Welcome to Tuesday's Tips!
Ever wonder what the AAMGA committees are up to? Do their inner workings seem to be a secret, shrouded in an enigma, nestled in a mystery? Well, here are your Tuesday Tips to the rescue! We are helping pull back the veil, and we are starting with the Governmental Affairs Committee. This very brief article (trust us, it is brief, we made sure!) highlights a couple of issues they have been pursuing for the membership to help you get to know them a bit better.
|Joshua W. Korver, Committee Chair|
Among the many initiatives we focus on to become a better, more recognized advocate for the wholesale insurance industry are two pieces of federal legislation known as the NRRA (Non-admitted and Reinsurance Reform Act ) and NARAB II (National Association of Registered Agents and Brokers, version 2). You've probably heard of these hot topics, but do you really know why they matter to you?
The NRRA is important to MGAs, as it establishes a home state where Surplus Lines Brokers can pay all the taxes and fees for a policy that represents exposures in many states. Many options were considered for implementing the legislation; however, the 100% allocation system was implemented in most states, which requires no additional data reporting. 100% of the taxes owed on the policy are paid to the home state. The Governmental Affairs committee has worked hard to have this simplest solution adopted by as many states as possible. We are currently working on implementation solutions for the other provisions of the NRRA that will be the best benefit to the membership.
NARAB II is proposed legislation that allows a producer to simply pay the license fee in each state of their choice after a clearinghouse has approved a single application, rather than having to apply to each state individually. Our committee has been pursuing a variety of avenues, including letters to Congress and meetings with key individuals and organizations, to get this legislation considered. We're pleased to report that it appears the Senate will begin the review process of this legislation early this year.
These national efforts along with a host of state and legal issues are what keep the Governmental Affairs Committee busy behind the scenes. We are happy to help with any issues or questions, including any state or local issues where we can be an advocate for you.
Please click here to contact us if you would like more information on this subject or with any questions for the Governmental Affairs Committee.
© 2013 American Association of Managing General Agents
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