The educational component of WSIA’s continued work on behalf of the surplus lines industry is a key part of the organization’s value position, and in the year to come several key issues will remain top-of-mind for members who strive to further the mission of E&S professionals.

NRRA implementation

WSIA continues to work with states to fully implement the NRRA in a uniform manner as envisioned by the NRRA. NIMA continues to move through the wind-down phase of its dissolution. The Surplus Lines Clearinghouse is accepting multistate return premium, additional payments and cancellation of endorsements through its anticipated wind-down by Sept. 30.

“The NRRA is the most important piece of legislation to impact the surplus lines industry in decades,” said Tim Chaix, WSIA Legislative Co-Chair and Vice President, R.E. Chaix & Associates Insurance Brokers Inc. in Irvine, Calif. “As a broker, I really felt the impact of the NRRA, especially in placing multistate risks. It has become much simpler to calculate and remit taxes. We are very close to having all states collect and retain surplus lines taxes based on their own surplus lines premium tax rate, regardless of where the risks reside.”

Only five states’ statutes, including Florida, Hawaii, Massachusetts, New Hampshire and Vermont still require surplus lines brokers to calculate and submit the surplus lines premium tax based on the state’s rate where the risks reside for a multistate policy. “I would like to see all five states tax 100% of a multistate policy based on their own state rate, but I believe we will get at least one or two of these five states to change this year — which I think will be a huge step towards uniformity in this category,” Chaix added.