NAPSLO is applauding the inclusion of surplus lines reform language in the Wall Street Reform and Consumer Protection Act of 2009, which is currently under debate by the U.S. House of Representatives
The language, part of an amendment offered by Rep. Dennis Moore (D-KS) and Scott Garrett (R-NJ), establishes that the tax policies, licensing and other regulatory requirements of the home state of policyholders govern surplus lines transactions. The amendment, and several others, were approved to be included in the bill, which the House is expected to approve on Friday.
The bill (H.R. 4173) would reform financial services regulation and create a Federal Insurance Office, a Consumer Financial Protection Agency (CFPA) and Financial Stability Council. Rep. Moore and Garrett’s amendment specifies that surplus lines transactions be governed by the home state of the policyholder.
Recently the Senate Banking Committee also began looking at Financial Services Reform under a bill entitled "American Financial Stability Act of 2009," and Banking Committee Chair Christopher Dodd (D-CT) and Ranking Member Richard Shelby (R-AL) also worked to incorporate similar surplus lines reform language in the Senate financial services modernization legislation.