Wednesday, June 29, 2011

NAPSLO Offering State-by-State Review of NRRA Compliance Legislation on Website

NAPSLO has added to its website a state-by-state review of legislation passed at the state level during the past few months to bring states into compliance with the Nonadmitted and Reinsurance Reform Act (NRRA).

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. Also, many states have passed laws based on NRRA with differing requirements and effective dates.

Earlier this year NAPSLO put together a new section of the website - New Surplus Lines Law - which included a section reviewing legislation under consideration at the state level. With more than 30 states passing legislation NAPSLO has now added a section reviewing the laws enacted by each state.

In the State Update Review section there is a table listing all of the states and links to reviews to most of the legislation completed. Additional states are being added as the review process of the legislation is completed.

The pages include information on state bulletins/regulations/rules; the status of joining compacts or other tax sharing agreements; the new laws definition of "home state"; exempt commercial purchaser (ECP) status; eligibility information; tax reporting status; tax processing fee information; and contact information for the state insurance department or stamping office.

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