THE NONADMITTED INSURANCE AND REINSURANCE REFORM ACT OF 2007 (HR 1065)

The bill would establish national standards for how states regulate the surplus lines market and reinsurance.

HR 1065 creates:

• a uniform system of premium tax allocation and remittance for surplus lines premium taxes;
• uniform national standards for surplus lines insurer eligibility;
• one-state compliance on multi-state surplus lines risks;
• direct access to the surplus lines market for sophisticated commercial purchasers;
• more efficiency in licensing surplus lines brokers through use of a national data base, and;
• authority for states to enter into a compact or create procedures to allocate surplus lines premium tax among themselves.

The bill also contains reinsurance provisions which charge the ceding insurer’s home state regulator with making the so-called “credit for reinsurance” determinations. It also would prohibit state insurance regulators from applying their laws to reinsurance agreements of ceding insurers domiciled in other states.