In a continuing effort to implement uniform nationwide requirements and procedures for the reporting and remittance of taxes on multi-state surplus lines policies, the Florida Surplus Lines Service Office has entered into an agreement with NIMA Inc., effective April 16, to provide Clearinghouse services for participating states.
NIMA, Inc. has released the following press release:
NIMA, Inc. Enters into Agreement with the Florida Surplus Lines Service Office (FSLSO) As Clearinghouse Provider
TALLAHASSEE, Fla.- NIMA member state representatives met via conference call on Friday, March 30, 2012 and approved both a Premium Tax Clearinghouse Services Agreement and License Agreement. Through these agreements, NIMA, Inc. will contract with the Florida Surplus Lines Service Office (FSLSO) to serve as its central clearinghouse provider for the collection and allocation of surplus lines premium tax payments for multi-state surplus lines policies. The FSLSO will serve as the technology platform provider and will also provide all clearinghouse administrative duties. The clearinghouse will begin receiving filings for policies issued or renewed on or after July 1, 2012. The FSLSO formally signed and effectuated the agreements on April 16, 2012.
"We have taken a big step this week toward implementing the business plan of NIMA, Inc.," said South Dakota's Director of Insurance Merle Scheiber. "This is good public policy for multi-state surplus lines, and I'm looking forward to the success of this endeavor."
"The FSLSO strives to deliver leading edge technology to all its customers, and we are proud to have the opportunity to provide that same level of service to the states of NIMA, Inc.," said Gary Pullen, Executive Director of the Florida Surplus Lines Service Office. "As an organization, we are pleased to be a part of this national effort to streamline the collection and remittance of surplus lines taxes."
NIMA, Inc., is a non-profit corporation established by the NIMA states that will provide a mechanism to report, collect, allocate and distribute surplus lines tax revenues consistent with the Non-Admitted and Reinsurance Reform Act (NRRA). The NRRA became part of the Dodd-Frank Wall Street Reform legislation passed in 2010 that allows only the home state to require premium tax payments for non-admitted insurance absent an agreement. Through the NIMA agreement, participating states will be able to collect premium taxes owed to their state when they are not the home state of the policy, thus protecting each participating states' tax revenue on surplus lines policies.
Jack McDermott 850-413-2515 Jack.McDermott@floir.com
Amy Bogner 850-413-2515 Amy.Bogner@floir.com