Nebraska to Withdraw from Nonadmitted Multistate Agreement (NIMA) Effective March 5, 2012
Jan 11, 2012
The following notice was issued by Nebraska Insurance Department Director Bruce R. Ramge announcing Nebraska’s March withdrawal from the Nonadmitted Insurance Multistate Agreement:
On January 4, 2012, the Nebraska Department of Insurance notified Mississippi Insurance Commissioner Mike Chaney, chairman of the Governance Committee of the Nonadmitted Insurance Multistate Agreement (“NIMA”), of Nebraska’s withdrawal as a participatory state from NIMA effective March 5, 2012.
A copy of the Notice and Director Ramge’s letter to Commissioner Chaney is attached.
NIMA originally required the creation of a Clearinghouse, which would collect surplus lines premium taxes and distribute them to participating states in accordance with a formula set forth in the agreement. While the proposed plan of operation for the Clearinghouse allowed for the collection and allocation of nonadmitted insurance premium taxes, the time frame offered to surplus lines brokers and insureds independently procuring nonadmitted insurance to report all such business transacted during a designated quarter directly conflicted with Nebraska statutory provisions.
Accordingly and until further notice, all quarterly surplus lines filings and tax payments shall be filed with the Department.
The Department’s website at www.doi.ne.gov/surplus_lines/sl_index.htm containts the required forms and instructions to complete quarterly filings and will be updated as necessary.
A related Insurance Journal article is reprinted below.
Should you have any questions or comments, please contact Colodny Fass.
Nebraska to Opt Out of Nonadmitted Insurance Multistate Agreement
January 10, 2012
Nebraska insurance regulators have notified the governing committee of the Nonadmitted Insurance Multistate Agreement (NIMA) that the state intends to withdraw from the agreement effective March 5, 2012.
Bruce Ramge, director of the Nebraska Department of Insurance, on Jan. 4 sent a letter to Mississippi Insurance Commissioner Mike Chaney, chairman of the NIMA governance committee, indicating Nebraska’s intention to withdraw as a participating state.
A bulletin released by Nebraska DOI explained that the timeframe for the collection and allocation of nonadmitted insurance premium taxes by a clearinghouse to be created by NIMA conflicts with timelines set by Nebraska law.
“While the proposed plan of operation for the Cleainghouse allowed for the collection and allocation of nonadmitted insurance premium taxes, the time frame offered to surplus lines brokers and insureds independently procuring nonadmitted insurance to report all such business transacted during a designated quarter directly conflicted with Nebraska statutory provisions,” the bulletin said.
The bulletin further stated that “all quarterly surplus lines filings and tax payments shall be filed with the Department” until further notice.
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