Legislation aimed at making access to the surplus lines market more efficient and help standardize state insurance regulation has been introduced again in the U.S. House of Representatives.
Reps. Dennis Moore, D-Kan., and Scott Garrett, R-N.J., members of the House Committee on Financial Services, reintroduced the Non-Admitted and Reinsurance Reform Act of 2009 (NRRA), or HR 2571. The measure has 20 other cosponsors.
Senators Evan Bayh, D-Ind., and Mel Martinez, R-Fla., members of the Senate Committee on Banking, Housing and Urban Affairs, have also announced that they plan on introducing a version of the bill in the Senate.
The bill would establish national standards for how states regulate the surplus lines market and reinsurance, and would create a uniform system of surplus lines premium tax allocation and remittance, one-state compliance on multi-state surplus lines risks, and direct access to the surplus lines market for sophisticated commercial purchasers.
The bill also would reduce overlapping, multiple-state regulation of both reinsurer financial conditions and credit-for-reinsurance on the balance sheets of ceding insurers, supporters of the legislation say.
The insurance industry remains virtually unanimous in its support of the bill.
Topics Legislation Excess Surplus Reinsurance
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