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Key Person Insurance in Utah

Utah residents receive up to $500,000 in state guaranty-association coverage for a life policy’s death benefit if a member insurer becomes insolvent. Because a key-person policy may exceed that backstop, identify the issuing insurer and size the benefit with the cap in view. Utah explicitly recognizes employer insurable interest in directors, officers, managers, nonmanagement employees, and retirees, with written consent. For nonmanagement and retired employees, the amount is limited to unfunded liabilities; ask the broker to calculate the correct category. Compare your ownership and insured’s role with Utah Code § 31A-21-104(3)(d), (9). 4,1

What Is Key Person?

Key person insurance pays the business, not the person’s family, when a founder, partner or employee it relies on dies. Disability, overhead expense and buyout funding are separate products to discuss on their own. Read the national Key person guide.

What to Watch for in Utah

  • Document the Business Interest

    Utah explicitly recognizes employer insurable interest in directors, officers, managers, nonmanagement employees, and retirees, with written consent. For nonmanagement and retired employees, the amount is limited to unfunded liabilities; ask the broker to calculate the correct category. 1

  • Complete Written Notice and Consent

    Utah lets the employee’s written consent support employer-owned coverage, and the statute separately caps certain employee-benefit coverage. Confirm whether the requested policy is key-person or benefit-plan insurance before setting the face amount. 2,3

  • Check the State Guaranty Backstop

    The published Utah life-association limit is $500,000 per insured life. For a multi-person program, compare the per-life amount with the separate owner aggregate reported in NOLHGA’s model. Include it when assessing exposure to one insurer failure. For issuance, also check Utah Code § 31A-21-104(3)(d), (9). 4,5,1

Who Regulates Insurance in Utah

Utah Insurance Department

The Utah Insurance Department regulates licensed insurance companies and producers, offers a public licensee search, and accepts complaints about property/casualty insurance. Complaint jurisdiction depends on policy type and place of issue; employer self-funded plans are outside the Department’s authority. 6,7,8

Surplus-lines tax and stamping office

Reported tax rate: 4.25% of gross premium including policy fees, plus 0.18% stamping fee For Utah-home-state surplus-lines coverage, Utah charges 4.25% of gross premiums including policy fees, less returned premiums, and the Surplus Line Association of Utah collects a 0.18% stamping fee. Utah law requires a policy notice that the nonadmitted insurer is not protected by any Utah guaranty association; the state’s current guidance says a good-faith admitted-market effort is generally required unless the coverage is on the export list. 9,10,11,12,13

Surplus Line Association of Utah

Providers With Documented State Licenses

These providers publish a national listing for Key person; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Utah. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 20

Questions to Ask Before You Buy in Utah

  1. What Utah law supports our business’s insurable interest in this person, and what should we retain to prove the role?
  2. What written notice and consent must the insured receive before this policy is issued, and can coverage continue after employment ends?
  3. How would Utah’s guaranty-association limit apply to this policy and our other business-owned life policies?

Key Person in Utah: FAQ

How much of a key person life policy is protected if an insurer fails in Utah? 4,5

A covered life in Utah has a reported guaranty limit of $500,000. Ask the broker whether multiple policies on different people are subject to the owner aggregate. NOLHGA reports an aggregate $5 million limit for one owner’s multiple nongroup life policies. 4,5

Does my business need an employee’s consent for key person insurance in Utah? 2,3,1

Yes. Federal rules require written notice and consent before issue for the employer-owned life tax exception. Utah lets the employee’s written consent support employer-owned coverage, and the statute separately caps certain employee-benefit coverage. Confirm whether the requested policy is key-person or benefit-plan insurance before setting the face amount. Ask who will retain the consent and how the insured can access it. For state-law details, check Utah Code § 31A-21-104(3)(d), (9). 2,3,1

Key Person in Other States

Other Coverage in Utah

Sources

  1. 2025 Utah Code § 31A-21-104 — Insurable Interest and Consent. State statute (Justia U.S. Codes and Statutes); Utah Code § 31A-21-104(3)(d), (9). Accessed 2026-09-28.
  2. 26 U.S.C. § 101(j) — Certain employer-owned life insurance contracts. Office of the Law Revision Counsel, U.S. House of Representatives; 26 U.S.C. § 101(j)(2), (4). Accessed 2026-09-28.
  3. Internal Revenue Bulletin 2009-24 — Employer-Owned Life Insurance Contracts. Internal Revenue Service; Notice 2009-48, Q&A 6–7; written notice and consent. Accessed 2026-09-28.
  4. How You’re Protected: Coverage Levels by State. National Organization of Life & Health Insurance Guaranty Associations; Coverage Levels by State; life insurance death benefits; report current as of May 2025. Accessed 2026-09-28.
  5. Life and Health Insurance Guaranty Association Model Act. National Association of Insurance Commissioners; Section 8(A)(2)(d), owner aggregate benefit cap. Accessed 2026-09-28.
  6. utah insurance regulator. State insurance regulator; Official department pages identify consumer, licensee-search, complaint, and regulatory services. Accessed 2026-09-28.
  7. Utah Insurance Department Licensee Search. State insurance regulator; Official search provides public contact information and verifies agent or agency licensing status. Accessed 2026-09-28.
  8. Utah Insurance Department Complaints. State insurance regulator; Accepts most P&C complaints and specifies exclusions and complaint-channel limits. Accessed 2026-09-28.
  9. Utah Code §31A-3-301. Utah Legislature; Effective October 14, 2025; 4.25% of gross premium including fees; cancellation/return premium deductions and statutory exclusions. Accessed 2026-09-28.
  10. Utah Code §31A-3-303. Utah Legislature; §31A-3-301(4): premiums for surplus-lines insurance are taxable in full when Utah is the home state; subject to §31A-3-305 interstate allocation agreements for multistate risks. Accessed 2026-09-28.
  11. Excess & Surplus Lines Insurance. Utah Insurance Department; Current FAQ: tax 4.25% of gross premiums including fees; stamping fee 0.18%; SLA Utah is stamping office; submission within 60 days. Accessed 2026-09-28.
  12. Utah Code §31A-15-103(8)(c). Utah Legislature; Surplus-lines policy must contain statutory notice that the insurer is not licensed and receives no protection from any guaranty associations under Title 31A, Chapter 28. Accessed 2026-09-28.
  13. Excess & Surplus Lines Insurance. Utah Insurance Department; Current surplus-lines guidance: good-faith effort to place with admitted insurer is general rule; export-list coverage does not require diligent search, while off-list coverages require normal search procedures. Accessed 2026-09-28.
  14. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  15. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  16. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  17. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  18. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  19. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  20. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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