Louisiana Issues Bulletin Regarding Change in Effective Date of NIMA

Bulletin 2011-04 was issued by the Louisiana Department of Insurance on December 29, 2011, to provide updated guidance to surplus lines insurance brokers concerning the Nonadmitted Multi-State Agreement (NIMA) and the requirements for reporting, payment, collection and allocation of taxes for multi-state policies.

This additional guidance was necessary as a result of recent amendments to NIMA, and because the NIMA clearinghouse will not be operational before July 1, 2012.

Therefore, in Louisiana, until further notice, the tax allocation provisions of NIMA will not apply. For any multi-state surplus lines policy with an effective date on or after July 21, 2011, and for which Louisiana is the home state of the insured, all brokers, producers or independently procuring insureds are instructed to collect and remit surplus lines premium taxes only on that portion of the premium allocable to Louisiana.

Louisiana’s December 29, 2011 bulletin can be found on the Louisiana Department of Insurance website.

Nevada Issues Updated Statement Regarding Change in Effective Date of NIMA

In a statement from the Nevada Division of Insurance on December 22, 2011, the Division provided updated guidance to surplus lines insurance producers concerning the Nonadmitted Multi-State Agreement (NIMA) and the requirements for reporting, payment, collection and allocation of taxes and fees for multi-state policies for the first and second quarters of 2012.

The additional guidance was necessary because it is apparent NIMA clearinghouse will not be operational before July 1, 2012. In an emergency meeting on December 20, 2011, NIMA Participating States amended Paragraph 24 of the NIMA Agreement to change the effective date of the premium tax allocation schedule from January 1, 2012 to July 1, 2012, which defers the applicability of multi-state premium tax allocations and the NIMA allocation schedule until July 1, 2012.

Therefore, in Nevada, for the first and second quarters of 2012, the tax allocation provisions of NIMA will not apply, and the taxes and fees due under a multi-state policy would be remitted entirely to the home state of the insured, pursuant to that state’s statutory and regulatory requirements.

Nevada’s Statement dated December 22, 2011 can be found on the Nevada Surplus Lines Association website.

Mississippi Announces Change in Effective Date of the NIMA Premium Tax Allocation Schedule from January 1, 2012 to July 1, 2012

Bulletin 2011-11 was issued by the Mississippi Insurance Department on December 22, 2011, to provide guidance to surplus lines insurance producers concerning NIMA and the requirements for reporting, payment, collection and allocation of taxes and fees for multi-state policies for the first and second quarters of 2012.

The additional guidance was necessary because it is apparent the NIMA clearinghouse cannot be operational before July 1, 2012. In an emergency meeting on December 20, 2011, the NIMA Participating States amended Paragraph 24 of the NIMA Agreement to change the effective date of the premium tax allocation schedule from January 1, 2012 to July 1, 2012, which defers the applicability of multi-state premium tax allocations and the NIMA allocation schedule until July 1, 2012.

Therefore, for the first and second quarters of 2012, the tax allocation provisions of NIMA will not apply, and the taxes and fees due under a multi-state policy would be remitted entirely to the home state of the insured, pursuant to that state’s statutory and regulatory requirements.

Mississippi’s Bulletin 2011-11 can be found on the Mississippi Insurance Department website at http://www.mid.state.ms.us/bulletins/201111bul.pdf.

Texas Insurance Department Issues Bulletin on Fees on Surplus Lines Policies

The Texas Department of Insurance (TDI) has issued a bulletin to inform surplus lines agents about new requirements which include late-filing fees, a safe harbor provision, and possible enforcement actions. The department is offering a December 2011 settlement program for resolving pending disciplinary matters regarding late-filed surplus lines policies.

Texas Insurance Code requires a surplus lines agent to file a new or renewal surplus lines policy with the Surplus Lines Stamping Office of Texas within 60 days of the date a policy is issued or becomes effective. The new law provides two regulatory options (fees and penalties) for surplus lines agents who have filed policies late. The official bulletin lists the fee schedule. For more information about the calculation or remittance of fees,  contact Kathy Wilcox at the insurance department at (512) 322-3535 or Kathy.Wilcox@tdi.state.tx.us.

Until January 1, 2012, agents may self-report late-filed policies with effective or issue dates before January 1, 2010, and pay a $50 fee per policy. This provision does not apply to policies that have already been listed on an SLSOT late-filers report.

To help resolve pending surplus lines late-filed policies disciplinary matters, TDI’s Enforcement Section will offer special incentives for settlement during December 2011. Staff will contact agents with pending disciplinary matters to offer resolution through Consent Orders.

For more information or questions about the settlement program, please contact Stephen Chen at 512-322-3428 or Stephen.Chen@tdi.state.tx.us. After the December 2011 Settlement Program, penalties for late filers will be assessed based on the guidelines in the Texas Insurance Code Section.

NAPSLO Submits Comments to Federal Insurance Office

NAPSLO today submitted its response to the Federal Insurance Office (FIO) request for comment for “Public Input on the Report to Congress on How to Modernize and Improve the System of Insurance Regulation in the United States.” To review a copy of NAPSLO’s comments, click here.

NAPSLO Notes Passing of Daniel C. O'Leary, III

Daniel C. O'Leary, III, of Shelly, Middlebrooks & O'Leary, Inc., passed away on December 13. He was a respected and loving father, husband, mentor and friend, as well as a successful business and community leader in Jacksonville.

He was a lifetime resident of Jacksonville and went to college at Gordon College and the University of Florida. After college he served as a commissioned officer in the US Army, then followed his father into the insurance business with Shelly, Middlebrooks and O'Leary. Dan stayed with the company all his working life, becoming Chairman in 1985 and serving in that capacity until his passing.

Services will be held at 11:00 a.m. Saturday, December 17, 2011, in St. Matthews Catholic Church, 1773 Blanding Boulevard. There will be a reception at the church following the service. Visitation will be from 6:00 to 8:00 p.m. on Friday, December 16, at the Hardage-Giddens Oaklawn Chapel, 4801 Hendricks Ave., Jacksonville. The family suggests donations in Dan's memory to the Paul Harris foundation of the Riverside Rotary Club.

Dan is survived by his loving wife of 36 years, Mary Frances Perret O'Leary, his daughter Erin O'Leary, his son Conor O'Leary, daughter in-law Shannon Sheridan O'Leary, granddaughter Eliza O'Leary, his mother, Mrs. Daniel C. O'Leary, Jr. (Bobbie), his sister Robin O'Leary and his two brothers, Timothy and Patrick O'Leary.

NAPSLO Mid-Year Registration Open

Online registration is now open for the 2012 NAPSLO Mid-Year Leadership Forum, February 29-March 2 at the Fairmont Scottsdale Princess Resort, in Scottsdale, Arizona.

NAPSLO members can register for the meeting through the REGISTER page at the Mid-Year website.

The registration fee for delegates is $825 and the fee for spouses is $425. Registration fees will increase on January 20 to $925 and $475. At the end of the registration process there will be a link for attendees to reserve a hotel room at the Fairmont Scottsdale. Rooms are $329 plus a $2 daily
housekeeping fee.

Mid-Year meeting programs get underway on Wednesday, February 29 at 6:00 p.m. with the Opening Reception. Thursday is left open for attendees to meet with other members.

On Friday morning there will be a leadership program, and a short legislative program on the NonAdmitted and Reinsurance Reform Act (NRRA). The leadership program, Leading Flawless Execution from the Top, will be presented by Afterburner, a cutting-edge management training team
composed of a select group of our nation's top military fighter pilots.

Following the programs on Friday, the annual Derek Hughes/NAPSLO Educational Foundation Golf Invitational will take place that afternoon at the Grayhawk Golf Course. Attendees can register for the tournament online.

The Mid-Year programs end on Friday night with a cocktail hour at 6:00 p.m. to allow attendees to network with other attendees prior to dinner.