NAMIC is Pleased with the House’s Reform Legislation for the Surplus Lines and Reinsurance Market

The decision by the House to pass H.R. 1065, the Nonadmitted and Reinsurance Reform of Act of 2007 unanimously was greeted with applause by the The National Association of Mutual Insurance Companies (NAMIC).

Published on June 26, 2007

“This bill will help policyholders that are vulnerable to natural catastrophes and terrorist attacks by eliminating unnecessary duplication of regulation,” said Justin Roth, NAMIC’s senior federal affairs director. “Many Florida homeowners, for example, have had to find wind coverage in the surplus lines marketplace due to recent hurricanes.”

The legislation would create a uniform system for taxing and regulating certain types of insurance products — known as surplus lines or nonadmitted insurance — by establishing national standards for how states may regulate, collect, and allocate taxes. The bill would also establish national standards for how states regulate reinsurance — often referred to as insurance for insurance companies.