Nebraska insurance regulators have notified the governing committee of the Nonadmitted Insurance Multistate Agreement (NIMA) that the state intends to withdraw from the agreement effective March 5, 2012.
Bruce Ramge, director of the Nebraska Department of Insurance, on Jan. 4 sent a letter to Mississippi Insurance Commissioner Mike Chaney, chairman of the NIMA governance committee, indicating Nebraska’s intention to withdraw as a participating state.
A bulletin released by Nebraska DOI explained that the timeframe for the collection and allocation of nonadmitted insurance premium taxes by a clearinghouse to be created by NIMA conflicts with timelines set by Nebraska law.
“While the proposed plan of operation for the Cleainghouse allowed for the collection and allocation of nonadmitted insurance premium taxes, the time frame offered to surplus lines brokers and insureds independently procuring nonadmitted insurance to report all such business transacted during a designated quarter directly conflicted with Nebraska statutory provisions,” the bulletin said.
The bulletin further stated that “all quarterly surplus lines filings and tax payments shall be filed with the Department” until further notice.
Source: Nebraska Department of Insurance
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