NAPSLO Daily News - October 10, 2011

DAILY NE WS DAILY NE WS

NAPSLO Welcomes Members to 2011 Annual Convention

nrra: an overview & Status Update on This Critical Legislation

By Letha Heaton

Three years after one of the biggest economic down- turns in decades, NAPSLO is pleased to welcome nearly 3,400 people back to San Diego and the

2011 NAPSLO Annual Convention. Depending on the number of on-site registrations, this could set a record for NAPSLO convention registration.

This is quite a change from 2008 when it appeared the economy was in free fall. While we may have put those days behind us, it is important to learn from the past and this year’s guest speaker will be able to put into perspective what took place in 2008.

Best-selling author Michael Lewis, who gained fame with Liar’s Poker, examines the events that led up to the 2008 crash in his

2010 book, The Big Short. Lewis will present the Derek Hughes/ NAPSLO Educational Foundation Lecture Series presentation on Wednesday, October 12 at 9: 15 a.m. He is also in the news these days as another of his books, Moneyball,

CoMPe Ting CoMPaCTS

The positive effect of the NRRA becoming the law of the land is that the industry “will see a system where there is one-state compliance, one-state taxation, national standards for company eligibility, and national exempt-commercial-purchaser rules,” says Richard Bouhan, who was NAPSLO’s executive director until mid-September and who is staying on through June of next year to assist with legislative issues, such as NRRA.

But the states are divided into three different camps on the mechanism to share premium taxes between the insured’s home state and other states where the risk is insured.

One of the options is the Surplus Lines Multistate Compliance Compact, or

welcome continued on page 4 A

By Arthur D. Postal

While the brave new orld of uniform state regulation of the non-admitted insurance market finally dawned July 21, the details of its implementation are proving to be a bit devilish.

The Nonadmitted and Reinsurance Reform Act (NRRA), a part of the 2010 Dodd-Frank Act, became effective July 21.

It was designed to modernize and reform regulation of the non-admitted industry by mandating that the insured’s home state will be the only state with jurisdiction over multistate, surplus-lines transactions—and the only state that can require a tax be paid by the broker.

Passage of the bill was the culmination of an eight-year effort by the non-admitted industry—but there is still much work to be done before the intended benefits of the law are fully realized.

nrra continued on page 4 A

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