NU Online News Service, April 16, 2:04 p.m. EST
Wisconsin, which did not take action on implementing the federal Nonadmitted and Reinsurance Reform Act last year, has now passed such legislation, a National Association of Professional Surplus Lines Offices bulletin states.
Wisconsin’s governor signed SB 378 on April 6, which incorporates home-state regulation provisions consistent with the NRRA, NAPSLO says.
NAPSLO notes that the bill does not authorize tax sharing with other states, “instead requiring taxing the gross premium when Wisconsin is the home state of the insured.”
While the bill does not commit Wisconsin to either of the rival tax-sharing mechanisms—SLIMPACT or NIMA—it does include NIMA definitions for “principal residence”—if 100 percent of the risk is outside of the state then the home state is the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated—and for “principal place of business”—insured maintains its headquarters and where the insured's high level officers direct, control and coordinate business activities.