States Limit Sharing Of Surplus Line Taxes

Law360, New York (May 24, 2012, 9:21 PM EDT) -- States participating in the Nonadmitted Insurance Multistate Agreement have adopted the so-called Kentucky proposal, which excludes most casualty surplus lines premiums from being allocated across state lines, NIMA said Thursday.

The surplus lines market offers coverage that is not available from insurers that are licensed or admitted in a particular state. In an effort to simplify the surplus lines taxing regime, the Dodd-Frank Wall Street Reform and Consumer Protection Act established that only the home state of the insured could tax a surplus line transaction, but...
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