Legislative News
June 11, 2009 - Florida Gov. Charlie Crist signed into law HB 853, which clarifies the surplus lines industry's status regarding forms and policy regulation that was challenged by the Florida Supreme Court’s ruling in 2008 in the Essex v. Zota opinion.
June 4, 2009 - NAPSLO was among a select group of insurance trade associations attending a Listening Discussion with White House officials on regulation of the financial industry.
May 21, 2009 - NAPSLO applauded the introduction of the Non-Admitted and Reinsurance Reform Act of 2009 in the U.S. House of Representatives by Reps. Dennis Moore (D-Kan.) and Scott Garrett (R-NJ), and indicated they hoped the bill would be introduced soon in the Senate.
May 1, 2009 - The Florida House and Senate approved legislation this week clarifying the surplus lines industry's status regarding forms and policy regulation that was challenged by the Florida Supreme Court’s ruling in 2008 in Essex v. Zota.
March 27, 2009 - NAPSLO leaders said they were optimistic about passage of the Nonadmitted and Reinsurance Reform Act (NRRA) after more than 20 NAPSLO representatives visited with Members of the Senate Committee on Banking, Housing and Urban Affairs on Tuesday to discuss surplus lines issues.
February 11, 2009 - NAPSLO applauded Rep. Dennis Moore (D-Kan.) and Rep. Scott Garrett (R-NJ) for announcing that they would introduce the Non-Admitted and Reinsurance Reform Act of 2009 in the U.S. House of Representatives and indicated they hoped the Senate would follow suit.
July 29, 2008 - Richard Bouhan, NAPSLO Executive Director testified before the Senate Committee on Banking, Housing and Urban Affairs as part of a hearing on “State of the Insurance Industry: Examining the Current Regulatory and Oversight Structure.”
April 2008 - The House Financial Services Committee's Capital Markets, Insurance and Government Sponsored Enterprises Subcommittee, chaired by Rep. Paul Kanjorski (D-PA), continued its series of hearings on insurance regulatory reform on Wednesday, April 16. Chairman Kanjorski introduced the Insurance Information Act of 2008 (H.R. 5840) on the day following the hearing.1 H.R. 5840 would establish an Office of Insurance Information (the "Office") within the Treasury Department — essentially implementing the Office of Insurance Oversight (OIO). A review of
the hearing by Legislative Committee Member Michael Byrne of Dewey & LeBoeuf is available to review.
August 1, 2007 - The House Financial Services Committee approved an extension of the Terrorism Risk & Insurance Act (TRIA). A review of the bill by Legislative Committee Member Michael Byrne of LeBoeuf, Lamb, Green & MacRae is available to review.
June 25, 2007 - NAPSLO applauded Monday's passage of the Non-Admitted and Reinsurance Reform Act of 2007 (H.R. 1065) by the U.S. House of Representatives and expressed optimism that the Senate would take up a companion bill soon.
May 17, 2007 - In an effort to encourage the adoption of the Non-Admitted and Reinsurance Reform Act of 2007 (H.R. 1065) by the U.S. House of Representatives and a companion bill, S. 929, in the Senate, NAPSLO has published and distributed a paper, Why HR 1065, to members of the Association, public, and the press. The paper reviews how HR 1065 would simplify the payment of surplus lines premium taxes, establish one state compliance on multi-state risks, streamline access to the surplus lines market for large
commercial purchasers; and create uniform surplus lines insurer eligibility standards.
March 21, 2007 - Senators Mel Martinez (R-FL) and Bill Nelson (D-FL) have 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.
February 13, 2007 - NAPSLO praised the reintroduction of the surplus lines bill in the House, saying consumer oriented reform of the surplus lines insurance marketplace is a step closer to reality through the introduction of the "Nonadmitted and Reinsurance Reform Act of 2007" (H.R. 1065) by Rep. Dennis Moore (D-Kan.). July 20, 2006 - NAPSLO applauds applauded the passage of the Non-Admitted and Reinsurance Reform Act of 2006 (H.R. 5637), by the House Financial Services Committee,
Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises and NAPSLO hopes that the next step is swift floor action on the bill.
June 19, 2006 - NAPSLO praised the introduction of the Non-Admitted and Reinsurance Reform Act of 2006 (H.R. 5637), during a congressional hearing on Wednesday, June 21, 2006, saying that the bill would bring "much-needed relief to the complex and confusing surplus lines regulatory process." A complete copy of NAPSLO's testimony is available and also a press release on the testimony is
available.
April 6, 2006 - NAPSLO outlining its disappointment that the long awaited Optional Federal Chartering Proposal (OFC), which was introduced in the U.S. Senate, did not include NAPSLO's proposed language to address the premium tax remittance and licensing concerns of the surplus lines industry. (A copy of the bill and a summary of the bill by the NAPSLO Lobbying firm, B&D Consulting, and the press
release are available to view.)
B&D Sagamore has provided NAPSLO a background paper on the proposed National Insurance Act, which contains the framework for an Optional Federal Charter and would radically change the surplus lines industry if passed. By allowing an Optional Federal Charter, the draft would allow an insurer to write insurance in all 50 states without the burden of satisfying each state's licensing requirements, rate and form regulations, and other standard. A copy of the B&D Sagamore background
paper about the National Insurance Act and a summary of the bill is available for download from the Legislation/Regulation section of the NAPSLO website or by clicking the above link.
May 10, 2005 - NAPSLO signs an agreement with B&D Sagamore effective May 1, 2005 to provide the Association with representation and lobbying in Washington, D.C. for both Congress and Executive Branch agencies. B&D Sagamore Vice President Maria L. Berthoud will represent
NAPSLO.
NAPSLO submitted comments in April 2005 to the House Financial Services Committee regarding the discussion draft of the State Modernization and Regulatory Transparency (SMART) Act. The major areas noted by NAPSLO in its written comments were:
1.) Inclusion of a provision or statement that the surplus lines market is to be free of rate and form regulation.
2.) Support for the provision that would create a procedure so that surplus lines brokers would remit all state premium tax due on surplus lines policies to one state.
3.) Support for an "automatic export" provision for all exempt or "Sophisticated Insurance Purchasers."
4.) Expansion of one state compliance on multi-state risks from sophisticated insurance producers to all commercial insureds.
Following additional staff work on the bill, the full committee may hold hearings this summer.
NAPSLO responded to questions by the NAIC Executive Task Force regarding the Compensation Disclosure Amendment to the Producer Licensing Model Act (PLMA) The NAIC Executive Committee on Broker Activities met Monday, March 14, 2005 in a public hearing on the Proposed Model Language Regarding Broker Disclosures. A copy of NAPSLO's statement is available from the NAPSLO web
site.
The NAIC Compensation Disclosure Model Bill Task Force recently put forth a revised model NAIC Compensation Disclosure Amendment to the NAIC Producer Licensing Model Act for further review and comment. Additional information and copy is available for download.
Treasury and the IRS issued guidance regarding the federal excise tax on insurance and reinsurance premiums paid to foreign insurance companies with respect to the insurance of U.S. risks. Several U.S. income tax treaties include provisions under which the insurance excise tax is waived in certain circumstances. Treasury Issues Guidance on Insurance Premium
Excise Tax
A U.S. district court has ruled that Florida's countersignature law and a statute prohibiting non-resident agents and brokers from being licensed as surplus lines brokers are unconstitutional. The court ruled that both requirements discriminate against nonresident agents and brokers and violate the Privileges and Immunities Clause and the Equal Protection Clause of the U.S. Constitution. Under the decision, both statutes are invalid. For more information, see the Florida Surplus Lines Service Office website.
Other
On October 29, 2004 Richard Polizzi, President of the National Association of Professional Surplus Lines Offices (NAPSLO), has issued a statement on behalf of NAPSLO in regard to the New York Attorney General's Investigation of insurance practices.
Due to the expanding number of states that offer non-resident surplus lines licenses (currently 45 and growing), requirements that impinge on surplus lines writers and producers take greater significance.
In order to assist our membership, in late 2003 NAPSLO surveyed state surplus lines associations to determine what, if any, laws or regulations or other requirements exist that would impact or circumscribe the ability of a surplus lines policy to be issued free of any rate or form control or regulation.
