Two concepts, Automatic Export for exempt commercial purchasers and One-State Compliance for multi-state surplus lines risks, which were presented by NAPSLO representatives to the House Financial Services Committee staff for inclusion in the SMART Act, have been included in the TRIA extension recently approved by the House of Representatives.
The ideas were presented in meetings last year with House Financial Services Committee staff and members by NAPSLO representatives John Wood, Andy Frazier, Past President Jim Griffith and Executive Director Richard Bouhan.
The language approved in the bill includes the surplus lines provisions regarding the elimination of the diligent search for the "exempt commercial purchaser" and also limits diligent search for multi-state commercial risks to one-state.
The House and Senate are now facing an end of the year deadline to adopt common language to extend TRIA. NAPSLO Washington D.C. representative Maria Berthoud is currently working with the Senate to have these concepts considered for inclusion in the final bill.
"We are gratified that our lobbying efforts have born fruit," Mr. Bouhan said. "In the TRIA extension, the House has embraced concepts NAPSLO put forward in discussions with the House committee on the SMART bill. We intend to continue our efforts to advance the cause of surplus lines and the wholesale distribution system in upcoming legislation."
Also included in the House bill was a statement of Congress's intent to have state laws streamlined in regard to the placement of these surplus lines risks by December 31, 2007.