On May 21, 2009, three important pieces of insurance industry legislation, which failed to pass in previous years, were reintroduced in the United States House of Representatives:
Representative David Scott (D-Ga.) introduced the National Association of Registered Agents and Brokers Reform Act of 2009 (H.R. 2554 or NARAB). The bill, like its predecessor in 2008 (H.R. 5611) that we previously discussed here, seeks to establish a national association to provide multi-state licensing to insurance producers. The text of the bill is not yet available and it is currently being reviewed by the House Finance Services Committee.
Surplus Lines and Reinsurance Reform
Representatives Dennis Moore (D-Kan.) introduced the Nonadmitted and Reinsurance Reform Act of 2009 (H.R. 2571). The bill, like its predecessor in 2007 (H.R. 1065) that we discussed here, would streamline the regulation of nonadmitted insurance and reinsurance. While the text of the bill is not yet available, media sources report that the bill, as currently contemplated, would set a uniform system of surplus lines premium tax allocation and remittance by subjecting nonadmitted insurers to the premium taxes of the policyholder's home state. As for reinsurers, industry trade groups report that the bill proposes, in most instances, to have reinsurers subject only to the solvency rules of their state of domicile. The bill has been referred to the House Financial Services Committee and the House Judiciary Committee.
Office of Insurance Information
Representative Paul Kanjorski (D-Pa.) introduced the Insurance Information Act of 2009 (H.R. 2609). The bill, like its predecessor, in 2008 (H.R. 5840) that we discussed here, will establish an Office of Insurance Information (the “OII”) in the Department of the Treasury. While the text of the bill is not yet available, according to news reports, the bill would allow the OII to collect and study insurance data and advise the Treasury and Congress on domestic and international policy-making regarding insurance. Also per recent media reports, it is contemplated that the bill will establish an advisory council of regulators and consumer groups to inform the leader of the OII. The bill is currently being reviewed by the House Finance Services Committee.