In the presidential candidate debates earlier this year, not moderator asked, “If elected, will you repeal or strengthen the NRRA?” If the question had been asked, it might have elicited a confused, “The what?” or perhaps an impassioned defense of gun owners' rights.
The Nonadmitted and Reinsurance Reform Act (NRRA), which took effect July 21, 2011, is an attempt to resolve interstate squabbles over insurance premium taxes charged on surplus line and direct placements. NRRA created a national definition of an insured's home state and allocated those tax revenues to that state, unless the involved states had joined a multi-state compact providing otherwise. NRRA also sought to create a more predictable system of determining a surplus line carrier's eligibility, again keyed to the home state's requirements, subject to some restrictions. It is an important part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank), which has been called the most comprehensive piece of financial industry reform legislation since the Glass-Steagall Act.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.