- Non-Admitted Insurance Multi-State Agreement (NIMA) Exceeds $500 Million in Reported Premium in First Year
- July 11, 2013
- Law Firm: Colodny Fass Talenfeld Karlinsky Abate Webb P.A. - Fort Lauderdale Office
The Non-Admitted Insurance Multi-State Association ("NIMA") announced today, July 9, 2013, that reported premium in the Non-Admitted Insurance Multi-State Agreement exceeded $500 million in the year since the Surplus Lines Clearinghouse ("Clearinghouse") became operational on July 1, 2012.
Of the more than $531 million in premium reported to the Clearinghouse as of July 1, 2013, $281 million was directly allocated to the six participating members of NIMA, which are Florida, Louisiana, South Dakota, Utah, Wyoming and Puerto Rico. During its first year, the Clearinghouse collected more than $24.9 million in total taxes on this reported premium.
Data also revealed that approximately 47 percent, or $250 million, of the $531 million could have been allocated to states that are not members of NIMA.
"NIMA provides a viable opportunity for states to collect additional tax revenues while also promoting nationwide uniformity," said Merle Scheiber, Chairman of NIMA, Inc. and South Dakota's Director of Insurance. "The success of the program lies within the accuracy of the data as well as its availability to regulators."
NIMA recently adopted an Associate Membership option in order to provide non-NIMA states a better overview of the NIMA tax-sharing arrangement. The Associate Membership allows non-NIMA states the ability to use Clearinghouse services for a 12-month trial period at no cost to the state, policyholders or brokers. Associate Members report policy information to the Clearinghouse without actually sharing tax revenue, while also receiving quarterly data reports on the amount of taxable premium that could have been allocated to their state as a participating member of NIMA. At the expiration of the trial period, Associate Members can then determine if the benefits of joining NIMA are the right decision for their state.
To further promote this concept and share the one-year preliminary premium data, a June meeting was held in South Dakota, which was attended by representatives from NIMA, the Clearinghouse, the National Association of Professional Surplus Lines Offices (NAPSLO), the Council of Insurance Agents & Brokers (CIAB) and the National Conference of Insurance Legislators (NCOIL).
"We understand that states want to be sure NIMA participation is the best option for their state resources," said Clearinghouse Manager Tiffany Maruniak. "The Associate Membership is a no-obligation, no-cost way for states to gather supporting data to help them make that decision."
For more information about NIMA and the new Associate membership, visit the NIMA website.