Is a surplus lines reform compromise in the works?
The objective is to provide uniform surplus lines regulatory standards as well address the collection and allocation of surplus lines taxes.
The Dodd-Frank financial service reform legislation included the “Non-admitted and Reinsurance Reform Act” (NRRA) that states are required to begin implementing by June 2011.
In early November, the NAIC Surplus Lines Implementation Task Force adopted the “Non-admitted Insurance Multi-state Agreement” (NMIA) as a proposed model law.
Several trade groups voiced strong opposition stating the NRRA legislation does a better job of addressing the issues than the NAIC’s proposed model law (NMIA).
Now it appears the National Council of Insurance Legislators (NCOIL) has created a model law called the “Surplus Lines Insurance Multi-state Compliance Compact” (SLIMPACT).
Are there other options? Will a decision be made so states can begin implementing changes by June 2011?
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