NU Online News Service, July 22, 2:46 p.m. EDT
Illinois has become the latest large state to adopt a regulation to implement the federal surplus lines reform and modernization law that doesn't mandate it share revenues with other states.
Through a bulletin issued Thursday, Illinois said it will tax 100 percent of the premiums for multistate policies "and is not currently participating in any tax-allocation agreement."
At the same time, the National Association of Insurance Commissioners (NAIC) announces that four states and Puerto Rico have joined the Nonadmitted Insurance Multistate Agreement (NIMA) model endorsed by the NAIC.
The new members of NIMA include Nebraska, Nevada, Utah and Wyoming. It brings to 10 the number of states and territories that have embraced NIMA, constituting 21.6 percent of the surplus lines market.
The NIMA participants now include Connecticut, Florida, Hawaii, Mississippi, Nebraska, Nevada, Puerto Rico, Louisiana, South Dakota, Utah and Wyoming.
Nine states have joined the Surplus Lines Insurance Multistate Compliance Compact (SLIMPACT), which the industry supports because it creates a mechanism or clearing house that would ensure that all premium taxes get to the right state.
Illinois joins California and Texas in enacting laws that bring state codes in line with the Nonadmitted and Reinsurance Reform Act (NRRA) but don't require or establish a mechanism for sharing premiums.
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