Friday, December 30, 2011

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.

No comments: