Surplus Lines remains an area of insurance yet to be modernized. Recently there has been a lot of activity to create uniform requirements, forms and procedures including state tax filings.
The Dodd-Frank financial service reform legislation included the “Nonadmitted and Reinsurance Reform Act” (NRRA).
Recently, the NAIC Surplus Lines Implementation Task Force adopted the “Nonadmitted Insurance Multi-state Agreement” (NMIA) as a proposed model law.
Now it appears battle lines have been drawn over the NAIC’s proposed model law. One of the major issues is the “principal place of business” of the insured in situations where there is multistate placement of surplus lines insurance.
Several trade groups have voiced strong opposition stating the NRRA legislation does a better job of addressing the issues than the NAIC’s proposed model law (NMIA).
The insurance licensing information provided on this blog is not legal advice and the reader is advised to consult an attorney regarding application of this information in any particular situation.
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