As we previously reported here, the Non-Admitted Insurance Multi-State Association (“NIMA”) had announced its intentions to dissolve, with a run-off period until September 30, 2017 to allow for endorsements to be filed through the Surplus Lines Clearinghouse (the “Clearinghouse”). Yesterday, the Clearinghouse published a bulletin here providing guidance to surplus lines insurers and brokers with respect to NIMA’s decision to discontinue. In particular, the Clearinghouse has stated that, effective October 1, 2016, all surplus lines transactions involving multistate risks should be reported directly to the home state of the insured and will no longer be processed through the Clearinghouse’s multistate platform. The Clearinghouse has provided the following additional instructions with respect to NIMA jurisdictions:
All additional premium, return premium and cancellation endorsements effective prior to October 1, 2016 should still be filed through the Clearinghouse multistate platform through September 30, 2017.
The Clearinghouse also will accept South Dakota and Wyoming Policies after October 1, 2016; however, all such policies will be reported as single state policies and not through the Clearinghouse’s multistate platform, with 100% of the premium taxed by the home state of the insured.
Visit our Insurance & Reinsurance Blog for the latest news and developments.Visit the blog
Sign up for our newsletter and get the latest to your inbox.