Nevada Joins Multistate Insurance Tax Sharing Plan

The Nevada State Board of Examiners has approved a plan to have Nevada join into a program with other states to share insurance tax revenues, according to Nevada newspapers.

The Board took the action on Wednesday, with the support of the state’s insurance commissioner, Brett J. Barratt, who told the Board the state would benefit under the program.

The program, Non-admitted Insurance Multi-State Agreement (NIMA), which covers specifically taxes paid for surplus lines, was set up by the National Association of Insurance Commissioners. It allows a state to collect insurance premium taxes paid by a company doing business in their state but insured by an out-of-state company.

Barratt told the Board of Examiners that Nevada would come out ahead by about $2 million annually by joining the agreement.

Barratt said about 20 states are expected to join the program right away.