The National Conference of State Legislatures (NCSL) has weighed in on the debate of which surplus lines proposed reform should be accepted.
The challenge is establishing allocation formulas to help states share premium tax dollars on nonadmitted transactions as well as other regulation uniformity.
The Dodd-Frank financial services reform law included the Nonadmitted and Reinsurance Reform Act (NRRA) for surplus lines reform. The National Association of Insurance Commissioners (NAIC) and the National Conference of Insurance Legislators (NCOIL) have competing plans on how best to implement the NRRA law.
Trade associations have already voiced their support for NCOIL’s proposal referred to as “SLIMPACT-Lite” rather than the NAIC proposed “Nonadmitted Insurance Multi-state Agreement” (NIMA).
The National Conference of State Legislatures (NCSL) has now released its draft resolution and will vote on it at its Dec. 10 meeting in Phoenix voicing its support of “SLIMPACT-Lite”.
Whichever plan is adopted, it will have a major impact on licensees selling excess and surplus lines insurance. States are required to begin implementing the NRRA by June 2011.
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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