Most NAPSLO members understand that their days of complying with a maze of conflicting state rules about diligent search efforts, taxation of multi-state risks and multiple licensing requirements for a single risk will be over on July 21, 2011.

Questions remain, however, about exactly what will happen when Sections 521 through 527 of the Dodd-Frank Wall Street Reform and Consumer Act take hold. What exactly do these sections related to nonadmitted insurance say? What new rules will the E&S brokers have to follow?

NAPSLO Daily has compiled a list of frequently asked questions and answers relating to these sections of the new law--sections commonly referred to as NRRA, or the Nonadmitted and Reinsurance Reform Act (the name given to a version of these 10 pages that repeatedly passed the House of Representatives in recent years.) The following Q&A focuses on the first three sections, which directly impact brokers. For information on the effects of the law on E&S insurers and exempt commercial purchasers, refer to the accompanying resource list.