NAPSLO is leading a nationwide effort to inform state lawmakers, insurance regulators and others about changes needed in laws and regulations to properly implement the Nonadmitted Reinsurance Reform Act (NRRA), which became law last year through the landmark Dodd-Frank legislation.
"For years, NAPSLO has led efforts to secure the enactment of surplus lines legislative reform in both the states and in Washington. With the passage of the NRRA within Dodd-Frank, this effort now moves to every state, necessitating that NAPSLO take this initiative to engage state lawmakers and insurance commissioners across the country to ensure this key section of Dodd-Frank is properly implemented in every state," NAPSLO Legislative Committee co-Chair Hank Haldeman said.
The NRRA mandates that beginning July 21st, the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a broker to pay taxes. To comply with these rules, states are revising their laws, and many states are also considering forming a tax compact to handle allocation of surplus lines premium taxes.
"With the NRRA implementation clock ticking, NAPSLO has expanded its resources to ensure our members, clients and other stakeholders are properly protected," said NAPSLO President Letha Heaton. "This issue is of great importance to our members and is a top priority of the entire organization."
As part of the effort that focuses on lawmakers, regulators and the general public, NAPSLO has hired outside counsel nationally as well as lobbyists on the ground in key states. The organization has also developed a special section of the NAPSLO website (New Surplus Lines Laws) to provide detailed state-by-state information on the latest developments and other important information for NAPSLO members and brokers.
"Appropriate state implementation of the NRRA is a top priority for NAPSLO and for all of our members. Several states have already acted this year, and we expect others to take action before many state legislative sessions adjourn in the coming months. NAPSLO is committed to achieving the best implementation possible in every state, and to keeping all our members updated on the latest developments," added Legislative Committee co-Chair Dave Leonard.