Multi-State Surplus Lines Risks: Will There Be Meaningful Tax-Sharing Among the States?

[Editor's note: Karen Benson is an associate with Jorden Burt LLP, resident in its Miami, Florida office. This article, which was first published at www.reinsurancefocus.com, does not constitute legal or other professional advice or service by JORDEN BURT LLP and/or its attorneys.]

The Nonadmitted and Reinsurance Reform Act, signed into law in 2010 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, prohibits states other than the home state of an insured from imposing a premium tax on surplus lines insurance, effective July 21, 2011.(i) In other words, the NRRA establishes a single-state taxation system for multi-state …