Friday, April 08, 2011

NAIC Tries to Undercut Surplus Lines Reform

In the "Sounding Board" column of the April 2011 issue of American Agent & Broker magazine NAPSLO Executive Director Richard Bouhan writes that the National Association of Insurance Commissioners (NAIC) has done nothing to ensure that the states’ laws will be consistent with the federal requirements when NRRA becomes effective in July.

Rather the NAIC has concentrated on creating an interstate compact/agreement to allow the states to voluntarily share surplus lines tax revenue even though under the NRRA a compact is not mandatory and its provisions contain no deadline or effective date.

In addition, the NAIC's NIMA (Nonadmitted Insurance Multistate Compact) proposal "includes an excruciatingly detailed premium tax allocation formula which imposes data demands that go well beyond the requirements of the current premium tax allocation system."

The full article is available at the Property Casualty 360 website.

No comments: