Thousands of people open insurance bills every day. Many routinely question why the cost of their policies continues to rise. One place that Congress sought to find answers was in the costs imposed by the insurance regulatory system. Specifically, efforts were aimed at addressing growing concerns about costs in the surplus lines market, generally referred to as the nonadmitted insurance market, and which represents more than $30 billion in insurance premiums.The subtitle, known as the “Nonadmitted and Reinsurance Reform Act” (NRRA), establishes a national framework to bring about greater consistency and efficiency to the taxation and regulation of surplus lines insurance. Insurance oversight in the U.S. is a multifaceted web of more than 50 separate state-based systems, each with unique laws, procedures, regulations and established by individual state legislatures and insurance commissioners.Surplus lines insurers are a vital to the insurance buying public. Essentially, surplus lines cover the needs of consumers and businesses that are unable to secure coverage from the standard, admitted carriers licensed in their state.In Dodd-Frank, the NRRA established a uniform set of terms and definitions, a single set of standards for surplus lines insurer eligibility, and a single national producer database to maintain the licensure filings of agents and brokers. For policies with insured exposure in multiple states, the law mandates that only the home state of the insured (state of residence or headquarters) may require premium tax payment. A national standard will eliminate the regulatory inefficiencies found within the marketplace and will untangle the complex web -- a critical step to securing a stable, sustainable future for the industry.
sounds really good, wonder why the Pres. didn't pursue it. i know why congress didn't fight for it reduces the gauging practices of insurance co.
insurance has had a really long prosperous ride, they can still turn a profit with regulations after all they would be getting 30,000,000 more subscribers. time to get what we pay for.
