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Implementation of the federal law streamlining multistate taxation and regulation of business placed in the excess and surplus lines market is rapidly morphing into an intense confrontation between industry representatives and state regulators.

A key harbinger of whether the conflict will wind up being resolved quickly or be settled only by federal legislative or legal action was set to occur last Friday as this issue went to press. That is when the National Council of Insurance Legislators took up a proposed legislative model dubbed “SLIMPACT-Lite” at their annual meeting in Austin over the weekend.

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