Nebraska Withdraws from Nonadmitted Insurance Multi-State Agreement
The Nebraska Department of Insurance has decided to withdraw from the Nonadmitted Insurance Multi-State Agreement over concerns about the proposed clearinghouse for the payment and allocation of surplus lines premium taxes. Nebraska Insurance Director Bruce R. Ramge said the state will withdraw from NIMA effective March 5, 2012. With the withdrawal of Nebraska, NIMA, developed by the National Association of Insurance Commissioners, has been adopted by 10 states.
An alternative model to NIMA called the Surplus Lines Insurance Multi-State Compliance Compact (SLIMPACT) was developed jointly by CSG’s National Center for Interstate Compacts, the National Conference of Insurance Legislators (NCOIL) and industry representatives and has been adopted by 9 states to date. SLIMPACT, which enjoys wide ranging industry support and has been endorsed by the National Association of Professional Lines Insurers, needs 10 states to activate the commission and to trigger a similar clearinghouse to oversee the allocation and collection of premium dollars. In addition to enjoying considerable industry support, SLIMPACT has been endorsed by the memberships of CSG, NCOIL, and the National Conference of State Legislators (NCSL). With state legislative sessions just beginning across the country it is hoped that at least one more state will join SLIMPACT, allowing the Commission to engage in formal rule-making and the formation of the clearinghouse. Doing so would also ensure compliance with the requirements of the Nonadmitted and Reinsurance Reform Act section of the Dodd-Frank Wall Street Reform and Consumer Protection Act.