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.