Tuesday, January 10, 2012

Nebraska Withdraws from NIMA

The Nebraska Department of Insurance notified the Governance Committee of the Nonadmitted Insurance Multistate Agreement (NIMA) that it is withdrawing as a participatory state from NIMA effective March 5, 2012.

In a notice from the department, Nebraska said while a clearinghouse to be established under NIMA could collect and allocate surplus lines premiums taxes, the time frame offered to surplus lines brokers  and insureds independently procuring nonadmitted insurance to report all such business transacted during a designated quarter directly conflicted with Nebraska statutory provisions. As a result, the department said that all quarterly surplus lines filings and tax payments shall be filed with the department.

Nebraska was among 11 states (plus Puerto Rico) that had signed onto NIMA as a way to report, collect, allocate and distribute surplus lines tax revenues following the passage of the Nonadmitted and Reinsurance Reform Act (NRRA). Because of delays in establishing the clearinghouse, a number of the NIMA states have recently issued bulletins and clarifying guidance regarding the reporting and payment of taxes. All of the bulletins and clarifying guidance can found on the NAPSLO blog as they are released.

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