Texas
Credit: Stephen Finn/Adobe Stock
Florida
SB 7052 was introduced as a late-filed bill during the 2023 Florida regular legislative session, and it contained multiple provisions that were harmful to the surplus lines industry. WSIA was very concerned about some of these provisions. SB 7052 was amended based upon the House version, HB 7065, and ultimately passed without any of the harmful provisions to the surplus lines industry. WSIA worked with the Florida Surplus Lines Association (FSLA) to oppose the relevant provisions of the Senate bill which was approved by the Governor and took effect on July 1, 2023.
HB 837 is a comprehensive tort reform bill that limits the applicability of one-way attorney’s fees in several ways but, most notably, one-way fees awarded in judgments against surplus lines insurers. The bill also includes several other tort reform provisions. “This bill was signed into law on March 24 and became effective immediately,” Kish said. “This legislation was very much welcomed by the market and we believe we will begin to see a positive impact from the changes soon.”
Credit: Raul Rodriguez/Adobe Stock
Maine
A statutory change made by LD 1917 in 2022 resurrected a long-dormant statute requiring a retaliatory tax on surplus lines business. 36 MRSA 2519 requires the state to collect a retaliatory tax when the writing carrier is located in a state with a higher tax rate than the Maine rate of 3%. WSIA retained legislative counsel in Maine and worked with local partners to introduce LD 1979 which would repeal the retaliatory tax provision. The bill was signed into law and has a retroactive effective date of January 1, 2023, so brokers will not have to remit taxes based upon the retaliatory provision.
In addition, LD 1808, amends existing statute to allow surplus lines producers to elect to determine the tax payment for each estimated tax period on the basis of premiums written during each tax period of the current calendar year instead of the traditional taxation payment method, which is based on the previous year’s tax burden. WSIA supports this measure and believes it will further simplify the Maine tax payment process going forward. The bill is still pending in the Maine legislature.
Credit: SeanPavonePhoto/Adobe Stock
Nevada
For Nevada’s Defense With Limits Law, WSIA was pleased with Commissioner Kipper’s recent issuance of an emergency regulation addressing the underlying legislation.
“As part of his guidance, his office indicated that that the law is limited to liability policies issued by authorized insurers, thus the prohibition does not apply to defense within limits in nonadmitted contracts,” Kish said. “WSIA strongly advocated to the Commissioner and his staff that the legal and regulatory precedent precluded application to the nonadmitted market and we are very happy that he had the same conclusion. We expect that when the legislature adjourns again in 2025, the underlying statute will be revisited.”
Credit: f11photo/Shutterstock.com
Pennsylvania
The Pennsylvania Surplus Lines Association issued a Bulletin on July 25, 2022 indicating that personal lines policies fees charged in addition to a commission are prohibited according to the Pennsylvania Department of Insurance. Based on members’ concerns, WSIA hired a lobbyist to seek a legislative change that will clarify that policy fees are permitted on personal surplus lines policies, just as they are allowed for commercial policies, and is working towards a legislative solution in 2023.
Credit: Alexander Lukatskiy/Shutterstock.com
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Texas
Credit: Stephen Finn/Adobe Stock
Florida
SB 7052 was introduced as a late-filed bill during the 2023 Florida regular legislative session, and it contained multiple provisions that were harmful to the surplus lines industry. WSIA was very concerned about some of these provisions. SB 7052 was amended based upon the House version, HB 7065, and ultimately passed without any of the harmful provisions to the surplus lines industry. WSIA worked with the Florida Surplus Lines Association (FSLA) to oppose the relevant provisions of the Senate bill which was approved by the Governor and took effect on July 1, 2023.
HB 837 is a comprehensive tort reform bill that limits the applicability of one-way attorney’s fees in several ways but, most notably, one-way fees awarded in judgments against surplus lines insurers. The bill also includes several other tort reform provisions. “This bill was signed into law on March 24 and became effective immediately,” Kish said. “This legislation was very much welcomed by the market and we believe we will begin to see a positive impact from the changes soon.”
Credit: Raul Rodriguez/Adobe Stock
Maine
A statutory change made by LD 1917 in 2022 resurrected a long-dormant statute requiring a retaliatory tax on surplus lines business. 36 MRSA 2519 requires the state to collect a retaliatory tax when the writing carrier is located in a state with a higher tax rate than the Maine rate of 3%. WSIA retained legislative counsel in Maine and worked with local partners to introduce LD 1979 which would repeal the retaliatory tax provision. The bill was signed into law and has a retroactive effective date of January 1, 2023, so brokers will not have to remit taxes based upon the retaliatory provision.
In addition, LD 1808, amends existing statute to allow surplus lines producers to elect to determine the tax payment for each estimated tax period on the basis of premiums written during each tax period of the current calendar year instead of the traditional taxation payment method, which is based on the previous year’s tax burden. WSIA supports this measure and believes it will further simplify the Maine tax payment process going forward. The bill is still pending in the Maine legislature.
Credit: SeanPavonePhoto/Adobe Stock
Nevada
For Nevada’s Defense With Limits Law, WSIA was pleased with Commissioner Kipper’s recent issuance of an emergency regulation addressing the underlying legislation.
“As part of his guidance, his office indicated that that the law is limited to liability policies issued by authorized insurers, thus the prohibition does not apply to defense within limits in nonadmitted contracts,” Kish said. “WSIA strongly advocated to the Commissioner and his staff that the legal and regulatory precedent precluded application to the nonadmitted market and we are very happy that he had the same conclusion. We expect that when the legislature adjourns again in 2025, the underlying statute will be revisited.”
Credit: f11photo/Shutterstock.com
Pennsylvania
The Pennsylvania Surplus Lines Association issued a Bulletin on July 25, 2022 indicating that personal lines policies fees charged in addition to a commission are prohibited according to the Pennsylvania Department of Insurance. Based on members’ concerns, WSIA hired a lobbyist to seek a legislative change that will clarify that policy fees are permitted on personal surplus lines policies, just as they are allowed for commercial policies, and is working towards a legislative solution in 2023.
Credit: Alexander Lukatskiy/Shutterstock.com
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Texas
Credit: Stephen Finn/Adobe Stock
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