A recent Insurance
Journal article discusses the continued differences between the few states that
participate in tax sharing as part of the Non-Admitted Insurance Multi-State
Agreement (NIMA) versus the majority of states that retain 100% of the surplus
lines taxes collected as the home state. NAPSLO’s recent
analysis illustrating the insignificant financial impact, especially when
compared to the burden and increased costs incurred by brokers and consumers,
was highlighted in the article. NAPSLO remains hopeful that additional data
from NIMA states will be made available for further analysis, but remains confident
additional data will support our initial findings.
NAPSLO continues to believe that the only viable and uniform national
solution for surplus lines premium taxation is the home state approach and that
all states should tax 100% of the surplus lines premium on a policy at their
home state rate and retain 100% of the taxes they collect.
