In the wake of New York's decision not to join a nationwide compact on sharing of surplus-lines taxes, industry officials believe such compacts may be doomed.
Richard Bouhan, executive director of the National Association of Professional Surplus Lines Offices, voices such concern after New York passed legislation to bring its laws into compliance with the Nonadmitted and Reinsurance Reform Act passed by Congress last July. The New York legislation, recently signed into law, removes provisions that would have authorized the state to join a tax compact.
Bouhan says California is likely to take similar action, and it is unclear whether Florida and Texas will decide to pass legislation implementing the revised Surplus Lines Insurance Multistate Compliance Compact, referred to as "SLIMPACT-Lite."
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