The Florida Governor signed legislation late last week authorizing the Department of Financial Services and the Office of Insurance Regulation to enter into an agreement with other states to share taxes. The legislation also requires that taxes be calculated on a gross premium basis but at the individual states’ tax rates for which each portion of the risk is located.
Florida is the 23rd state to pass NonAdmitted and Reinsurance Reform Act related implementation legislation. During the session NAPSLO provided draft legislation, offered comments on legislation and testified during a hearing.
The NRRA mandates that beginning July 21, 2011 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. As a result states are working to bring their laws into compliance.
Florida’s bill generally authorize the DFS and the OIR to enter into an agreement with other states to share taxes. The bill outlines the terms of such agreement and requires the Florida Surplus Lines Service Office to implement the agreement. The bill does not expressly limit the tax sharing agreement the DFS/OIR may enter into.
The bill requires that for multi-state policies filed in Florida effective July 21, 2011, taxes will now be calculated on a gross premium basis but at the individual states’ tax rates for which each portion of the risk is located. The service fee and assessments will be calculated on a gross premium basis as well, but at Florida’s current rate schedule.
The bill does not incorporate the NRRA's mandates for exclusive home state regulation, an exempt commercial purchaser (ECP) exemption or nationwide uniform insurer eligibility standards, although these are standard NRRA provisions. A Broker Protocol with additional information is available on the NAPSLO website.
The Florida Surplus Lines Service Office website provides additional information regarding the state's action on the NRRA, including links to a recent webinar and Frequently Asked Questions.
Tuesday, May 31, 2011
Friday, May 20, 2011
Oklahoma Approves NRRA Legislation Allowing State to Join NIMA or Other Compacts
The Oklahoma Governor has signed legislation on Thursday which authorizes the Commissioner to enter into the Nonadmitted Insurance Multistate Agreement (NIMA) or any other multistate agreement or compact.
Oklahoma is the 22nd state to pass NonAdmitted and Reinsurance Reform Act related implementation legislation and during the session. NAPSLO provided draft legislation and offered comments on legislation. However, there are several bills under consideration and any subsequent bill signed into law will take precedence over a previously signed bill.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. As a result states are working to bring their laws into compliance.
Oklahoma’s bill authorizes the Commissioner to enter into NIMA or "any other multistate agreement or compact with the same function and purpose." To participate in a NIMA-type agreement, the Commissioner is authorized to establish a uniform statewide rate of taxation (that encompasses all existing rates of taxation, fees and assessments imposed by Oklahoma), and the Commissioner is required to document how that rate is calculated.
The bill authorizes the Commissioner to adopt the multistate agreement's allocation schedule and requires surplus lines brokers to submit any required information to the clearinghouse established by the Commissioner through the multistate agreement, and to make quarterly premium tax payments to the clearinghouse.
The bill provides that the tax provisions shall apply equally to single state risks and multistate risks and requires brokers and insureds to apply the tax rates of each state where there are insured locations/exposures for a multistate risk even if a state is not sharing taxes with Oklahoma on a reciprocal basis. The bill also provides that Oklahoma will retain any premium tax allocated to a state that is not reciprocal with Oklahoma.
Oklahoma's bill would not change the state's annual reporting of surplus lines transactions by surplus lines brokers, which reports would need to show the information required to be submitted to the clearinghouse.
The bill defines "home state" per the NRRA, but does not incorporate the NRRA's mandate of exclusive home state regulation of nonadmitted insurance other than for premium tax. The bill does incorporates the NRRA's exempt commercial purchaser (ECP) exemption and generally adopts the NRRA's uniform eligibility requirements for insurers.
Oklahoma is the 22nd state to pass NonAdmitted and Reinsurance Reform Act related implementation legislation and during the session. NAPSLO provided draft legislation and offered comments on legislation. However, there are several bills under consideration and any subsequent bill signed into law will take precedence over a previously signed bill.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. As a result states are working to bring their laws into compliance.
Oklahoma’s bill authorizes the Commissioner to enter into NIMA or "any other multistate agreement or compact with the same function and purpose." To participate in a NIMA-type agreement, the Commissioner is authorized to establish a uniform statewide rate of taxation (that encompasses all existing rates of taxation, fees and assessments imposed by Oklahoma), and the Commissioner is required to document how that rate is calculated.
The bill authorizes the Commissioner to adopt the multistate agreement's allocation schedule and requires surplus lines brokers to submit any required information to the clearinghouse established by the Commissioner through the multistate agreement, and to make quarterly premium tax payments to the clearinghouse.
The bill provides that the tax provisions shall apply equally to single state risks and multistate risks and requires brokers and insureds to apply the tax rates of each state where there are insured locations/exposures for a multistate risk even if a state is not sharing taxes with Oklahoma on a reciprocal basis. The bill also provides that Oklahoma will retain any premium tax allocated to a state that is not reciprocal with Oklahoma.
Oklahoma's bill would not change the state's annual reporting of surplus lines transactions by surplus lines brokers, which reports would need to show the information required to be submitted to the clearinghouse.
The bill defines "home state" per the NRRA, but does not incorporate the NRRA's mandate of exclusive home state regulation of nonadmitted insurance other than for premium tax. The bill does incorporates the NRRA's exempt commercial purchaser (ECP) exemption and generally adopts the NRRA's uniform eligibility requirements for insurers.
Maryland to Tax 100% of Risk Under NRRA Legislation; Examine Actions by Other States
The Maryland Governor signed legislation on Thursday which would require the payment of premium tax based on 100% of the premium when Maryland is the home state. The bill also will require the Insurance Commissioner to conduct a study of the approaches taken by other states to implement the NRRA.
Maryland is the 21st state to pass NonAdmitted and Reinsurance Reform Act related implementation legislation and during the session. NAPSLO provided draft legislation and worked with a local member to provide testimony on the issue.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. As a result states are working to bring their laws into compliance.
Maryland's bill requires the payment of premium tax at the Maryland rate and based on 100% of the premium when Maryland is the home state. In addition, the Commissioner is required to conduct a study of the approaches taken by other states to implement the NRRA, paying particular attention to action taken by contiguous states, and issue a report of findings to the Senate Finance Committee and the House Economic Matters Committee by the begining of next year.
The report must include information regarding relevant legislative enactments; execution of relevant agreements or compacts; the impact on state premium tax revenues (for Maryland and other states); future plans for implementation and relevant guidance from Congress; the industry and various industry organizations (e.g., NCOIL, NAIC).
The bill would require brokers and insureds to provide an allocation report in a form and subject to deadlines to be established by regulation. The bill generally incorporates the exempt commercial purchaser (ECP) exemption and home state exclusive regulation mandates of the NRRA, by cross-referencing the specific statutory definitions of an ECP and "home state" from the NRRA rather than incorporating the definitions into Maryland law.
The bill generally adopts the NRRA insurer eligibility standards, but retains authority for the Commissioner to prohibit placements with an insurer that "is not in a safe or solvent financial condition" or "has refused to pay just claims," and to impose other eligibility requirements that are preempted by the NRRA. The home state exemption from the surplus lines broker licensing requirement is conditioned on the broker being licensed in the insured's home state, which condition is preempted by the NRRA.
Maryland is the 21st state to pass NonAdmitted and Reinsurance Reform Act related implementation legislation and during the session. NAPSLO provided draft legislation and worked with a local member to provide testimony on the issue.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. As a result states are working to bring their laws into compliance.
Maryland's bill requires the payment of premium tax at the Maryland rate and based on 100% of the premium when Maryland is the home state. In addition, the Commissioner is required to conduct a study of the approaches taken by other states to implement the NRRA, paying particular attention to action taken by contiguous states, and issue a report of findings to the Senate Finance Committee and the House Economic Matters Committee by the begining of next year.
The report must include information regarding relevant legislative enactments; execution of relevant agreements or compacts; the impact on state premium tax revenues (for Maryland and other states); future plans for implementation and relevant guidance from Congress; the industry and various industry organizations (e.g., NCOIL, NAIC).
The bill would require brokers and insureds to provide an allocation report in a form and subject to deadlines to be established by regulation. The bill generally incorporates the exempt commercial purchaser (ECP) exemption and home state exclusive regulation mandates of the NRRA, by cross-referencing the specific statutory definitions of an ECP and "home state" from the NRRA rather than incorporating the definitions into Maryland law.
The bill generally adopts the NRRA insurer eligibility standards, but retains authority for the Commissioner to prohibit placements with an insurer that "is not in a safe or solvent financial condition" or "has refused to pay just claims," and to impose other eligibility requirements that are preempted by the NRRA. The home state exemption from the surplus lines broker licensing requirement is conditioned on the broker being licensed in the insured's home state, which condition is preempted by the NRRA.
Monday, May 16, 2011
Kansas Approves Bill Adopting SLIMPACT-lite Tax Sharing Agreement
The Kansas governor signed into law on Friday a bill which would adopt the SLIMPACT-lite tax sharing agreement.
Kansas is the 20th state to sign into law NonAdmitted and Reinsurance Reform Act (NRRA) implementation legislation and the sixth state to adopt SLIMPACT-lite or SLIMPACT-lite authorizing legislation. In connection with Kansas' NRRA implementation efforts, NAPSLO provided draft legislation, comments on the legislation, and Director of Government Relations Steve Stephan testified before the legislature.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. As a result, states are working to bring their laws into compliance.
The Kansas bill adopts SLIMPACT-lite, which provides for the creation of a Compact Commission that would adopt rules on tax allocation, reporting, collection and distribution, and uniform insurer eligibility requirements.This legislation is intended to streamline and improve the efficiency of the surplus lines market by eliminating duplicative and inconsistent tax and regulatory requirements among the states.
Kansas is the 20th state to sign into law NonAdmitted and Reinsurance Reform Act (NRRA) implementation legislation and the sixth state to adopt SLIMPACT-lite or SLIMPACT-lite authorizing legislation. In connection with Kansas' NRRA implementation efforts, NAPSLO provided draft legislation, comments on the legislation, and Director of Government Relations Steve Stephan testified before the legislature.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. As a result, states are working to bring their laws into compliance.
The Kansas bill adopts SLIMPACT-lite, which provides for the creation of a Compact Commission that would adopt rules on tax allocation, reporting, collection and distribution, and uniform insurer eligibility requirements.This legislation is intended to streamline and improve the efficiency of the surplus lines market by eliminating duplicative and inconsistent tax and regulatory requirements among the states.
Friday, May 13, 2011
Georgia Enacts Legislation Allowing State to Enter Tax Sharing Agreement
On May 12, the Georgia Governor signed legislation implementing certain provisions of the Nonadmitted and Reinsurance Reform Act (NRRA). Notably, Georgia’s NRRA legislation authorizes the Governor, in consultation with the Commissioner, to enter into an agreement with other states to collect and share premium taxes on multi-state risks, subject to certain conditions and limitations. In connection with Georgia’s NRRA efforts, NAPSLO provided draft legislation and comments to the legislature. Georgia is the 19th state to pass NRRA implementing legislation during this session.
The NRRA mandates that beginning July 21, an insured's home state is the only state with jurisdiction over surplus lines transactions, and therefore, the only state that can require a tax be paid by the broker. In the wake of the NRRA, many states are working to bring their laws into compliance.
As amended, Georgia’s legislation authorizes the Governor, in consultation with the Commissioner, to enter into a tax-sharing agreement substantially in the form of Slimpact-lite or NIMA. The Governor is required to select the agreement, if any, that provides the best financial advantage to the state. In determining which agreement is most advantageous (if any), the Governor, in consultation with the commissioner, must consider the impact on the state’s gross receipt of premium tax and the potential additional administrative burden to the state and surplus line brokers procuring or placing surplus line insurance. In the event the Governor enters into a tax-sharing agreement, notice of the action must be communicated to certain legislative officials, and the commissioner must submit an annual report to those legislators assessing whether the agreement continues to be in the best interest of the state.
Georgia’s legislation also adopts the NRRA's uniform eligibility requirements for U.S. domestic and non-domestic insurers and incorporates the NRRA’s exempt commercial purchaser exemption. The legislation further incorporates the NRRA’s definition of home state, however, does not otherwise provide for exclusive home state regulation or taxation. Georgia’s bill further requires brokers to apply the tax rates of each state to the applicable portions of multi-state risks, and continues to require submission of quarterly transaction reports.
The NRRA mandates that beginning July 21, an insured's home state is the only state with jurisdiction over surplus lines transactions, and therefore, the only state that can require a tax be paid by the broker. In the wake of the NRRA, many states are working to bring their laws into compliance.
As amended, Georgia’s legislation authorizes the Governor, in consultation with the Commissioner, to enter into a tax-sharing agreement substantially in the form of Slimpact-lite or NIMA. The Governor is required to select the agreement, if any, that provides the best financial advantage to the state. In determining which agreement is most advantageous (if any), the Governor, in consultation with the commissioner, must consider the impact on the state’s gross receipt of premium tax and the potential additional administrative burden to the state and surplus line brokers procuring or placing surplus line insurance. In the event the Governor enters into a tax-sharing agreement, notice of the action must be communicated to certain legislative officials, and the commissioner must submit an annual report to those legislators assessing whether the agreement continues to be in the best interest of the state.
Georgia’s legislation also adopts the NRRA's uniform eligibility requirements for U.S. domestic and non-domestic insurers and incorporates the NRRA’s exempt commercial purchaser exemption. The legislation further incorporates the NRRA’s definition of home state, however, does not otherwise provide for exclusive home state regulation or taxation. Georgia’s bill further requires brokers to apply the tax rates of each state to the applicable portions of multi-state risks, and continues to require submission of quarterly transaction reports.
Montana NRRA Implementing Legislation Authorizes Compact – Subject to Certain Conditions
On May 6, the Montana Governor signed legislation implementing certain provisions of the Non Admitted and Reinsurance Reform Act (NRRA). Notably, Montana's NRRA legislation authorizes the Commissioner to enter into an agreement with other states to collect and share premium taxes on multi-state risks, subject to certain conditions and limitations. In connection with Montana's NRRA efforts, NAPSLO provided draft legislation and amendments to the legislature, met with insurance department officials and hired a lobbyist to spearhead local efforts.
The NRRA mandates that beginning July 21, an insured's home state is the only state with jurisdiction over surplus lines transactions, and therefore, the only state that can require a tax be paid by the broker. In the wake of the NRRA, many states are working to bring their laws into compliance.
As amended, Montana's NRRA legislation provides that, following negotiated rulemaking, the Commissioner may enter into a multi-state agreement for collecting and sharing premium tax, such as Slimpact-lite or NIMA. The legislation mandates that the allocation methodology of any agreement entered into by the commissioner be based on readily available data and provide for simplicity and uniformity. Any multi-state agreement must also provide for uniform eligibility standards, uniform methods for allocating and reporting surplus lines insurance risk classifications, and generate positive revenues for Montana.
Montana's NRRA legislation also adopts the NRRA's mandate of exclusive home state regulation of surplus lines insurance and the NRRA's uniform eligibility requirements for U.S. domestic and non-domestic insurers. The legislation further incorporates the exempt commercial purchaser exemption from the NRRA.
The NRRA mandates that beginning July 21, an insured's home state is the only state with jurisdiction over surplus lines transactions, and therefore, the only state that can require a tax be paid by the broker. In the wake of the NRRA, many states are working to bring their laws into compliance.
As amended, Montana's NRRA legislation provides that, following negotiated rulemaking, the Commissioner may enter into a multi-state agreement for collecting and sharing premium tax, such as Slimpact-lite or NIMA. The legislation mandates that the allocation methodology of any agreement entered into by the commissioner be based on readily available data and provide for simplicity and uniformity. Any multi-state agreement must also provide for uniform eligibility standards, uniform methods for allocating and reporting surplus lines insurance risk classifications, and generate positive revenues for Montana.
Montana's NRRA legislation also adopts the NRRA's mandate of exclusive home state regulation of surplus lines insurance and the NRRA's uniform eligibility requirements for U.S. domestic and non-domestic insurers. The legislation further incorporates the exempt commercial purchaser exemption from the NRRA.
Thursday, May 12, 2011
Treasury Department Announces Formation of Federal Advisory Committee on Insurance
The U.S. Treasury Department this week announced the formation of a Federal Advisory Committee on Insurance (FACI) to inform and counsel the department and recently named Federal Insurance Office Director Michael McRaith on all matters related to insurance. This announcement comes on the heels of significant protest from industry and state regulators about the lack of insurance expertise and representation on the new Financial Stability Oversight Council (FSOC), the federal body charged with monitoring the U.S. financial system for potential systemic threats similar to those that brought the economy to the brink of collapse in 2008.
The FACI will include up to 15 members chosen from the spectrum of insurance expertise who will serve two year terms. Half of the committee will consist of state insurance regulators. The remaining members will be chosen from applicants to an upcoming Federal Register notice (a release date has not been announced). Submissions are required within 15 days of the notice’s posting. A Treasury press release suggests that the committee will include representatives from the “property and casualty insurance industry, the life insurance industry, the reinsurance industry, the agent and broker community, public advocates, and academia.”
The FACI is expected to meet with Director McRaith on a regular basis, and will likely advise him as he fulfills his duties on the FSOC, represents U.S. insurance interests internationally, and conducts what is expected to be a far-reaching study on the modernization of insurance regulation. A large number of applications can be expected, as this Committee will have direct access and influence on the decisions of the federal government’s primary source for insurance expertise and policy guidance.
The FACI will include up to 15 members chosen from the spectrum of insurance expertise who will serve two year terms. Half of the committee will consist of state insurance regulators. The remaining members will be chosen from applicants to an upcoming Federal Register notice
The FACI is expected to meet with Director McRaith on a regular basis, and will likely advise him as he fulfills his duties on the FSOC, represents U.S. insurance interests internationally, and conducts what is expected to be a far-reaching study on the modernization of insurance regulation. A large number of applications can be expected, as this Committee will have direct access and influence on the decisions of the federal government’s primary source for insurance expertise and policy guidance.
Treasury Department Announces Formation of Federal Advisory Committee on Insurance
The U.S. Treasury Department this week announced the formation of a Federal Advisory Committee on Insurance (FACI) to inform and counsel the department and recently named Federal Insurance Office Director Michael McRaith on all matters related to insurance. This announcement comes on the heels of significant protest from industry and state regulators about the lack of insurance expertise and representation on the new Financial Stability Oversight Council (FSOC), the federal body charged with monitoring the U.S. financial system for potential systemic threats similar to those that brought the economy to the brink of collapse in 2008.
The FACI will include up to 15 members chosen from the spectrum of insurance expertise who will serve two year terms. Half of the committee will consist of state insurance regulators. The remaining members will be chosen from applicants to an upcoming Federal Register notice (a release date has not been announced). Submissions are required within 15 days of the notice’s posting. A Treasury press release suggests that the committee will include representatives from the “property and casualty insurance industry, the life insurance industry, the reinsurance industry, the agent and broker community, public advocates, and academia.”
The FACI is expected to meet with Director McRaith on a regular basis, and will likely advise him as he fulfills his duties on the FSOC, represents U.S. insurance interests internationally, and conducts what is expected to be a far-reaching study on the modernization of insurance regulation. A large number of applications can be expected, as this Committee will have direct access and influence on the decisions of the federal government’s primary source for insurance expertise and policy guidance.
The FACI will include up to 15 members chosen from the spectrum of insurance expertise who will serve two year terms. Half of the committee will consist of state insurance regulators. The remaining members will be chosen from applicants to an upcoming Federal Register notice (a release date has not been announced). Submissions are required within 15 days of the notice’s posting. A Treasury press release suggests that the committee will include representatives from the “property and casualty insurance industry, the life insurance industry, the reinsurance industry, the agent and broker community, public advocates, and academia.”
The FACI is expected to meet with Director McRaith on a regular basis, and will likely advise him as he fulfills his duties on the FSOC, represents U.S. insurance interests internationally, and conducts what is expected to be a far-reaching study on the modernization of insurance regulation. A large number of applications can be expected, as this Committee will have direct access and influence on the decisions of the federal government’s primary source for insurance expertise and policy guidance.
Wednesday, May 11, 2011
Indiana Approves Bill Adopting SLIMPACT-lite Tax Sharing Agreement
The Indiana governor signed into law on Tuesday a bill which would adopt the SLIMPACT-lite tax sharing agreement.
Indiana is the 18th state to pass NonAdmitted and Reinsurance Reform Act (NRRA) implementation legislation during this session. In connection with the NRRA implementation efforts, NAPSLO provided draft legislation, and comments on the legislation and representatives of B&D Consulting testified at a committee hearing.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. As a result, states are working to bring their laws into compliance.
Indiana's bill adopts SLIMPACT-lite, which provides for the creation of a Compact Commission that would adopt rules on tax allocation, reporting, collection and distribution, and may adopt uniform insurer eligibility requirements. Indiana's bill provides for exclusive home state regulation of surplus lines compliance, however does not incorporate the NRRA's exempt commercial purchaser (ECP) exemption from state diligent search requirements.
As amended, the bill provides that if SLIMPACT does not take effect or becomes ineffective, the Indiana Department of Insurance has the authority to enter into contracts to implement the requirements of the NRRA, subject to certain restrictions. The DOI may not enter into such a contract (compact or multistate agreement) "that is related to reporting, payment, collection, or allocation of fees or taxes on nonadmitted insurance, unless the Indiana department of insurance has done all of the following: (1) Completed a fiscal analysis of the impact of the contract. (2) Studied the expected effect of the contract on Indiana's gross receipt of premium tax. (3) Reviewed whether the contract will create undue administrative burdens on the state of Indiana or surplus lines licensees. (4) Concluded that entering into the contract: (A) is in Indiana's financial best interest; and (B) is consistent with the requirements of the NRRA."
Indiana is the 18th state to pass NonAdmitted and Reinsurance Reform Act (NRRA) implementation legislation during this session. In connection with the NRRA implementation efforts, NAPSLO provided draft legislation, and comments on the legislation and representatives of B&D Consulting testified at a committee hearing.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. As a result, states are working to bring their laws into compliance.
Indiana's bill adopts SLIMPACT-lite, which provides for the creation of a Compact Commission that would adopt rules on tax allocation, reporting, collection and distribution, and may adopt uniform insurer eligibility requirements. Indiana's bill provides for exclusive home state regulation of surplus lines compliance, however does not incorporate the NRRA's exempt commercial purchaser (ECP) exemption from state diligent search requirements.
As amended, the bill provides that if SLIMPACT does not take effect or becomes ineffective, the Indiana Department of Insurance has the authority to enter into contracts to implement the requirements of the NRRA, subject to certain restrictions. The DOI may not enter into such a contract (compact or multistate agreement) "that is related to reporting, payment, collection, or allocation of fees or taxes on nonadmitted insurance, unless the Indiana department of insurance has done all of the following: (1) Completed a fiscal analysis of the impact of the contract. (2) Studied the expected effect of the contract on Indiana's gross receipt of premium tax. (3) Reviewed whether the contract will create undue administrative burdens on the state of Indiana or surplus lines licensees. (4) Concluded that entering into the contract: (A) is in Indiana's financial best interest; and (B) is consistent with the requirements of the NRRA."
Wednesday, May 04, 2011
Florida, Hawaii Legislatures Approve NRRA Compliance Bills; States Could Join Compact
Legislatures in Florida and Hawaii have approved bills intended to implement the Nonadmitted and Reinsurance Reform Act (NRRA) and the bills have been sent to the respective governors to be signed. Both bills would allow the states to join a tax compact.
Florida's bill, SB1816, would generally authorize the Department of Financial Services and the Office of Insurance Regulation to enter into an agreement with other states to share taxes. Hawaii's bill, HB1052, would allow the insurance commissioner to participate in tax sharing system.
NAPSLO worked with legislators in both states during the legislative session and was pleased to see the final legislative bills contained requirements for additional legislative oversight and involvement in connection with the decision to join a compact.
Legislation in 16 states has been signed into law and seven other states (including Hawaii and Florida) are awaiting action by their governor. More information on the various state actions is available on NAPSLO's website.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. As a result states are working to bring their laws into compliance.
Florida's bill, SB1816, would generally authorize the Department of Financial Services and the Office of Insurance Regulation to enter into an agreement with other states to share taxes. Hawaii's bill, HB1052, would allow the insurance commissioner to participate in tax sharing system.
NAPSLO worked with legislators in both states during the legislative session and was pleased to see the final legislative bills contained requirements for additional legislative oversight and involvement in connection with the decision to join a compact.
Legislation in 16 states has been signed into law and seven other states (including Hawaii and Florida) are awaiting action by their governor. More information on the various state actions is available on NAPSLO's website.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. As a result states are working to bring their laws into compliance.
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