NAIC tries to undercut surplus lines reform

On Jul 21, 2011, the surplus lines reforms in the Nonadmitted and Reinsurance Reform Act (NRRA) become effective. This legislation holds the promise of streamlining and simplifying access and taxation of the surplus lines market and creating efficiencies for insureds, retail agents and brokers, surplus lines wholesalers and MGAs. Although surplus lines tax-sharing compact called Surplus Lines Multistate Compliance Compact (SLIMPACT) already had been developed by a group of industry representatives and regulators and endorsed by the National Conference of Insurance Legislators, the National Association of Insurance Commissioners rejected SLIMPACT in favor of its own tax only compact/agreement called NIMA (Nonadmitted Insurance Multistate Compact).