Florida Office of Insurance Regulation Announces Connecticut and Louisiana Are the Two Newest States to Join NIMA
Jul 13, 2011
The Florida Office of Insurance Regulation published the following news release on July 13, 2011:
Connecticut and Louisiana are the Two Newest States to Join NIMA
TALLAHASSEE, Fla. – The Members States of the Non-Admitted Insurance Multi-State Agreement (NIMA) coalition are proud to welcome two new states, Connecticut and Louisiana, to the group. Insurance Commissioner Thomas Leonardi and Commissioner of Revenue Services Kevin B. Sullivan signed on behalf of Connecticut, while Insurance Commissioner James Donelon signed the agreement on behalf of Louisiana. NIMA states now represent 19.5% of the surplus lines market according to 2009 data.
“I would like to congratulate my fellow commissioners from Connecticut and Louisiana for joining this coalition,” remarked Florida Insurance Commissioner, Kevin McCarty, “NIMA offers the most transparent and logical procedure for accomplishing the objectives of the federal financial overhaul to distribute surplus lines taxes in an equitable manner.”
NIMA is an agreement that provides a mechanism to report, collect, allocate and distribute surplus lines tax revenues consistent with the Non-Admitted and Reinsurance Reform Act (NRRA). The NRRA became part of the Dodd-Frank Wall Street Reform legislation passed in 2010 that allows only the home state to require premium tax payments for non-admitted insurance. Without this agreement, several states could potentially lose surplus lines tax revenues, and distortions in the marketplace could occur.
Florida, Hawaii and Mississippi were the founding members of NIMA. Several states have passed legislation and expressed interest in joining NIMA, but are prohibited from officially joining until the July 21, 2011 deadline established in the federal legislation. NIMA member states plan to wait until after the July 21 deadline to elect officers and select a clearinghouse to administer the funds. The State of Florida has agreed to temporarily house the NIMA website, which will contain the signature documents from member states, and resources regarding NIMA including its advantages over the competing SLIMPACT alternative.