Florida Surplus Lines Service Office Executive Committee Amends South Dakota Single State Contract for Board Approval
Dec 5, 2012
The Florida Surplus Lines Service Office (“FSLSO”) Board of Governors Executive Committee met yesterday, December 4, 2012, to discuss a Single State Contract (“Contract”) and Statement of Work that has been agreed upon with South Dakota.
South Dakota has adopted the Nonadmitted Insurance Multi-State Agreement (“NIMA”), a cooperative agreement to report, collect, allocate and distribute surplus lines tax revenues consistent with the Nonadmitted and Reinsurance Reform Act of 2010. Among its services, the FSLSO provides the platform utilized by the Surplus Lines Clearinghouse that administers the filing, assessment and distribution of surplus lines insurance premium taxes for NIMA states. The other NIMA-participating states currently include Florida, Louisiana, Utah, Wyoming and the U.S. territory of Puerto Rico.
Discussion had taken place at a July 25, 2012 meeting of the FSLSO Board of Governors regarding interest among certain NIMA-participating states in entering into separate agreements with the FSLSO for the provision of tax reporting and collection services related to single-state surplus lines policies.
At its meeting yesterday, the Executive Committee discussed several amendments to the proposed Contract, which incorporates provisions of NIMA. Because they were inapplicable in the context of single-state reporting and taxation for South Dakota, the definitions of “home state” and “state” were removed from the Contract.
Language was added regarding the Florida Department of Financial Services and Office of Insurance Regulation. Other provisions of the Contract were changed to comply with South Dakota law, as well as to provide that any litigation that may arise in connection with the Contract will take place in South Dakota. South Dakota representatives also requested a provision demonstrating that the FSLSO carries adequate insurance.
The Contract will afford two opportunities to renew on a two-year basis.
The amended Contact and Statement of Work will be presented to the full FSLSO Board of Governors for approval.
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