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.
No comments:
Post a Comment