The educational component of WSIA’s continued work on behalf ofthe surplus lines industry is a key part of the organization’svalue position, and in the year to come several key issues willremain top-of-mind for members who strive to further the mission ofE&S professionals.

NRRA implementation

WSIA continues to work with states to fully implement the NRRAin a uniform manner as envisioned by the NRRA. NIMA continues tomove through the wind-down phase of its dissolution. The SurplusLines Clearinghouse is accepting multistate return premium,additional payments and cancellation of endorsements through itsanticipated wind-down by Sept. 30.

“The NRRA is the most important piece of legislation to impactthe surplus lines industry in decades,” said Tim Chaix, WSIALegislative Co-Chair and Vice President, R.E. Chaix &Associates Insurance Brokers Inc. in Irvine, Calif. “As a broker, Ireally felt the impact of the NRRA, especially in placingmultistate risks. It has become much simpler to calculate and remittaxes. We are very close to having all states collect and retainsurplus lines taxes based on their own surplus lines premium taxrate, regardless of where the risks reside.”

Only five states’ statutes, including Florida, Hawaii,Massachusetts, New Hampshire and Vermont still require surpluslines brokers to calculate and submit the surplus lines premium taxbased on the state’s rate where the risks reside for a multistatepolicy. “I would like to see all five states tax 100% of amultistate policy based on their own state rate, but I believe wewill get at least one or two of these five states to change thisyear — which I think will be a huge step towards uniformity in thiscategory,” Chaix added.

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Shawn Moynihan

Shawn Moynihan is Editor-in-Chief of National Underwriter Property & Casualty. A St. John’s University alum, Moynihan has earned 11 Jesse H. Neal Awards, the Pulitzers of the business press; seven Azbee Awards, from the American Society of Business Press Editors; two Folio Awards; and a SABEW award, from the Society of American Business Editors & Writers. Prior to joining ALM, he served as Managing Editor/Online Editor of journalism institution Editor & Publisher, the trade bible of the newspaper industry. Moynihan also has held editorial positions with AOL, Metro New York, and Newhouse Newspapers. He can be reached at [email protected].