National Conference of Insurance Legislators Adopts SLIMPACT-Lite to Address Dodd-Frank Surplus Lines Mandates
Nov 22, 2010
Attending legislators at the November 18-21 National Conference of Insurance Legislators (“NCOIL”) 2010 Annual Meeting adopted a “slimmed-down” version of the Surplus Lines Insurance Multi-State Compliance Compact after it was approved on November 18 by NCOIL’s State-Federal Relations Committee.
Dubbed “SLIMPACT-Lite,” the proposal would authorize a governing commission to establish surplus lines tax allocation formulas, uniform payment methods and reporting requirements, foreign insurer eligibility requirements, and a single policyholder notice, among other provisions. To streamline taxation, it would require a state to create a single tax rate for surplus lines insurance, allow states to charge their own rates on multi-state risks and set uniform payment dates.
Meanwhile, the National Association of Insurance Commissioners (“NAIC”) continues discussions on its proposed Nonadmitted Insurance Multi-State Agreement, which also seeks to implement state-based solutions that would address surplus lines reform mandated by the Non-admitted and Reinsurance Reform Act in Title V of H.R. 4173, known as the Dodd-Frank Act of 2010 (“Dodd-Frank”).
While the actions of the NCOIL and the NAIC are not binding, each of the individual states ultimately will need to review and separately adopt a position to address the surplus lines provisions of Dodd-Frank.
NCOIL’s past president, Rhode Island State Representative Brian P. Kennedy, said that he expected resolutions endorsing SLIMPACT-Lite to be considered at upcoming meetings of the Council of State Governments and the National Conference of State Legislatures, respectively.
NCOIL’s news release on the adoption of SLIMPACT-Lite is attached for review.
Should you have any questions or comments, please contact Colodny Fass.