Last week, Senate Banking Committee Chairman Christopher J. Dodd, D-Conn., released a sweeping overhaul of financial services regulatory reform. Within the 1,136 pages was the Nonadmitted and Reinsurance Reform Act, which was introduced as a stand-alone piece of legislation by Sens. Evan Bayh, D-Ind., Bill Nelson, D-Fla., and Mike Crapo, R-Idaho.
The provision would modernize the regulation of non-admitted insurance and reinsurance markets. Specifically, 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.
Companion legislation, H.R. 2571, has been introduced in the House of Representatives by Reps. Dennis Moore, D-Kan., and Scott Garrett, R-N.J. The legislation has already been favorably approved by the Financial Services Committee and has been placed on the suspension calendar which is reserved for non-controversial pieces of legislation.
Similar legislation has been introduced and unanimously passed in the House twice before, but never reached the Senate floor for a vote.
NAMIC supports legislation to reform surplus lines regulation to significantly increase the level of purchasing efficiency for all those involved in the surplus lines transaction from the insurance companies to the consumers. This legislation would be particularly helpful to those buyers finding limited availability of insurance for their specific risks and to those businesses and individuals located in areas ravaged by natural disasters which have limited the amount of insurance offered by standard insurance companies.
Please direct questions to Marliss McManus.
Posted: Tuesday, November 17, 2009 12:00:00 AM. Modified: Tuesday, November 17, 2009 2:03:30 PM.
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