NAIC Surplus Lines Implementation Task Force Votes to Adopt Florida’s SLIMA Proposal

The National Association of Insurance Commissioners (“NAIC”) Surplus Lines Implementation Task Force (“Task Force”) voted today to utilize Florida’s proposed Surplus Lines Insurance Multi-State Agreement (“SLIMA”) as its preferred vehicle for addressing surplus lines reform as provided in the Non-Admitted and Reinsurance Reform Act, a part of the recently passed Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Along with SLIMA, the Task Force considered two other items at today’s meeting: 

• The Surplus Lines Insurance Multi-State Compliance Compact (“SLIMPACT”), an interstate compact drafted with input from various insurance industry professionals;
• The Nonadmitted Insurance Compact (“NIC”), which was developed with Task Force members’ input as the Task Force continually met over the past couple of months.

Florida had previously cited possible state constitutional issues with compacting under the provisions of SLIMPACT.  The SLIMA agreement has been described as a “slimmer version of SLIMPACT,” and is limited to collection and allocation of surplus lines premium taxes.

Task Force Chairman and Louisiana Insurance Commissioner Jim Donelon stated that NAIC Chief Counsel of Regulatory Affairs John Bauer would work with Florida Office of Insurance Regulation General Counsel Steve Parton to combine SLIMA and consensus items from the NIC into a draft to be presented for discussion at a Task Force meeting that will be scheduled for next week.

A copy of the most recent SLIMA draft, along with comment letters received by the Task Force since its October 20, 2010 meeting, is attached.

Should you have any comments or questions regarding this matter, please contact Colodny Fass. 

To unsubscribe from this newsletter, please send an email to bellis@cftlaw.com.