Surplus Lines Interstate Compact

NAPSLO is involved with a number of industry groups to pursue the development of a surplus lines insurance multi-state interstate compliance compact (SLIMPACT) that would address the surplus lines premium tax remittance and multi-state compliance issues plaguing the E&S industry. 

[Congress is also looking at the situation and a chart comparing the proposed compact and proposed federal legislation is available to download.]

NAPSLO is part of the "Group of 60,” which is the group working on a follow-up effort to the NAPSLO “Future Is Now” white paper that a number of stamping office managers and NAPSLO have initiated

This "Group of 60" had its first meeting, in early September 2006, in conjunction with the fall NAIC meeting.  At this meeting, approximately 60 industry and regulatory representatives met to discuss the interstate compact concept for surplus lines.

The conclusion made by those attending this meeting was that the group should pursue the drafting of an interstate compact for surplus lines tax and compliance matters.  A number of sub-committees were created and NAPSLO representatives are chairing the Drafting Committee and Governance Committee.  

The group is a long way from finalizing a draft of an interstate compact to solve the surplus lines industry’s tax and compliance issues.   But, positive movement is beginning to occur on these issue and NAPSLO continues to be deeply involved in leading the effort.

For discussion purposes, NAPSLO prepared a draft interstate compact and a memo explaining the issues that are available. The draft interstate compact, a copy of an Executive Summary, and a set of FAQs are available to read.