificate of Public Supervisory Official (broker sponsorship)
- SL Form 110 - Certificate and Broker Affidavit (alien insurer sponsorship)
- Policy Notice - Bold Faced Type
Common Issues to Avoid
- Missing August 15 or February 15 deadlines
- Filing with wrong entity (SLA vs DIFI)
- Not obtaining broker sponsorship for new insurers
- Missing Forms E-700, E-701, or SL Form 110
- Insufficient capital and surplus documentation
- Missing policy notice in bold faced type
- Using wrong policy notice language (domestic vs non-domestic)
- Not maintaining original notarized statement for 6 years
- Not keeping records for 3 years
- Industrial insured filing through broker instead of directly
- Missing qualified risk manager documentation
- Not verifying industrial insured qualifications annually
- Attempting annual requalification of insurers (not required)
- Not checking Export List before diligent search
Helpful Tips
- Set semi-annual reminders: August 15 and February 15
- Track which period: Jan-Jun (Aug 15) or Jul-Dec (Feb 15)
- Broker filings go to SLA, industrial insured filings go to DIFI
- Check Export List first (maintained by SLA)
- For new insurers: complete sponsorship forms well in advance
- Forms E-700, E-701, SL Form 110 for sponsorship
- Verify foreign insurer has $15M capital and surplus
- Verify alien insurer on NAIC Quarterly Listing
- Good news: no annual requalification required
- Policy notice template available (bold faced type)
- Two versions: domestic vs non-domestic surplus lines insurers
- Facsimile signature OK on SLA statement
- Keep original notarized statement for 6 years
- Keep all records for 3 years from policy expiration
- Industrial insured: verify qualifications annually
- Industrial insured: ensure qualified risk manager meets criteria
- Qualified risk manager: 10 years experience OR 7 years + designation OR degree + 3 years/designation OR graduate degree
- Form E-II available on DIFI website
- SLA contact: J. Scott Wede at [email protected]
- SLA phone: (602) 279-6344
- DIFI Insurance Tax: (602) 364-2713
- Export List on SLA website
- Eligibility list on DIFI website links to NAIC Quarterly List
Important Notes
Arizona charges 3% tax plus 0.20% stamping fee to SLA. Semi-annual filing due Aug 15 (Jan-Jun) and Feb 15 (Jul-Dec). Broker sponsorship system: brokers file Forms E-700, E-701, and SL Form 110 for insurers. Foreign insurers: $15M capital and surplus. Alien insurers: NAIC Quarterly Listing. No annual requalification - insurers remain on list until removal requested, sponsorship withdrawn, or financial requirements not met. Industrial insured exemption with qualified risk manager (Form E-II filed directly with DIFI). Policy notice required in bold faced type (different language for domestic vs non-domestic surplus lines insurers). Facsimile signature allowed on semi-annual statements (maintain original notarized for 6 years). Export List maintained by SLA. Records kept 3 years minimum. Domestic surplus lines insurers permitted. Insurance Exchange option with $2.5M trust deposit.
Frequently Asked Questions
What is the surplus lines tax rate in Arizona?
The surplus lines tax rate in Arizona is 3.00%.
When is surplus lines tax due in Arizona?
Semi-annual filing due within 60 days after end of period. Period 1 (Jan 1-June 30) due August 15. Period 2 (July 1-Dec 31) due February 15. Industrial insureds file directly with DIFI using Form E-II.
How do I submit surplus lines filings in Arizona?
Contact the state insurance department for filing instructions.