Twelve jurisdictions (AK, CT, FL, HI, LA, MS, NE, NV, PR, SD, UT and WY) that have formed a clearinghouse group to streamline collection and allocation of surplus lines premium taxes are proceeding with their plan to implement the clearinghouse. The group named Mississippi Insurance Commissioner Mike Chaney to chair the governing committee of the Nonadmitted Insurance Multi-State Agreement (“NIMA”). Click here to view a copy of NIMA.
The National Association of Insurance Commissioners supports NIMA. NIMA is intended to allow states to report, collect, allocate, and distribute surplus lines tax revenues in compliance with the Non-Admitted and Reinsurance Reform Act (“NRRA”). As we have previously reported [link to all NRRA posts], the NRRA is part of the Dodd-Frank Wall Street Reform legislation and is intended to create more uniformity in the regulation of surplus lines insurance.