What’s In the NRRA?

Reporting, Payment, and Allocation of Premium Taxes: Only the home state of insured may require premium tax payment. States may enter into a compact or other procedures to allocate among the states taxes paid to home state. Congress intends for each state to adopt nationwide uniform requirements, forms, and procedures, such as an interstate compact, providing for the reporting, payment, collection, and allocation of taxes. Insured’s home state may require agents and insureds who have independently procured insurance to annually file tax allocation reports with the home state. Implemented by July 21, 2011.

Regulation of Nonadmitted Insurance by Insured’s Home State: Placement of nonadmitted insurance is subject to statutory and regulatory requirements solely of insured’s home state. Only insured’s home state may require a surplus lines agent to be licensed in order to sell, solicit, or negotiate nonadmitted insurance. Any law, regulation, provision, or action of any state applying to nonadmitted insurance sold to, solicited by, or negotiated with an insured whose home state is another state is preempted. Implemented by July 21, 2011.

Participation in National Producer Database: A state may not collect fees relating to licensing of surplus lines agents unless the state has laws or regulations providing for participation by the state in the national producer database of the NAIC, or other equivalent uniform national database, for the licensing of surplus lines agents. Two years after enactment.

Uniform Standards for Surplus Lines Eligibility: A state may not impose eligibility requirements on a U.S. nonadmitted insurer, except in conformance with the requirements of sections 5A(2) and 5C(2)(a) of the NAIC Non-Admitted Insurance Model Act, unless the state has adopted nationwide uniform requirements, forms, and procedures that include alternative nationwide uniform eligibility requirements. A state may not prohibit a surplus lines agent from procuring nonadmitted insurance from a non-U.S. insurer listed on the Quarterly Listing of Alien Insurers maintained by the NAIC. Implemented by July 21, 2011.

Streamlined Application for Commercial Purchasers: A surplus lines agent procuring nonadmitted insurance for an exempt commercial purchaser is not required to satisfy state diligent effort requirements. Implemented by July 21, 2011.

GAO Study of Nonadmitted Insurance Market: U.S. Comptroller General to submit a report to Congress on the effect of the bill and surplus lines market within 30 months.

Source: Surplus Lines Stamping Office of Texas

Topics USA Agencies Legislation Excess Surplus