NAIC Commends States on Surplus Lines Initiative

The National Association of Insurance Commissioners (NAIC) is applauding three states for leading efforts to implement a multi-state agreement developed by regulators to address the surplus lines part of the Nonadmitted and Reinsurance Reform Act (NRRA).

Florida, Hawaii and Mississippi are the first states to enter the Nonadmitted Insurance Multi-State Agreement (NIMA), with additional states anticipated to join shortly. Authorized by the Dodd-Frank Act, NIMA allows state authorities to work cooperatively to collect and allocate premium taxes for multi-state surplus lines insurance transactions.

"I commend Commissioners Kevin McCarty, Gordon Ito and Mike Chaney for leading their states in this nationwide effort," said NAIC President and Iowa Insurance Commissioner Susan Voss. "The process of developing NIMA was guided by regulators' commitment to preserve the ability of states to receive surplus lines premium taxes and to ensure they continue to receive taxes based on the risk or exposure located in their state."

“The bottom line on surplus lines is that states rely, in part, on these premium taxes to support their general funds,” said NAIC VP and Louisiana Insurance Commissioner Jim Donelon, who chairs the Surplus Lines Implementation Task Force. “Florida, Hawaii and Mississippi are leading the way on a state-based, national solution that addresses the challenge of the NRRA.”

 

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