The clearinghouse that is the core of the Nonadmitted InsuranceMultistate Agreement (NIMA) tax-sharing compact is set to beginoperation July 1, according to the 11 states and territories thatcomprise it.

However, one industry lawyer who specializes in issues relatedto the implementation of the Nonadmitted and Reinsurance Reform Act(NRRA) says he'll believe it when he sees it.

“Just because the clearinghouse is set up doesn't mean it willbe operational,” says Richard A. Brown, a senior lawyer with anaccounting background who is a sole practitioner in San Francisco.“A lot of details have to be ironed out before there is any actualtax-sharing.”

Joel Wood, senior vice president of government affairs for theCouncil of Insurance Agents and Brokers, says that “unless there isa far greater critical mass of states that are engaged, this entireventure amounts to spending a dollar to collect a dime.”

Wood says the Council doesn't see any momentum among largestates—New York, California, Texas, Illinois, Ohio, etc.—to join inthis effort.

“I don't see any real movement, either, to reconcile the NIMAand SLIMPACT (Surplus Lines Insurance Multistate ComplianceCompact) models,” Wood adds.

In a statement released by the Florida Office of InsuranceRegulation, NIMA member-state representatives say they met viaconference call March 30 and approved both a premium-taxclearinghouse-services agreement and license agreement.

The members of NIMA say that through the agreements, NIMA Inc.will contract with the Florida Surplus Lines Service Office (FSLSO)to serve as its central clearinghouse provider for the collectionand allocation of surplus-lines premium-tax payments for multistatesurplus-lines policies.

The FSLSO will serve as the technology-platform provider andwill also provide all clearinghouse administrative duties.

The clearinghouse will begin receiving filings for policiesissued or renewed on or after July 1, 2012.