NAPSLO officials are encouraged about Senate prospects for the NonAdmitted and Reinsurance Reform Act of 2009 following unanimous approval by the U.S. House of Representatives on Wednesday.
"We are very pleased to see the strong support the House members gave the bill and we hope the Senate will follow suit," said NAPSLO President John Wood. "This is an important piece of regulatory reform that will help both consumers and the industry."
The NRRA (HR 2571, S 1363) is aimed at streamlining and reducing barriers in state regulation of surplus lines insurance and reinsurance. It would create a uniform regulatory system, while preserving the role of the state regulator. The House overwhelmingly passed similar versions of the bill in the last two sessions of Congress. The Senate considered a similar bill in 2007 but it took no action prior to the end of the 110th Congress, requiring that the bill be reintroduced in the 111th Congress.
"This is the third time the House has passed this legislation. We are hoping the third time is the charm and the bill will be signed into law," said NAPSLO Executive Director Richard Bouhan. "These reforms and efficiencies are needed now."
Senators Evan Bayh (D-IN) and Mel Martinez (R-FL) introduced the Senate companion to the House-approved NRRA in early June. NAPSLO representatives have working closely with these leaders and other members of the Senate Banking, Housing and Urban Affairs Committee to encourage Senate action on the bill.
"We are encouraged by our discussions and look forward to the Senate passing the bill soon, whether as a stand-alone bill or in connection with other financial services & insurance reform proposals," said Maria Berthoud, Partner, B&D Consulting. "A number of proposals are being considered by the Senate and we believe the NRRA will be included as part of these reforms. Senator leaders know how important this bill is and recognize that it has broad industry support and the unanimous endorsement of the House."