§2532. Authority to enter into multistate agreement

1.  Authority; multistate agreement.  The State Tax Assessor may, after consultation with the Department of Professional and Financial Regulation, Bureau of Insurance, enter into a multistate agreement, in accordance with the federal Nonadmitted and Reinsurance Reform Act of 2010, Public Law 111-203, Section 521, for the reporting of nonadmitted insurance premiums and the collection and allocation of nonadmitted insurance taxes. For any nonadmitted insurance premiums that are subject to taxation by this State and interstate allocation of taxes in accordance with the federal Nonadmitted and Reinsurance Reform Act of 2010, Public Law 111-203, Section 521, the rate of taxation on each participating state's share of the premium must be that state's applicable nonadmitted insurance premium tax rate.

[PL 2011, c. 331, §15 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]

2.  Fiscal analysis; consultation.  The State Tax Assessor may not enter into a multistate agreement pursuant to subsection 1 unless the assessor has:

A. Completed a fiscal analysis of the impact of the agreement that examines the expected effects on the State's gross receipt of premium tax; and   [PL 2011, c. 331, §15 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]

B. Concluded, after consultation with representatives of surplus lines insurers, admitted insurers and surplus lines producers, that entering into the agreement:

(1) Is in this State's financial best interest;

(2) Does not significantly increase administrative burden and cost to the State, surplus lines insurers and insureds; and

(3) Is consistent with the requirements of the federal Nonadmitted and Reinsurance Reform Act of 2010, Public Law 111-203.   [PL 2011, c. 331, §15 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]

[PL 2011, c. 331, §15 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]

SECTION HISTORY

PL 2011, c. 331, §15 (NEW). PL 2011, c. 331, §§16, 17 (AFF).