Posted on 12 Feb 2009
House representatives Dennis Moore (D-KS) and Scott Garrett (R-NJ) have announced plans to reintroduce a measure soon that would set national standards for how states regulate the surplus lines market and reinsurance as well as create a uniform system of surplus lines premium tax allocation and remittance. The measure, the Nonadmitted and Reinsurance Reform Act, had won House approval twice before but never reached the Senate floor.
The measure would make accessing the surplus lines market easier for risk managers and create a uniform system of surplus lines premium tax allocation and remittance. It would also ease certain regulatory burdens on reinsurers.
Kansas City, Missouri-based National Association of Professional Surplus Lines Offices Ltd. welcomed the pending introduction of the bill.
“We believe that the bill would make the surplus lines marketplace more efficient by facilitating the payment of surplus lines premium taxes and eliminating unnecessary duplicative compliance requirements on surplus lines multi-state risks,” NAPSLO President John F. Wood III said in a statement. “NAPSLO is pleased to see Rep. Garrett and Rep. Moore take the lead to have the bill introduced in the House of Representatives and we are hopeful the bill will soon be introduced in the Senate,” said Mr. Wood, who is also president of Specialty Risk Associates of Shreveport, LA.