NAPSLO applauds Senate taking up nonadmitted bill

March 22, 2007/For Immediate Release     Release No. 03-07 

NAPSLO officials said they are pleased that a version of the Nonadmitted and Reinsurance Act of 2007, currently being considered by the House of Representatives, has been introduced into the Senate as S929.

Senators Mel Martinez (R-FL) and Bill Nelson (D-FL) introduced a version of the Nonadmitted and Reinsurance Act of 2007 (H.R. 1065 in the House) on Tuesday as part of six pieces of legislation they introduced to comprehensively address hurricane and other natural disaster issues in the near and long term for Florida and the nation. It is anticipated that S 929 may be reintroduced and updated in the next few weeks by the sponsors or other members of the Senate Banking Committee.

“We are pleased to see that the Senate will also be discussing this needed piece of insurance reform legislation,” said NAPSLO President William Newton. “This bill would help the citizens of Florida, and other states, by making property/liability insurance more readily available to consumers and improving efficiency of the surplus lines insurance market.”

In addition to the surplus lines legislation, the six bills introduced by the Florida Senators would address ways to improve natural disaster preparedness and response, reinsurance reform, tax credits for mitigation, and creation of a national catastrophe fund.  The Nonadmitted and Reinsurance Act measure is aimed specifically at streamlining and reducing barriers in state regulation of surplus lines insurance and reinsurance. It would create a uniform system, while preserving the role of the state regulator.

In February, Rep. Dennis Moore (D-Kan.) and Rep. Ginny Brown-Waite (R-Fla.) submitted H.R. 1065 in the House. The bill is similar to H.R. 5637, which was approved 417-0 by the House in September 2006 but was not taken up by the Senate in the last legislative session.

NAPSLO officials said they are hoping to see action take place soon on the surplus line reforms and believe there will be wide support for the legislation, noting that NAPSLO and the AAMGA, CIAB, PCIA, IIABA, RIMS, and the RAA had worked together in advocating enactment of this type of legislation.

BACKGROUND
NAPSLO  is a national trade association representing the surplus lines insurance industry.  Surplus lines is a specialized segment of the insurance business that is also referred to as nonadmitted, specialty and/or excess lines.  Risks are placed in this market when they cannot be placed in the admitted/licensed market. 

NAPSLO represents surplus lines insurance agents/brokers and surplus lines insurance companies.  NAPSLO has over 1,500 member offices in the United States, Canada, Germany, and England. Acting as a source of information, NAPSLO spends a great deal of time identifying and explaining the vital role surplus lines plays in the insurance industry, including tracking and informing members on current state and federal regulations. NAPSLO also provides networking and educational programs for its members and scholarship and internship programs for qualified students interested in careers in the insurance industry.