Florida House Advances Federal Surplus Lines Reform Bill; Senate Version Would Allow for Clearinghouse Service Fee
Apr 20, 2011
Two bills that would implement surplus lines reform provisions contained in the Nonadmitted and Reinsurance Reform Act (“NRRA”) of 2010 are moving through their respective House and Senate Committees in the 2011 Florida Legislative Session.
The House version, CS/CS/HB 1227, was passed unanimously as a Committee Substitute by the House Finance and Tax Committee today, April 20, 2011, and next will proceed to Economic Affairs, its final committee of reference. The Committee Substitute is attached for review, along with an accompanying legislative analysis.
The Senate bill, CS/CS/SB 1816, passed the Senate Budget Subcommittee on Finance and Tax on April 13 and also is awaiting consideration by its final committee of reference, the Senate Committee on Budget.
Similar to one another, the bills provide for the premium tax due on a surplus lines policy to be computed on the gross premium when Florida is the “home state” of the insured pursuant to the NRRA. The bills also authorize the Florida Department of Financial Services and the Office of Insurance Regulation to enter a multi-state reciprocal agreement for collection and allocation of premium taxes on nonadmitted insurance for multi-state risks pursuant to the NRRA.
In addition to other provisions, the latest version of both bills provide that such an agreement may include the collection of a service fee to fund the operations and activities of a clearinghouse. This fee would not to exceed 0.3 percent of the gross premium on transactions processed by the clearinghouse.
Amendments filed to CS/CS/SB 1816 by Senator Ellyn Bogdanoff that would have removed the aforementioned agencies’ authority to enter an agreement were not considered during the April 13 Senate Budget Subcommittee on Finance and Tax meeting.
- To view complete information on each bill, click on the hyperlinks above.
- To access the most recent legislative staff analysis of CS/CS/SB 1816, click here.
Should you have any questions or comments, please contact Colodny Fass.