The National Association of Professional Surplus Lines Offices (NAPSLO) applauds the inclusion of the surplus lines reform language in the Senate Banking Committee’s Financial Services Reform legislation, entitled "Restoring American Financial Stability Act of 2010."
Banking Committee Chair Christopher Dodd (D-CT) and committee members worked to put together the financial regulation bill, released on Monday. The bill included surplus lines reform language from the Nonadmitted and Reinsurance Reform Act SB 1363 / HR 2571 which has already passed the House three times, most recently on September 9, 2009, without a single vote against it.
When enacted, the surplus lines modernization provisions will make the payment of surplus lines taxes, particularly on multi-state risks, more efficient and less burdensome to the surplus lines broker and will benefit the insurance consumer who ultimately pays the price of the current dysfunctional and costly tax remittance system. In addition, multiple, duplicative and overlapping compliance requirements will be eliminated on surplus lines policies that insure risks across state lines. The legislation also allows many commercial buyers easier access to the surplus lines market where coverage for difficult and hard to insure risks can be found.
“We are pleased to see the NRRA provisions included in the regulatory reform legislation on which Sen. Dodd and other Senate Banking Committee Members so diligently worked,” NAPSLO President Marshall Kath stated. “The NRRA provisions will enable the surplus lines industry to operate more efficiently and effectively.”
Richard Bouhan, NAPSLO Executive Director said, “With the inclusion of the surplus lines provisions in the financial reform bill we believe there is a great opportunity to see the NRRA enacted and then see the benefits in the industry.”
“We are eager to see Senate action on the NRRA as included in the regulatory reform legislation,” said Maria Berthoud of B&D Consulting who represents NAPSLO in Washington, D.C. “The NRRA language was included in the regulatory reform bill passed by the House in 2009. The surplus lines provisions have broad support in both Chambers and we expect that it will be in any final version of regulatory reform legislation.”