The insurance industry is coalescing around a surplus-lines allocation formula proposed by Kentucky regulators as a means of breaking the impasse over implementation of the new federal surplus-lines reform and modernization law.

The Nonadmitted and Reinsurance Reform Act (NRRA) mandates that, as of July 21, the insured's home state is the only state with jurisdiction over multistate surplus-lines transactions and the only state that can require a tax be paid by the broker.

Two competing proposals have been developed to implement the law and create a system to share premium taxes among states.

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