SLIMPACT

In order to get the new SLIMPACT Commission up and running in July, The Council of State Governments (CSG), the National Conference of Insurance Legislators (NCOIL), and the National Conference of State Legislatures (NCSL) will be hosting a series of conference calls beginning Friday, June 24. The purpose of the Webinars is to review and tentatively approve draft SLIMPACT bylaws, and an initial draft rule to adopt, amend, and repeal Commission rules.   The draft bylaws and rule, which can be found by clicking here, are based on the Interstate Insurance Product Regulation Compact (IIPRC), much as SLIMPACT itself was based on the IIPRC structure. 

With the additions of both Vermont and Rhode Island, the Surplus Lines Insurance Multi-state Compliance Compact (SLIMPACT) has now reached seven member states in one legislative session.  Legislation has also been sent to the Governor’s desk in Tennessee and is also making significant progress in Alabama.  With only ten states necessary to trigger the compact and allow Commission business to begin, it is very possible SLIMPACT could reach critical mass in just one legislative session.

Indiana became the fourth state to join the Surplus Lines Insurance Multistate Compliance Compact when Gov. Mitch Daniels signed SB 578 into law yesterday.  The bill was originally sponsored by Reps. Matt Lehman and Craig Fry.  Indiana joins Kentucky, New Mexico, and North Dakota in SLIMPACT, which is also being considered in at least 10 other state legislatures around the country. 

Legislators this year will consider a host of new compacts that could help them tackle a variety of challenging issues, covering everything from prescription drug abuse to insurance. The Council of State Governments’ National Center for Interstate Compacts has been instrumental in helping craft these compacts.

 

Dating back to America’s colonial past, interstate compacts are one of the few tools specifically granted to states by the U.S. Constitution. While it is unlikely our Founding Fathers anticipated the scope and breadth of today’s state government policy challenges, their inclusion of compacts in the Constitution provided state policymakers with a powerful, durable, and adaptive tool for ensuring cooperative action among the states. The growth of the modern
compact has further provided states a sophisticated administrative mechanism, allowing interstate collaboration to resolve complex policy challenges, while simultaneously avoiding federal intervention. 

This report summarizes the meeting of the Fiscal Affairs Roundtable at the 2010 CSG National Conference in Providence, Rhode Island.  Issues discussed include a fiscal outlook for 2011, unemployment insurance, public pensions, and federal financial reform.

NOW, THEREFORE BE IT RESOLVED, that The Council of State Governments (CSG) supports The Surplus Lines Insurance Multi-State Compliance Compact, also supported by the National Conference of Insurance Legislators (NCOIL), the surplus and excess lines industry, and major national property-casualty and producer organizations—to comply with the NRRA and maximize state non-admitted insurance premium tax collection.

In the last few weeks NCIC staff has been working to help facilitate an agreement between various stakeholdres for the modified Surplus Lines Insurance Multi-State Compliance Compact, known as SLIMPACT-Lite.  The compact, which aims to bring the surplus lines insurance market in compliance with the Nonadmitted Insurance and Reinsurance Reform Act (NRRA) section of the Dodd-Frank fiscal reform bill, was widely endorsed by state legislators and industry officials at the National Conference of Insurnace Legislators (NCOIL) recently concluded meeting.  Both Crady deGolian and Rick Masters were in attendance at the meeting to discuss the importance of the compact and the need for state action in order to avoid federal regulation.  Additionally, a resolution encouraging states to consider adoption of the compact will be consider at CSG's upcoming meeting Dec. 3-6 in Providence, RI.  To read the complete press release about CSG's involvement with SLIMPACT-Lite please click here

LEXINGTON, Ky.-The National Center for Interstate Compacts helped create language for a new insurance compact endorsed by the National Conference of Insurance Legislators, or NCOIL, at a state summit in Austin Sunday. The National Center is part of The Council of State Governments, the nation's only organization serving all three branches of state government.

The compact is called SLIMPACT-Lite--the Surplus Lines Insurance Multi-State Compliance Compact. The surplus lines industry provides an insurance market for hard-to-...

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