There is new optimism that the majority of states will adopt legislation to be compliant with the federal Nonadmitted and Reinsurance Reform Act (NRRA) that was adopted under the Dodd-Frank financial-services law.
States are concerned the law would cause them to lose out on tax revenue when a firm’s business is placed in other states. Larger states would receive less tax revenue so they have not yet adopted SLIMPACT-Lite. However, states seem to be moving toward SLIMPACT-Lite. At least 10 states are required in order for SLIMPACT-Lite to go into effect.
The Council of State Governments reports that Indiana, Kentucky, North Dakota and New Mexico have adopted SLIMPACT-Lite legislation. The governors in Maryland and Ohio have legislation before them. There are eight other states seriously considering legislation to adopt SLIMPACT-Lite.
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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