The new surplus lines bill, which was just passed in the US House, provides for simplified and consistent surplus lines placements for insurance agents around the country (see here & here). A companion Senate bill has been introduced and is awaiting action. A similar house version was passed last year 417-0.
The bill works by defining national standards for how the surplus lines market is regulated by the states, and includes a uniform method for allocating and remitting surplus lines tax. The one-state compliance for multi-state risks provision is an important aspect of the bill.
While many states have streamlined the surplus lines process, some have not. And inconsistencies between states’ surplus lines requirements can make it difficult for surplus lines brokers and insurance agents to effectively comply with state requirements. This bill will be a welcome relief to most insurance practitioners.
Specialty Insurance Expertise: Tennant Risk Services
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