Oregon Department of Business and Consumer Services’ Insurance Division Issues Guidance on Surplus Lines Reform (Nonadmitted and Reinsurance Reform Act/NRRA) Implementation

The Oregon Department of Business and Consumer Services’ Insurance Division recently issued Bulletin 2011-1 to all Oregon Surplus Lines licensees to outline the nationwide regulatory changes that will affect the placement of nonadmitted insurance in Oregon pursuant to the Nonadmitted and Reinsurance Reform Act (“NRRA”).

To enable the State of Oregon to comply with the NRRA, the Oregon Legislature passed House Bill 2679 (2011 Legislative Session), which conforms Oregon law to the NRRA and makes other changes to Oregon’s surplus lines law.

The effective date of HB 2679 is January 1, 2012.

Oregon’s Insurance Division will set forth the changes made to Oregon law by HB 2679 later in 2011.  In the meantime, the NRRA pre-empts Oregon surplus lines law in certain areas, which are outlined in the attached bulletin.

The NRRA becomes effective on July 21, 2011. The information within the bulletin relates to new and renewal nonadmitted insurance policies with an effective date on or after July 21, 2011.