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.