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NCOIL, NAIC Fail to Agree On Surplus Lines Law

Despite extensive discussions, the National Association of Insurance Commissioners (NAIC) and the National Conference of Insurance Legislators (NCOIL) failed to reach agreement on a model...
November 23, 2010

Despite extensive discussions, the National Association of Insurance Commissioners (NAIC) and the National Conference of Insurance Legislators (NCOIL) failed to reach agreement on a model law needed to implement the federal legislation reforming and modernizing regulation of the surplus lines and reinsurance industries. But the two groups agreed they must finalize the model law before a drop-dead date of June 11, 2011, or Congress might step in.

An NCOIL proposal to implement the Nonadmitted and Reinsurance Reform Act, which was incorporated into the Dodd-Frank financial services reform legislation, has garnered the support of the insurance industry while a rival proposal by the NAIC has drawn industry fire. During talks held at the NCOIL annual meeting last week, both NCOIL and NAIC officials agreed that the worst-case scenario would be for some states to adopt the NCOIL model and other states adopt the NAIC model.

Click here to read No NCOIL, NAIC Agreement on Surplus Lines (National Underwriter 11/19/10)