On June 25, Senators Evan Bayh, D-Ind., and Mel Martinez, R-Fla., introduced S. 1363, the Nonadmitted and Reinsurance Reform Act of 2009. The legislation would modernize the regulation of non-admitted insurance and reinsurance markets. Senators Bill Nelson, D-Fla., and Mike Crapo, R-Idaho, cosponsored the legislation.
The Nonadmitted and Reinsurance Reform Act of 2009 would establish national standards for state regulation of the surplus lines and reinsurance markets, including a uniform system of premium taxation, elimination of duplicative compliance requirements for multi-state transactions, and direct access to the surplus lines market for large commercial insurance buyers. It also grants regulatory authority over most aspects of surplus lines insurance to the state in which the carrier is domiciled. Similar legislation has been introduced and unanimously passed in the House twice before, but never reached the Senate floor for a vote.
Companion legislation, H.R. 2571, was introduced in the House in late May, just prior to adjourning for the Memorial Day recess by Reps. Dennis Moore, D-Kan., and Scott Garrett, N.J. The proposal enjoys bipartisan support, with more than 19 additional representatives, including House Financial Services Committee Chairman Barney Frank, D-Mass., signing on as original co-sponsors of the legislation.
NAMIC, as part of the National Association of Professional Surplus Lines Offices coalition, continues to support the surplus lines legislation. We anticipate that the House legislation will be placed on the suspension calendar as early as the week of July 6th. On the Senate side, Senate Banking Committee Chairman Dodd has expressed his support for the legislation and would like to include it in the Senate regulatory reform vehicle.
Please direct questions to Marliss McManus.