Legislative News

(For archived news prior to 2010, visit here)

2012

Iowa First State to Pass NRRA Legislation in 2012 
March 30, 2012 - Iowa became the first state in 2012 to adopt Nonadmitted and Reinsurance Reform Act related legislation among the states that did not take action in 2011. The Iowa Governor signed into law HF 2145 on Thursday and the bill incorporates several provisions of the NRRA, as well as exclusive home state regulation provisions consistent with the NRRA.

Wyoming Tax Multistate Policies Using Home Rate Under New Legislation
March 19, 2012 - The Wyoming Governor has signed into law House Bill 15, which incorporates several provisions of the Nonadmitted and Reinsurance Reform act (NRRA) as well as exclusive home state regulation provisions consistent with the NRRA. It enables the Wyoming Insurance Department to eventually utilize electronic transaction reporting for brokers.

NAIC Makes Quarterly Listing of Alien Insurers Available for Download by Public
February 6, 2012 - Due to the prominence afforded the Quarterly Listing of Alien Insurers in the Nonadmitted Insurance title of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the National Association of Insurance Commissioners (NAIC) said in recognition of the needs of excess and surplus lines producers and consumers to access this information that it would now make this list of insurers available to download from the NAIC.

Hawaii Issues FAQs on Surplus Lines Taxes
February 3, 2012 - The Hawaii Department of Commerce & Consumer Affairs Insurance section has issued a set of Frequently Asked Questions regarding the payment of surplus lines taxes.

Nebraska Withdraws from NIMA
January 4, 2012 - The Nebraska Department of Insurance notified the Governance Committee of the Nonadmitted Insurance Multistate Agreement (NIMA) that it is withdrawing as a participatory state from NIMA effective March 5, 2012.

2011

Nevada Issues Statement Regarding the Effective Date of the Multi-State Allocation Pursuant to the Nonadmitted Insurance Multistate Agreement (NIMA)
October 12, 2011 - Nevada  issued a statement that the Participating States in the Nonadmitted Insurance Multistate Agreement (NIMA) adopted an emergency amendment to NIMA. This emergency amendment defers the effective date of the multi-state premium-tax allocation pursuant to NIMA until the calendar quarter beginning on January 1, 2012.

New Jersey Enacts Law to Collect 100% of the Tax and Allows State to Join A Compact
August 21, 2011 - The New Jersey Governor has signed into law Nonadmitted and Reinsurance Reform Act (NRRA) compliance  legislation that would authorize the state to collect 100% of the tax on U.S. premiums and allows the state to join a compact or tax sharing agreement.

NAPSLO Applauds Regulators' Approval of Kentucky Allocation Proposal
August 19, 2011 - NAPSLO applauded insurance regulators' decision to approve a proposal by the Kentucky Department of Insurance on how to allocate surplus lines premium taxes. In a non-binding straw vote on Thursday, the SLIMPACT (Surplus Lines Multistate Compliance Compact) Commission voted to approve the allocation method proposed by Kentucky.

NAPSLO, Other Industry Groups Urge SLIMPACT States to Adopt Kentucky's Allocation Proposal
August 9 , 2011 - NAPSLO joined five other industry trade groups in writing representatives of the Surplus Lines Multistate Compliance Compact Commission to recommend that they adopt an allocation methodology proposed by the Kentucky Department of Insurance.

Delaware Enacts NRRA Bill Requiring 100% of Premium to be Taxed; Establishes Procedure to Enter Compact
August 1, 2011 - The Delaware Governor has signed  into law Nonadmitted and Reinsurance Reform Act (NRRA) compliance related legislation that would authorize the state to collect 100% of the tax on the U.S. premium and allows the state to join a compact or tax sharing agreement.

Oregon Signs NRRA Compliance Legislation, Allow Director to Enter Compact
August 2, 2011 - The Oregon Governor has signed into law Nonadmitted and Reinsurance Reform Act (NRRA) compliance legislation that allows the director of the Department of Consumer and Business Services, following legislative approval, to enter into a compact or to otherwise establish procedures with other states to allocate premium taxes.

Surplus Lines Industry Enters New Era on Multistate Risks Taxes with NRRA Now Effective
July 21, 2011 - Surplus lines brokers enter a new era on handling multistate risks on Thursday when the Nonadmitted and Reinsurance Reform Act (NRRA) becomes effective, and representatives of the NAPSLO said the change reflects a long campaign to simplify the tax payment process on multistate risks.

Texas Passes NRRA Legislation Focusing on Compliance, Tax Payment
July 17, 2011 - The Texas Governor has signed into law Nonadmitted and Reinsurance Reform Act (NRRA) compliance legislation. Texas is among the latest state to enact NRRA related implementation legislation. During the session NAPSLO provided draft legislation, offered comments and spoke with representatives of the department of insurance.

California Enacts NRRA Legislation; Law Doesn't Address Compact, Sharing Premium Taxes
July 13, 2011 California has enacted Nonadmitted and Reinsurance Reform Act (NRRA) compliance legislation that authorizes the imposition of surplus lines premium tax and independent procurement tax on 100% of premium, however the bill does not addresses compacts or sharing  premium taxes with other states.

Massachusetts Enacts NRRA Compliance Legislation, Insurance Commissioner Allowed to join Compact
July 11, 2011 - As part of an overall budget bill, Massachusetts approved NRRA Compliance Legislation that allows the Insurance Commissioner to join a Compact.

Missouri Enacts NRRA Compliance Legislation; Bill Doesn't Address Compact
July 7, 2011 - Missouri  has enacted Nonadmitted and Reinsurance Reform Act (NRRA) compliance legislation, however the legislation does not address the state joining a compact or tax sharing agreement.

NCOIL Issues Letter Urging Support of Simple and efficient surplus lines tax allocation formulas
July 1, 2011- NCOIL issues letter strongly supporting SLIMPACT; urges states to not allow SLIMPACT to be molded into NIMA; and encourages states to pursue allocation formulas that appropriately respond to the concerns that spurred the NRRA.

Pennsylvania Enacts NRRA Legislation; No Mention of Compact, Tax Sharing Agreement
June 30, 2011 - The Pennsylvania Governor has signed into law Nonadmitted and Reinsurance Reform Act (NRRA) compliance related legislation that does not address a compact or tax sharing agreement.

Louisiana Enacts NRRA Legislation Allowing State to Enter NIMA or other Tax Sharing Agreements
June 30, 2011 - The Louisiana Governor has signed into law a bill that authorizes the Commissioner to enter into NIMA or other cooperative compacts or agreements with other states.

Alaska Approves Legislation to Enter NIMA-type Agreement to Share Premium Taxes
June 24, 2011 - Alaska has enacted legislation which provides authority for the Director to enter into a NIMA-type agreement
with other states to share premium taxes.

Connecticut Enacts NRRA Bill Authorizing Revenue/Insurance Commissioner to Enter Tax Sharing Agreement
June 21, 2011 - The Connecticut Governor signed into law a bill on Tuesday that authorizes the Commissioner of Revenue Services and/or the Insurance Commissioner to enter into a tax sharing agreement or compact.

NAPSLO Questions Long-Term Viability of NAIC's NIMA Multistate Tax Compact
June 17, 2011 - Representatives of NAPSLO questioned the long-term viability of the Nonadmitted Insurance Multistate Agreement (NIMA) to collect and distribute surplus lines premium taxes in light of the announcement by the Florida Office of Insurance Regulation (Office) that Florida has entered into an agreement with Mississippi and Hawaii to start NIMA.

Maine Enacts NRRA Legislation Allowing State to Enter Tax Sharing Agreement
June 14, 2011 - The Maine Governor has signed into law a bill that authorizes the Maine Tax Assessor, after consulting with the Department of Professional and Financial Regulation, Bureau of Insurance, to enter into a tax sharing agreement.

New Hampshire Approves NRRA Bill Allowing Commissioner to Join Tax Sharing System
June 14, 2011 - The New Hampshire Governor has signed Nonadmitted and Reinsurance Reform Act (NRRA) compliance legislation that would give discretion for the Commissioner to participate in a tax sharing system for premium taxes on multistate risks.

Nevada Approves NRRA Legislation Allowing Commissioner to Enter Into Compact With Approval by State Board of Examiners
June 13, 2011 - The Nevada Governor has signed into law Nonadmitted and Reinsurance Reform Act (NRRA) compliance legislation which authorizes the Commissioner, with the approval of the State Board of Examiners, to enter into a tax sharing agreement.

North Carolina Passes NRRA Compliance Law; Study to Determine if State to Join a Compact
June 13, 2011 - The North Carolina Governor has signed into law Nonadmitted and Reinsurance Reform Act compliance legislation which authorizes a study to determine whether the state's will join a tax sharing agreement or compact.

Tennessee Approves SLIMPACT-Lite but State Could Join Other Tax Sharing Agreement
June 10, 2011 - The Tennessee Governor has signed into law a bill that would adopt SLIMPACT-Lite, however if the compact is not effective by early next year the bill allows the state to enter into another tax sharing agreement.

Alabama Enacts SLIMPACT-Lite Bill
June 9, 2011 - The Alabama governor signed into law on Thursday a bill which would adopt the SLIMPACT-lite tax sharing agreement.

Kentucky Issues Advisory Opinion on Impact of NRRA on State
June 8, 2011 - The Kentucky Insurance Department has issued an Advisory Opinion to clarify the Department’s expectations of the compact provisions of Kentucky's new law (HB 167) which brings the state into compliance with the Nonadmitted and Reinsurance Reform Act (NRRA).

Hawaii Approves NRRA Compliance Legislation; State Could Join Compact Under Bill
June 5, 2011 - The Hawaiian Governor has signed legislation this week which provides the Insurance Commissioner broad discretion to participate in a tax sharing system, as well as to adopt uniform insurer eligibility requirements.

Rhode Island Approves SLIMPACT-Lite & General Compact Legislation
June 3, 2011 - The Rhode Island Governor has signed into law two tax sharing compact related bills; one adopting SLIMPACT-Lite and the second provides general authorization for the commissioner to join a compact.

Vermont Approves NRRA Compliance Legislation; Also Adopts SLIMPACT-Lite Tax Sharing System
June 3, 2011 - The Vermont Governor has signed NonAdmitted and Reinsurance Reform Act (NRRA) compliance legislation that would adopt SLIMPACT-Lite.

Florida’s Approves NRRA Bill to Share Taxes With Other States; Requires Multi-State Policies to Use Each State's Tax Rate
May 31, 2011 - The Florida Governor signed legislation late last week authorizing the Department of Financial Services and the Office of Insurance Regulation to enter into an agreement with other states to share taxes. The legislation also requires that taxes be calculated on a gross premium basis but at the individual states’ tax rates for which each portion of the risk is located.

Minnesota Passes NRRA Compliance Legislation; No Mention of Compacts
May 27, 2011 - Minnesota recently enacted Nonadmitted and Reinsurance Reform Act (NRRA) compliance legislation but it the legislation did not include any mention of a compact.

Oklahoma Approves NRRA Legislation Allowing State to Join NIMA or Other Compacts
May 19, 2011- The Oklahoma Governor has signed legislation on Thursday which authorizes the Commissioner to enter into the Nonadmitted Insurance Multistate Agreement (NIMA) or any other multistate agreement or compact.

Maryland to Tax 100% of Risk Under NRRA Legislation; Examine Actions by Other States
May 19, 2011 -The Maryland Governor signed legislation on Thursday which would require the payment of premium tax based on 100% of the premium when Maryland is the home state. The bill also will require the Insurance Commissioner to conduct a study of the approaches taken by other states to implement the NRRA.

Kansas Governor Signs into Law Bill to Adopt SLIMPACT Tax Sharing System
May 13, 2011 - Kansas Governor signs into law NRRA compliance legislation will have the state adopt SLIMPACT tax sharing system.

Georgia Approves Legislation Allowing State to Enter into Tax Sharing Agreement
May 12, 2011  - Georgia Governor signs legislation to allow state to enter into tax sharing agreement, such as SLIMPACT-lite or NIMA.

Indiana Approves Bill Adopting SLIMPACT-lite Tax Sharing Agreement
May 11, 2011  - The Indiana governor signed into law on Tuesday a bill which would adopt the SLIMPACT-lite tax sharing agreement.

Montana Approves NIMA Compact Authorization
May 6, 2011  - The Montana Governor has signed legislation which authorized the insurance commissioner to enter into an agreement with other states to share premium taxes, specifically NIMA.

Nebraska Approves Legislation Allowing State to Enter into NIMA
April 26, 2011  - Nebraska's Governor signed a bill on Tuesday which authorizes the Insurance Director to enter into the NIMA tax allocation compact to facilitate the collection, allocation and disbursement of premium taxes.

Replay of NAPSLO Webinar on NRRA Implementation Status Available
April 20, 2011  - Information on the status of implementation of surplus lines reforms signed into law in 2010 and their impact on surplus lines brokers and carriers was the subject of a NAPSLO sponsored webinar on April 19. More than 1,000 people signed up to watch the webinar and a copy of the webinar is available to view online at http://webinar.napslo.org.

North Dakota Approves SLIMPACT-lite NRRA Implementation Legislation
April 19, 2011  - North Dakota has approved legislation on Tuesday which would adopt the SLIMPACT-lite type of tax allocation compact.

Arizona Approves Legislation Allowing Director of Insurance to Enter into Compact
April 18, 2011  - The Arizona Governor has signed House Bill 2112 on Monday which generally authorizes the Director of Insurance to enter into a compact or agreement such as SLIMPACT or NIMA. Arizona is the 14th state to pass NonAdmitted and Reinsurance Reform Act (NRRA) implementation legislation during this session

Washington Approves Legislation Without Tax Sharing
April 11, 2011  - Washington Governor signs legislation which does not provide for sharing premium taxes on multi-state risks. For property and casualty insurance if Washington is the insured's Home State, the surplus lines tax would be imposed on 100% of the premium even if the policy covers multi-state risks.

New Mexico Approves SLIMPACT-lite Measure
April 8, 2011  - New Mexico Governor signs  SB0250 which would adopt SLIMPACT-lite.  A Compact Commission would adopt rules on tax allocation, reporting, collection and distribution, and may also adopt uniform insurer eligibility requirements. The bill provides for exclusive home state regulation of surplus lines compliance pursuant to the compact, but does not incorporate the NRRA's ECP exemption from state diligent search requirements.

Idaho Approves Amendments to existing laws
April 6, 2011  - Idaho Governor signs HB179 which amends existing law relating to unauthorized insurers and surplus lines to provide that certain code sections apply only when the insured's home state is Idaho; to provide that a certain search requirement is not required in certain circumstances, to provide record maintenance requirements, to provide restrictions relating to insurers with which surplus line brokers may insure, to grant the director certain rulemaking authority and to provide a penalty; to grant the director the authority to participate in a certain database; and to revise provisions relating to a tax on surplus lines.

West Virginia Approves Bill Supporting NIMA and Blended Tax Allocation
April 5, 2011  - West Virginia approves bill would authorize the Commissioner to participate in a clearinghouse through NIMA to share taxes with other participating states. The bill would require brokers to apply the tax rate of each state where there are insured exposures for a multi-state risk even if a state is not sharing taxes with West Virginia on a reciprocal basis.

Arkansas Governor Signs Bill Favoring NIMA
April 4, 2011  - Arkansas Governor signs HB2143 which would generally authorize the Commissioner to enter into agreements with other states to share taxes. The bill suggests a preference for NIMA but the bill does not expressly reference NIMA. The bill does not otherwise address NRRA reforms.

Rejection of Tax Compact Authorization in NY NRRA Compliance Legislation May Signal Difficulties for Establishing National Compact
April 4, 2011  - New York's decision to reject authorizing the state to join a surplus lines tax allocation compact may indicate that forming such a national tax sharing arrangement for surplus lines is not feasible, according to NAPSLO officials. In passing the legislation, signed into law on Thursday by Gov. Andrew Cuomo, the state Legislature removed provisions that would have authorized the state to join a tax compact.

Utah Approves Bill Authorizing Tax Sharing Agreement
March 31, 2011  - Utah approves bill that does not expressly endorse NIMA or SLIMPACT but does authorize the Commissioner to enter into a tax sharing agreement with other states, including participating in a clearinghouse and adopting an allocation schedule.

SLIMPACT Approved by Kentucky
March 25 - Kentucky Governor Steve Beshear signed legislation into law last week which makes Kentucky the first state to adopt the surplus lines insurance multistate compliance compact, or SLIMPACT-lite.

Ohio Governor Signs Surplus Lines Legislation
March 24, 2011  - Ohio Gov. John R. Kasich signed House Bill 122, legislation continuing Ohio’s involvement in the “surplus lines” insurance market. HB 122 permits the Director of the Ohio Department of Insurance to join a compact if deemed advantageous to the state and harmonizes Ohio insurance law with federal requirements imposed through the Non-Admitted and Reinsurance Reform Act (NRRA), a provision included in the Dodd-Frank legislative package passed by Congress in 2010.

Virginia Approves Bill to Allow Commissioner to Participate in Compact
March 24, 2011  - Virginia passes bill that does not endorse SLIMPACT or NIMA but more generally authorizes the commissioner to participate in a tax allocation compact or agreement

NAPSLO to Offer Webinar on NRRA Implementation Status on April 19
March 21, 2011  - Information on the implementation status of surplus lines reforms signed into law in 2010 and their impact on the surplus lines industry will be the subject of a NAPSLO sponsored webinar on Tuesday, April 19 at 2:00 p.m. Eastern.

Mississippi Approves Bill Authorizing Commissioner to Enter Compact
March 11, 2011  -  Mississippi Approved bill which does not endorse NIMA or SLIMPACT but instead generally authorizes the Commissioner to enter into an agreement, compact or other procedures for allocating premium taxes.

South Dakota First State to Pass NRRA Related Legislation, Favors NIMA
February 17, 2011  - South Dakota approves bill that gives very broad discretion to the director to enter into a NIMA-type agreement.  Under the agreement, brokers would be required to pay premium tax to South Dakota only on South Dakota's allocated share.

Indiana Senate Committee Approves SLIMPACT
February 17, 2011  - The Senate Committee on Financial Institutions and Insurance passed SLIMPACT by a vote of 6 to 3. Emily Campbell of the law firm of Baker & Daniels testified for NAPSLO in favor of SLIMPACT at the hearing. The Insurance Department opposed the legislation.

CSG Says NIMA Fails to Provide Way to Uniformity, Usurps Legislative Authority
February 3, 2011  - Rick Masters, Special Counsel for Interstate Compact at the Council of State Governments released a memorandum questioning the Nonadmitted Insurance Multistate Agreement (NIMA) tax compact, saying that "NIMA fails to provide any substantial or enforceable mechanism for achieving uniformity because it fails to provide a binding agreement which pre-empts other state laws in conflict with its requirements. Moreover it unconstitutionally purports to vest authority in an Executive Branch official (e.g. the Insurance Commissioner) to bind the Legislature of a State which adopts it. NIMA thus usurps Legislative authority because the action which NIMA authorizes to be taken by the Insurance Commissioner contains no limitations or conditions upon which such uniform regulations could be developed or which a state insurance department is otherwise authorized to undertake within its own state."

State Inaction Risks Loss of Surplus Lines Premium Tax Revenue
States appear poised to leave millions in premium tax revenue "on the table" when the NRRA becomes law on July 21 and states need to update their tax laws to capture 100 percent of nonadmitted insurance premium where the insured is the home state, according to an article in the Insurance Journal by Richard Brown, an insurance regulatory attorney based in San Francisco.

NAPSLO Releases Protocol Outlining Brokers’ NRRA Responsibilities
January 31, 2011  - To assist NAPSLO member surplus lines brokers to prepare to deal with the NonAdmitted and Reinsurance Reform Act (NRRA) when it takes effect on July 21, 2011, the Association has released guidelines  produced by the law firm of Dewey & LeBoeuf LLP outlining broker responsibilities under the new federal law.

State Groups Ask Congress to Delay NRRA Implementation
January 26, 2011  - The National Conference of Insurance Legislators (NCOIL), the Council of State Governments (CSG) and the National Conference of State Legislatures (NCSL) have sent an open letter to Congress asking that implementation of the surplus lines section of the NonAdmitted and Reinsurance Reform Act be delayed one year until July 21, 2012.

NCOIL, CSG, NCSL Send SLIMPACT-LITE to States, Urge Prompt Consideration
January 7, 2011  - Leaders of the National Conference of Insurance Legislators (NCOIL), The Council of State Governments (CSG), and the National Conference of State Legislatures (NCSL) sent a joint letter to state colleagues urging their consideration of a new Surplus Lines Insurance Multi-State Compliance Compact(known as SLIMPACT-Lite). The recommendation from the three major groups comprising state lawmakers comes as state houses across the country begin opening their doors for 2011 legislative sessions.

2010

Rep. Moore Issues Clarifying Statement in Congressional Record on Goal of NRRA

December 15, 2010 -  Rep. Dennis Moore (D-Kan.) issues statement in the Congressional Record outlining the goal of the NRRA was to streamline the regulatory regime to enable insurers and brokers to more easily and efficiently comply with state rules and provide much-needed insurance protections to consumers.