On November 16, the NCOIL State-Federal Relations Committee considered and approved a Resolution in Support of Surplus Lines Insurance Multi-State Compliance Compact (SLIMPACT), sponsored for discussion by Senator James Seward (NY) and Representative Robert Damron (KY).  The resolution expresses NCOIL support for SLIMPACT and says that adoption of SLIMPACT would streamline the efficiency of surplus lines regulation while also defending the state-based insurance regulatory system against supporters of federal intervention.

The resolution says SLIMPACT would create a single-state regulatory compliance system for both multi-state surplus lines and independently procured insurance. The compact, the resolution says, would establish uniform formulae for premium tax allocation and would serve as a clearinghouse to facilitate the correct calculation and reporting of premium taxes owed to compacting states. The resolution also states that SLIMPACT would improve coordination between state insurance departments and other state agencies, as well as state surplus lines stamping offices.

What It Means to Agents:  PIA strongly supports this resolution and we made it clear at the meeting that we intend to work with the legislators, NAIC, other interested parties and our affiliates to get such a compact up and running.

December 4, 2007