In today's tax and regulatory environment, innovation is the name of the game.  Congress recognized that when it passed the Nonadmitted and Reinsurance Reform Act (NRRA) four years ago.  Two years later, the Non-Admitted Insurance Multi-State Association (NIMA) was created and today, its eight member states are seeing (enjoying) the enhanced revenue and greater savings efficiencies that our Surplus Lines Clearinghouse SLIP system has made a reality.

Yet, there are those with ulterior motives, who would disparage this growing success story.  In Arthur Postal's Legislative update: Taxation Uniformity remains critical issue (September 15, 2014 on PropertyCasualty360.com) the National Association of Surplus Lines Offices (NAPSLO) continued its role as a peddler of misinformation, using data that its own leadership has already been told is incomplete and incorrect.

There's nothing mysterious about what NIMA does.  Simply put, a state that becomes a NIMA member continues to collect the premium tax on home state surplus lines companies' premiums in their state.  Then, in exchange for sharing the premium tax collected on policies written by companies from other NIMA states, the state likewise receives a tax share from all those other NIMA states on policies written by companies from the state.   So not only does my state of South Dakota collect premium tax on our domiciled companies' policies written in South Dakota, but we also receive a tax share of those same companies' policies written in all the other NIMA member states.