Surplus Lines (C) Task Force
Surplus Lines (C) Task Force Page
Joint Executive (EX) / Plenary Committee Summary Report
Winter 2009 Meeting Summaries Index

The Surplus Lines (C) Task Force met Dec. 7, 2009. During this meeting, the Task Force:

• Heard and discussed a presentation on the NAIC’s Online Premium Tax for Insurance (OPTins), a tool that allows the submission and payment of premium tax filings. This tool is already being used by a few states for surplus lines purposes. The Task Force believes this NAIC application has the potential to be more widely used in connection with the surplus lines brokerage market as well as the domestic insurer market.

• Heard and discussed an update on pending federal legislation regarding proposed reforms to the surplus lines market.

• Received and discussed a summary regarding the surplus lines license exemption survey. The survey was the result of a research request from the Producer Licensing (EX) Working Group regarding the commercial lines multi-state exemption provision of the Producer Licensing Model Act as it relates to surplus lines. The survey was created to gauge states’ opinions regarding a possible extension of the non-resident licensing exemption for multi-state risks to apply to surplus lines producers. The Task Force agreed to provide the summary to the Producer Licensing (EX) Working Group and the National Association of Registered Agents and Brokers (EX) Working Group.                                                                                          

• Heard a summary on eight responses from Task Force members regarding a survey requesting feedback on methods for achieving goals of the Non-admitted and Reinsurance Reform Act—H.R. 2571 (NRRA-Title I). At the June Task Force meeting, interested parties had requested the Task Force to survey its members to determine if there was consensus within the NAIC to establish an acceptable method to implement reforms should the NRRA-Title I be enacted. The Task Force noted that based on the limited survey responses, there appeared to be little consensus regarding how to implement this proposed national legislation.

• Received a report and interim minutes of the Multi-State Surplus Lines Premium Tax (C) Working Group.

• Received a report and interim minutes of the Surplus Lines Financial Analysis (C) Working Group.

• Heard comments from interested parties requesting that the Task Force engage in discussions regarding a compact. Task Force members and NAIC staff highlighted existing efforts already being analyzed by the Task Force and the Multi-State Surplus Lines Premium Tax (C) Working Group regarding uniform processes, and these initiatives did not necessarily require a compact.