NRRA—and [its stipulation that]
only the home state regulates
the transaction, is a significant
step forward for our business,”
Halderman says. “While we
work our way through the tran-
sition period, especially with
respect to allocation, there will be
problems that we will have to deal
with—but we should not lose sight
of the significant plus.”
He says that the “significant
plus” is that before July 21, in a
home-state transaction, the indus-
try had to deal with the separate
and conflicting laws of every state
in which there was an exposure
insured. As of July 21, Halderman
says thanks to NRRA, “it is only
the laws and rules of one state that
apply to any given transaction.”
He adds: “Prior to passage of
NRRA, there were conflicting state
laws that could be applicable to one
transaction, making it impossible
to comply with all the applicable
rules and laws.
“Certainly,” Halderman continues, “elimination of that problem
makes things easier and less costly.
Most importantly, it allows us to
more effectively utilize the non-admitted marketplace on behalf of
our clients.”
SLIMPACT, which currently has
nine states signed on to it. Another
is the Nonadmitted Insurance
Multistate Agreement, or NIMA,
which has the backing of 11 states
and Puerto Rico, according to Rep.
George Keiser, R-N.D., president
of the National Conference of
Insurance Legislators (NCOIL).
A third is where individual
states have passed laws or imposed
rules that are silent on sharing
revenues. These include California,
Texas and Illinois.
Hank Halderman, co-chair of
the NAPSLO legislation commit-
tee, says that it is “a good sign that
virtually all states have taken steps
to conform to the NRRA or to
acknowledge its pre-emption.”
He said that means that the “core
element of NRRA has been incorpo-
rated into state laws and rules.”
But, he acknowledges that in the
premium-taxes-sharing area, “there is
a far amount of inconsistency.”
And, that inconsistency, he says,
creates confusion and dislocation.
2 - SLIMPACT bill
introduced in New York
after NRRA bill
approved.
3 - Bill allows
Ohio commissioner
to join SLIMPACT.
1- Texas comptroller
has authority to
join compact
based on 2007 law.
4 - Illinois issued bulletin
to tax 100% of premium
if Illinois is home state.
5 - Legislation allowed state
to join NIMA or other compact.
States signed NIMA agreement.
Adjourned, no action taken.
No bill under consideration.
More than one compact authorized.
SLIMPACT-approved state.
Signed NIMA agreement
NRRA only, no approval of compact.
Puerto Rico
SigniFiCan T PLUSeS—anD
SerioUS ProBLeMS
“The general passage of
But Nicole Allen, senior vice
president, strategic resources, for
the Council of Insurance Agents
& Brokers (the Council), argues, “I
don’t think that the current envi-
ronment, where there are basically
three methods of compliance with
NRRA, can continue.” She says it is
just “not sustainable.”
Allen adds, “I hope that the
states involved in the SLIMPACT
and NIMA agreements can come
together on a common allocation
formula and the use of a common
clearinghouse, and we are encour-
A weLCoMe continued from page 1
was recently released as a major
motion picture and a new book,
Boomerang, has just been published. I expect his presentation will
be extremely interesting and I hope
you will be able to attend.
NAPSLO’s programs on
Wednesday also will include a
tribute to Richard Bouhan, who
is retiring after 30 years with
NAPSLO. The recognition will
take place as part of my address to
the membership at 9:00 a.m. on
Wednesday.
Richard joined NAPSLO in
1981 as government relations
director and served as executive
director since 1987. He has played
an important role in NAPSLO’s
success over the years and I am
pleased to recognize Dick and his
efforts.
And of course on Sept 12,
Brady R. Kelley joined NAPSLO as
our new executive director.
Our traditional awards pre-
sentations also will occur on
Wednesday, and the Associate in
Surplus Lines Insurance (ASLI)
conferees, NAPSLO summer
interns, and our education program
will be recognized.
aging those states to do that.”
But, she says, “Who knows?”
The states could decide at some
point that they’ll go the route that
some of the bigger states such as
California and Illinois are taking—
retaining 100 percent of the taxes
for themselves.
“That would certainly be the
easiest method for our members
to comply with the NRRA,” Allen
asserts.
“We supported NRRA because
the complexity of the surplus-lines
regulatory system made it nearly
impossible for our members to
ensure they were in compliance
with all the appropriate laws and
regulations,” Allen says.
“And we do now have a much
more streamlined system. And
while there will be some bumps in
the implementation, the surplus-
lines marketplace will ultimately
be the better from enactment of
NRRA,” Allen says.
THe Ken TUCKY CoMProMiSe
State regulators who support
SLIMPACT are coalescing behind a
compromise method proposed by
Kentucky as the preferred means
of allocating premium taxes to the
states in the most equitable manner.
David Leonard, NAPSLO leg-
islation co-chairman, says, “The
Kentucky proposal presents a work-
able methodology that would be a
vast improvement over other tax
methodologies under discussion,
and we hope that other state groups
will also adopt the proposal.”
Allen says she doesn’t have
