Search
 

Will Florida’s Choice of NIMA Lead the Way?

In the great debate over NIMA and SLIMPACT, Florida has signed with NIMA. The program is designed to address the revenue reporting and sharing of non-admitted insurance premium tax on multi-state risks. Who else will stand with us?

By Joan E. Collier | Updated on June 27, 2011
In mid-June the Florida Office of Insurance Regulation (OIR) entered into a multi-agency Non-admitted Insurance Multi-State Agreement (NIMA) in keeping with the July 21 deadline for implementation of the Non-admitted and Reinsurance Reform Act of 2010 (NRRA).

President Barack Obama signed the NRRA into law on July 21, 2010, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The bill includes language to standardize the reporting, allocation, and payment of non-admitted insurance premium tax on multi-state risks. The NRRA grants the insured’s home state exclusive authority to regulate and tax surplus lines insurance that includes multi-jurisdictional boundaries. Additionally, the bill provides states the ability to enter into an agreement to collect and share premium taxes for these multi-state risks.

States that fail to adopt some means of tax allocation system will be subject to a single-state taxation that allows the home state to retain 100 percent of the tax on the gross premium effective July 21. (Without an agreement, Florida stood to lose an estimated $15 to $20 million per year in premium tax.)

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.