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304.10-400 Surplus Lines Insurance Multi-State Compliance Compact.
The Surplus Lines Insurance Multi-State Compliance Compact is hereby enacted into law
and entered into by this state with any other states legally joining therein in the form
substantially as follows:
PREAMBLE
WHEREAS, with regard to Non-Admitted Insurance policies with risk exposures located
in multiple states, the 111th United States Congress, has stipulated in Title V,
Subtitle B the Non-Admitted and Reinsurance Reform Act of 2010, of the DoddFrank Wall Street Reform and Consumer Protection Act, hereafter, the NRRA, that:
(A) The placement of Non-Admitted Insurance shall be subject to the statutory
and regulatory requirements solely of the insured’s Home State; and
(B) Any law, regulation, provision, or action of any State that applies or purports
to apply to Non-Admitted Insurance sold to, solicited by, or negotiated with an
insured whose Home State is another State shall be preempted with respect to
such application; except that any State law, rule, or regulation that restricts the
placement of workers' compensation insurance or excess insurance for selffunded workers' compensation plans with a Non-Admitted Insurer shall not be
preempted;
WHEREAS, in compliance with NRRA, no State other than the Home State of an insured
may require any Premium Tax payment for Non-Admitted Insurance; and no State
other than an insured’s Home State may require a Surplus Lines Broker to be
licensed in order to sell, solicit, or negotiate Non-Admitted Insurance with respect
to such insured;
WHEREAS, the NRRA intends that the States may enter into a compact or otherwise
establish procedures to allocate among the States the premium taxes paid to an
insured’s Home State; and that each State adopt nationwide uniform
requirements, forms, and procedures, such as an interstate compact, that provide for
the reporting, payment, collection, and allocation of premium taxes for NonAdmitted Insurance;
WHEREAS, after the expiration of the two-year period beginning on the date of the
enactment of the NRRA, a State may not collect any fees relating to licensing of an
individual or entity as a Surplus Lines Licensee in the State unless the State has in
effect at such time laws or regulations that provide for participation by the State in
the national insurance producer database of the NAIC, or any other equivalent
uniform national database, for the licensure of Surplus Lines Licensees and the
renewal of such licenses;
WHEREAS, a need exists for a system of regulation that will provide for Surplus Lines
Insurance to be placed with reputable and financially sound Non-Admitted Insurers,
and that will permit orderly access to Surplus Lines Insurance in this state and
encourage insurers to make new and innovative types of insurance available to
consumers in this state;
WHEREAS, protecting the revenue of this state and other Compacting States may be
accomplished by facilitating the payment and collection of Premium Tax on NonAdmitted Insurance and providing for allocation of Premium Tax for Non-Admitted
Insurance of Multi-State Risks among the States in accordance with Uniform
Allocation Formulas;
WHEREAS, the efficiency of the surplus lines market may be improved by eliminating
duplicative and inconsistent tax and regulatory requirements among the States, and
by promoting and protecting the interests of Surplus Lines Licensees who assist
such insureds and Non-Admitted Insurers, thereby ensuring the continued
availability of Non-Admitted Insurance to consumers;
WHEREAS, regulatory compliance with respect to Non-Admitted Insurance placements
may be streamlined by providing for exclusive single-state regulatory compliance
for Non-Admitted Insurance of Multi-State Risks, thereby providing certainty
regarding such compliance to all persons who have an interest in such transactions,
including but not limited to insureds, regulators, Surplus Lines Licensees, other
insurance producers, and Surplus Lines Insurers;
WHEREAS, coordination of regulatory resources and expertise between State insurance
departments and other State agencies, as well as State surplus lines stamping
offices, with respect to Non-Admitted Insurance will be improved;
NOW, THEREFORE, in consideration of the foregoing, the State of Kentucky and the
various other States do hereby solemnly covenant and agree, each with the other as
follows:
ARTICLE I
Purpose
The purposes of this Compact are:
1.
To implement the express provisions of the NRRA.
2.
To protect the Premium Tax revenues of the Compacting States through facilitating
the payment and collection of Premium Tax on Non-Admitted Insurance; and to
protect the interests of the Compacting States by supporting the continued
availability of such insurance to consumers; and to provide for allocation of
Premium Tax for Non-Admitted Insurance of Multi-State Risks among the States in
accordance with uniform Allocation Formulas to be developed, adopted, and
implemented by the Commission.
3.
To streamline and improve the efficiency of the surplus lines market by eliminating
duplicative and inconsistent tax and regulatory requirements among the States; and
promote and protect the interest of Surplus Lines Licensees who assist such
insureds and Surplus Lines Insurers, thereby ensuring the continued availability of
Surplus Lines Insurance to consumers.
4.
To streamline regulatory compliance with respect to Non-Admitted Insurance
placements by providing for exclusive single-state regulatory compliance for NonAdmitted Insurance of Multi-State Risks, in accordance with Rules to be adopted by
the Commission, thereby providing certainty regarding such compliance to all
persons who have an interest in such transactions, including but not limited to
insureds, regulators, Surplus Lines Licensees, other insurance producers, and
Surplus Lines Insurers.
5.
To establish a Clearinghouse for receipt and dissemination of Premium Tax and
Clearinghouse Transaction Data related to Non-Admitted Insurance of Multi-State
Risks, in accordance with Rules to be adopted by the Commission.
6.
To improve coordination of regulatory resources and expertise between State
insurance departments and other State agencies, as well as State surplus lines
stamping offices, with respect to Non-Admitted Insurance.
7.
To adopt uniform Rules to provide for Premium Tax payment, reporting, allocation,
data collection and dissemination for Non-Admitted Insurance of Multi-State Risks
and Single-State Risks, in accordance with Rules to be adopted by the Commission,
thereby promoting the overall efficiency of the Non-Admitted Insurance market.
8.
To adopt uniform mandatory Rules with respect to regulatory compliance
requirements for:
(i) Foreign Insurer Eligibility Requirements;
(ii) Surplus lines Policyholder Notices.
9.
To establish the Surplus Lines Insurance Multi-State Compliance Compact
Commission.
10. To coordinate reporting of Clearinghouse Transaction Data on Non-Admitted
Insurance of Multi-State Risks among Compacting States and Contracting States.
11. To perform these and such other related functions as may be consistent with the
purposes of the Surplus Lines Insurance Multi-State Compliance Compact.
ARTICLE II
Definitions
For purposes of this Compact the following definitions shall apply:
1.
"Admitted Insurer" means an insurer that is licensed, or authorized, to transact the
business of insurance under the law of the Home State; for purposes of this
Compact "Admitted Insurer" shall not include a domestic surplus lines insurer as
may be defined by applicable State law.
2.
"Affiliate" means with respect to an insured, any entity that controls, is controlled
by, or is under common control with the insured.
3.
"Allocation Formula" means the uniform methods promulgated by the Commission
by which insured risk exposures will be apportioned to each State for the purpose of
calculating Premium Taxes due.
4.
"Bylaws" means those bylaws established by the Commission for its governance, or
for directing or controlling the Commission’s actions or conduct.
5.
"Clearinghouse" means the Commission’s operations involving the acceptance,
processing, and dissemination, among the Compacting States, Contracting States,
Surplus Lines Licensees, insureds and other persons, of Premium Tax and
Clearinghouse Transaction Data for Non-Admitted Insurance of Multi-State Risks,
in accordance with this Compact and Rules to be adopted by the Commission.
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"Clearinghouse Transaction Data" means the information regarding Non-Admitted
Insurance of Multi-State Risks required to be reported, accepted, collected,
processed, and disseminated by Surplus Lines Licensees for Surplus Lines
Insurance and insureds for Independently Procured Insurance under this Compact
and Rules to be adopted by the Commission. Clearinghouse Transaction Data
includes information related to Single-State Risks if a state elects to have the
Clearinghouse collect taxes on Single-State Risks for such state.
"Compacting State" means any State which has enacted this Compact legislation
and which has not withdrawn pursuant to Article XIV, Section 1, or been
terminated pursuant to Article XIV, Section 2.
"Commission" means the "Surplus Lines Insurance Multi-State Compliance
Compact Commission" established by this Compact.
"Commissioner" means the chief insurance regulatory official of a State including,
but not limited to commissioner, superintendent, director or administrator or their
designees.
"Contracting State" means any State which has not enacted this Compact legislation
but has entered into a written contract with the Commission to utilize the services of
and fully participate in the Clearinghouse.
"Control" An entity has "control" over another entity if:
(A) The entity directly or indirectly or acting through 1 or more other persons
own, controls, or has the power to vote 25 percent or more of any class of
voting securities of the other entity; or
(B) The entity controls in any manner the election of a majority of the directors or
trustees of the other entity.
"Home State"
(A) IN GENERAL. Except as provided in subparagraph (B), the term "Home
State" means, with respect to an insured:
(i) The State in which an insured maintains its principal place of business
or, in the case of an individual, the individual’s principal residence;
or
(ii) If 100 percent of the insured risk is located out of the State referred to in
subparagraph (A)(i), the State to which the greatest percentage of the
insured’s taxable premium for that insurance contract is allocated.
(B) AFFILIATED GROUPS. If more than one insured from an affiliated group are
named insureds on a single Non-Admitted Insurance contract, the term "Home
State" means the Home State, as determined pursuant to subparagraph (A), of
the member of the affiliated group that has the largest percentage of premium
attributed to it under such insurance contract.
"Independently Procured Insurance" means insurance procured by an insured
directly from a Surplus Lines Insurer or other Non-Admitted Insurer as permitted by
the laws of the Home State.
"Insurer Eligibility Requirements" means the criteria, forms and procedures
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established to qualify as a Surplus Lines Insurer under the law of the Home State
provided that such criteria, forms and procedures are consistent with the express
provisions of the NRRA on and after July 21, 2011.
"Member" means the person or persons chosen by a Compacting State as its
representative or representatives to the Commission provided that each Compacting
State shall be limited to one vote.
"Multi-State Risk" means a risk with insured exposures in more than one State.
"Non-Compacting State" means any State which has not adopted this Compact.
"Non-Admitted Insurance" means Surplus Lines Insurance and Independently
Procured Insurance.
"Non-Admitted Insurer" means an insurer that is not authorized or admitted to
transact the business of insurance under the law of the Home State.
"NRRA" means the Non-Admitted and Reinsurance Reform Act which is Title V,
Subtitle B of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
"Policyholder Notice" means the disclosure notice or stamp that is required to be
furnished to the applicant or policyholder in connection with a Surplus Lines
Insurance placement.
"Premium Tax" means with respect to Non-Admitted Insurance, any tax, fee,
assessment, or other charge imposed by a government entity directly or indirectly
based on any payment made as consideration for such insurance, including premium
deposits, assessments, registration fees, and any other compensation given in
consideration for a contract of insurance.
"Principal Place of Business" means with respect to determining the Home State of
the insured, the state where the insured maintains its headquarters and where the
insured’s high-level officers direct, control and coordinate the business
activities of the insured.
"Purchasing Group" means any group formed pursuant to the Liability Risk
Retention Act which has as one of its purposes the purchase of liability insurance on
a group basis, purchases such insurance only for its group members and only to
cover their similar or related liability exposure and is composed of members whose
businesses or activities are similar or related with respect to the liability to which
members are exposed by virtue of any related, similar or common business, trade,
product, services, premises or operations and is domiciled in any State.
"Rule" means a statement of general or particular applicability and future effect
promulgated by the Commission designed to implement, interpret, or prescribe law
or policy or describing the organization, procedure or practice requirements of the
Commission which shall have the force and effect of law in the Compacting States.
"Single-State Risk" means a risk with insured exposures in only one State.
"State" means any state, district or territory of the United States of America.
"State Transaction Documentation" means the information required under the laws
of the Home State to be filed by Surplus Lines Licensees in order to report Surplus
Lines Insurance and verify compliance with surplus lines laws, and by insureds in
order to report Independently Procured Insurance.
29. "Surplus Lines Insurance" means insurance procured by a Surplus Lines Licensee
from a Surplus Lines Insurer or other Non-Admitted Insurer as permitted under the
law of the Home State; for purposes of this Compact "Surplus Lines Insurance"
shall also mean excess lines insurance as may be defined by applicable State law.
30. "Surplus Lines Insurer" means a Non-Admitted Insurer eligible under the law of the
Home State to accept business from a Surplus Lines Licensee; for purposes of this
Compact "Surplus Lines Insurer" shall also mean an insurer which is permitted to
write Surplus Lines Insurance under the laws of the state where such insurer is
domiciled.
31. "Surplus Lines Licensee" means an individual, firm or corporation licensed under
the law of the Home State to place Surplus Lines Insurance.
ARTICLE III
Establishment of the Commission and Venue
1.
The Compacting States hereby create and establish a joint public agency known as
the "Surplus Lines Insurance Multi-State Compliance Compact Commission."
2.
Pursuant to Article IV, the Commission will have the power to adopt mandatory
Rules which establish exclusive Home State authority regarding Non-Admitted
Insurance of Multi-State Risks, Allocation Formulas, Clearinghouse Transaction
Data, a Clearinghouse for receipt and distribution of allocated Premium Tax and
Clearinghouse Transaction Data, and uniform rulemaking procedures and Rules for
the purpose of financing, administering, operating and enforcing compliance with
the provisions of this Compact, its Bylaws and Rules.
3.
Pursuant to Article IV, the Commission will have the power to adopt mandatory
Rules establishing foreign Insurer Eligibility Requirements and a concise and
objective Policyholder Notice regarding the nature of a surplus lines placement.
4.
The Commission is a body corporate and politic, and an instrumentality of the
Compacting States.
5.
The Commission is solely responsible for its liabilities except as otherwise
specifically provided in this Compact.
6.
Venue is proper and judicial proceedings by or against the Commission shall be
brought solely and exclusively in a court of competent jurisdiction where the
principal office of the Commission is located. The Commission may waive venue
and jurisdictional defenses to the extent it adopts or consents to participate in
alternative dispute resolution proceedings.
ARTICLE IV
Authority to Establish Mandatory Rules
The Commission shall adopt mandatory Rules which establish:
1.
Allocation Formulas for each type of Non-Admitted Insurance coverage, which
Allocation Formulas must be used by each Compacting State and Contracting State
in acquiring Premium Tax and Clearinghouse Transaction Data from Surplus Lines
Licensees and insureds for reporting to the Clearinghouse created by the Compact
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Commission. Such Allocation Formulas will be established with input from Surplus
lines Licensees and be based upon readily available data with simplicity and
uniformity for the Surplus Line Licensee as a material consideration.
Uniform Clearinghouse Transaction Data reporting requirements for all information
reported to the Clearinghouse.
Methods by which Compacting States and Contracting States require Surplus Lines
Licensees and insureds to pay Premium Tax and to report Clearinghouse
Transaction Data to the Clearinghouse, including but not limited to processing
Clearinghouse Transaction Data through State stamping and service offices, State
insurance departments, or other State designated agencies or entities.
That Non-Admitted Insurance of Multi-State Risks shall be subject to all of the
regulatory compliance requirements of the Home State exclusively. Home State
regulatory compliance requirements applicable to Surplus Lines Insurance shall
include but not be limited to, (i) person(s) required to be licensed to sell, solicit, or
negotiate Surplus Lines Insurance; (ii) Insurer Eligibility Requirements or other
approved Non-Admitted Insurer requirements; (iii) Diligent Search; (iv) State
Transaction Documentation and Clearinghouse Transaction Data regarding the
payment of Premium Tax as set forth in this Compact and Rules to be adopted by
the Commission. Home State regulatory compliance requirements applicable to
Independently Procured Insurance placements shall include but not be limited to
providing State Transaction Documentation and Clearinghouse Transaction Data
regarding the payment of Premium Tax as set forth in this Compact and Rules to be
adopted by the Commission.
That each Compacting State and Contracting State may charge its own rate of
taxation on the premium allocated to such State based on the applicable Allocation
Formula provided that the state establishes one single rate of taxation applicable to
all Non-Admitted Insurance transactions and no other tax, fee assessment or other
charge by any governmental or quasi governmental agency be permitted.
Notwithstanding the foregoing, stamping office fees may be charged as a separate,
additional cost unless such fees are incorporated into a state’s single rate of
taxation.
That any change in the rate of taxation by any Compacting State or Contracting
State be restricted to changes made prospectively on not less than 90 days advance
notice to the Compact Commission.
That each Compacting State and Contracting State shall require Premium Tax
payments either annually, semi-annually, or quarterly utilizing one or more of the
following dates only: March 1, June 1, September 1, and December 1.
That each Compacting State and Contracting State prohibit any other State agency
or political subdivision from requiring Surplus Lines Licensees to provide
Clearinghouse Transaction Data and State Transaction Documentation other than to
the insurance department or tax officials of the Home State or one single designated
agent thereof.
The obligation of the Home State by itself, through a designated agent, surplus lines
stamping or service office, to collect Clearinghouse Transaction Data from Surplus
Line Licensees and from insureds for Independently Procured Insurance, where
applicable, for reporting to the Clearinghouse.
10. A method for the Clearinghouse to periodically report to Compacting States,
Contracting States, Surplus Lines Licensees and insureds who independently
procure insurance, all Premium Taxes owed to each of the Compacting States and
Contracting States, the dates upon which payment of such Premium Taxes are due
and a method to pay them through the Clearinghouse.
11. That each Surplus Line Licensee is required to be licensed only in the Home State
of each insured for whom Surplus Lines Insurance has been procured.
12. That a policy considered to be Surplus Lines Insurance in the insured’s Home
State shall be considered Surplus Lines Insurance in all Compacting States and
Contracting States, and taxed as a Surplus Lines transaction in all states to which a
portion of the risk is allocated. Each Compacting State and Contracting State shall
require each Surplus Lines Licensee to pay to every other Compacting State and
Contracting State Premium Taxes on each Multi-State Risk through the
Clearinghouse at such tax rate charged on surplus lines transactions in such other
Compacting States and Contracting States on the portion of the risk in each such
Compacting State and Contracting State as determined by the applicable uniform
Allocation Formula adopted by the Commission. A policy considered to be
Independently Procured Insurance in the insured’s Home State shall be
considered Independently Procured Insurance in all Compacting States and
Contracting States. Each Compacting State and Contracting State shall require the
insured to pay every other Compacting State and Contracting State the
Independently Procured Insurance Premium Tax on each Multi-State Risk through
the Clearinghouse pursuant to the uniform Allocation Formula adopted by the
Commission.
13. Uniform foreign Insurer Eligibility Requirements as authorized by the NRRA.
14. A uniform Policyholder Notice.
15. Uniform treatment of Purchasing Group Surplus Lines Insurance placements.
ARTICLE V
Powers of the Commission
The Commission shall have the following powers:
1.
To promulgate Rules and operating procedures, pursuant to Article VIII of this
Compact, which shall have the force and effect of law and shall be binding in the
Compacting States to the extent and in the manner provided in this Compact;
2.
To bring and prosecute legal proceedings or actions in the name of the Commission,
provided that the standing of any State insurance department to sue or be sued under
applicable law shall not be affected;
3.
To issue subpoenas requiring the attendance and testimony of witnesses and the
production of evidence, provided however, the Commission is not empowered to
demand or subpoena records or data from Non-Admitted Insurers;
4.
To establish and maintain offices including the creation of a Clearinghouse for the
receipt of Premium Tax and Clearinghouse Transaction Data regarding Non-
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Admitted Insurance of Multi-State Risks, Single-State Risks for states which elect
to require Surplus Lines Licensees to pay Premium Tax on Single State Risks
through the Clearinghouse and tax reporting forms;
To purchase and maintain insurance and bonds;
To borrow, accept or contract for services of personnel, including, but not limited
to, employees of a Compacting State or stamping office, pursuant to an open,
transparent, objective competitive process and procedure adopted by the
Commission;
To hire employees, professionals or specialists, and elect or appoint officers, and to
fix their compensation, define their duties and give them appropriate authority to
carry out the purposes of the Compact, and determine their qualifications, pursuant
to an open, transparent, objective competitive process and procedure adopted by the
Commission; and to establish the Commission’s personnel policies and
programs relating to conflicts of interest, rates of compensation and qualifications
of personnel, and other related personnel matters;
To accept any and all appropriate donations and grants of money, equipment,
supplies, materials and services, and to receive, utilize and dispose of the same;
provided that at all times the Commission shall avoid any appearance of
impropriety and/or conflict of interest;
To lease, purchase, accept appropriate gifts or donations of, or otherwise to own,
hold, improve or use, any property, real, personal or mixed; provided that at all
times the Commission shall avoid any appearance of impropriety and/or conflict of
interest;
To sell convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of
any property real, personal or mixed;
To provide for tax audit Rules and procedures for the Compacting States with
respect to the allocation of Premium Taxes including:
a.
Minimum audit standards, including sampling methods;
b.
Review of internal controls;
c.
Cooperation and sharing of audit responsibilities between Compacting States;
d.
Handling of refunds or credits due to overpayments or improper allocation of
Premium Taxes;
e.
Taxpayer records to be reviewed including a minimum retention period; and
f.
Authority of Compacting States to review, challenge, or re-audit taxpayer
records;
To enforce compliance by Compacting States and Contracting States with Rules,
and Bylaws pursuant to the authority set forth in Article XIV;
To provide for dispute resolution among Compacting States and Contracting States;
To advise Compacting States and Contracting States on tax-related issues relating to
insurers, insureds, Surplus Lines Licensees, agents or brokers domiciled or doing
business in Non-Compacting States, consistent with the purposes of this Compact;
To make available advice and training to those personnel in State stamping offices,
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State insurance departments or other State departments for record keeping, tax
compliance, and tax allocations; and to be a resource for State insurance
departments and other State departments;
To establish a budget and make expenditures;
To borrow money;
To appoint and oversee committees, including advisory committees comprised of
Members, State insurance regulators, State legislators or their representatives,
insurance industry and consumer representatives, and such other interested persons
as may be designated in this Compact and the Bylaws;
To establish an Executive Committee of not less than seven (7) nor more than
fifteen (15) representatives, which shall include officers elected by the Commission
and such other representatives as provided for herein and determined by the Bylaws.
Representatives of the Executive Committee shall serve a one year term.
Representatives of the Executive Committee shall be entitled to one vote each. The
Executive Committee shall have the power to act on behalf of the Commission,
with the exception of rulemaking, during periods when the Commission is not in
session. The Executive Committee shall oversee the day to day activities of the
administration of the Compact, including the activities of the Operations Committee
created under this Article and compliance and enforcement of the provisions of the
Compact, its Bylaws, and Rules, and such other duties as provided herein and as
deemed necessary;
To establish an Operations Committee of not less than seven (7) and not more than
fifteen (15) representatives to provide analysis, advice, determinations and
recommendations regarding technology, software, and systems integration to be
acquired by the Commission and to provide analysis, advice, determinations and
recommendations regarding the establishment of mandatory Rules to be adopted by
the Commission;
To enter into contracts with Contracting States so that Contracting States can utilize
the services of and fully participate in the Clearinghouse subject to the terms and
conditions set forth in such contracts;
To adopt and use a corporate seal; and
To perform such other functions as may be necessary or appropriate to achieve the
purposes of this Compact consistent with the State regulation of the business of
insurance.
ARTICLE VI
Organization of the Commission
Membership, Voting and Bylaws
a.
Each Compacting State shall have and be limited to one Member. Each State
shall determine the qualifications and the method by which it selects a
Member and set forth the selection process in the enabling provision of the
legislation which enacts this Compact. In the absence of such a provision the
Member shall be appointed by the governor of such Compacting State. Any
Member may be removed or suspended from office as provided by the law of
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the State from which he or she shall be appointed. Any vacancy occurring in
the Commission shall be filled in accordance with the laws of the Compacting
State wherein the vacancy exists.
Each Member shall be entitled to one (1) vote and shall otherwise have an
opportunity to participate in the governance of the Commission in accordance
with the Bylaws.
The Commission shall, by a majority vote of the Members, prescribe Bylaws
to govern its conduct as may be necessary or appropriate to carry out the
purposes and exercise the powers of the Compact including, but not limited
to:
i.
Establishing the fiscal year of the Commission;
ii. Providing reasonable procedures for holding meetings of the
Commission, the Executive Committee, and the Operations Committee;
iii. Providing reasonable standards and procedures: (i) for the establishment
and meetings of committees, and (ii) governing any general or specific
delegation of any authority or function of the Commission;
iv. Providing reasonable procedures for calling and conducting meetings of
the Commission that consist of a majority of Commission Members,
ensuring reasonable advance notice of each such meeting and providing
for the right of citizens to attend each such meeting with enumerated
exceptions designed to protect the public’s interest, the privacy of
individuals, and insurers’ and Surplus Lines Licensees’
proprietary information, including trade secrets. The Commission may
meet in camera only after a majority of the entire membership votes to
close a meeting in toto or in part. As soon as practicable, the
Commission must make public: (i) a copy of the vote to close the
meeting revealing the vote of each Member with no proxy votes
allowed, and (ii) votes taken during such meeting;
v.
Establishing the titles, duties and authority and reasonable procedures
for the election of the officers of the Commission;
vi. Providing reasonable standards and procedures for the establishment of
the personnel policies and programs of the Commission.
Notwithstanding any civil service or other similar laws of any
Compacting State, the Bylaws shall exclusively govern the personnel
policies and programs of the Commission;
vii. Promulgating a code of ethics to address permissible and prohibited
activities of Commission Members and employees; and
viii. Providing a mechanism for winding up the operations of the
Commission and the equitable disposition of any surplus funds that may
exist after the termination of the Compact after the payment and/or
reserving of all of its debts and obligations.
The Commission shall publish its Bylaws in a convenient form and file a copy
thereof and a copy of any amendment thereto, with the appropriate agency or
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officer in each of the Compacting States.
Executive Committee, Personnel and Chairperson
a.
An Executive Committee of the Commission ("Executive Committee") shall
be established. All actions, of the Executive Committee, including compliance
and enforcement are subject to the review and ratification of the Commission
as provided in the Bylaws.
The Executive Committee shall have no more than fifteen (15)
representatives, or one for each State if there are less than fifteen (15)
Compacting States, who shall serve for a term and be established in
accordance with the Bylaws.
b.
The Executive Committee shall have such authority and duties as may be set
forth in the Bylaws, including but not limited to:
i.
Managing the affairs of the Commission in a manner consistent with the
Bylaws and purposes of the Commission;
ii. Establishing and overseeing an organizational structure within, and
appropriate procedures for the Commission to provide for the creation of
Rules and operating procedures;
iii. Overseeing the offices of the Commission; and
iv. Planning, implementing, and coordinating communications and
activities with other State, federal and local government organizations in
order to advance the goals of the Commission.
c.
The Commission shall annually elect officers from the Executive Committee,
with each having such authority and duties, as may be specified in the Bylaws.
d.
The Executive Committee may, subject to the approval of the Commission,
appoint or retain an executive director for such period, upon such terms and
conditions and for such compensation as the Commission may deem
appropriate. The executive director shall serve as secretary to the
Commission, but shall not be a Member of the Commission. The executive
director shall hire and supervise such other persons as may be authorized by
the Commission.
Operations Committee
a.
An Operations Committee shall be established. All actions of the Operations
Committee are subject to the review and oversight of the Commission and the
Executive Committee and must be approved by the Commission. The
Executive Committee will accept the determinations and recommendations of
the Operations Committee unless good cause is shown why such
determinations and recommendations should not be approved. Any disputes as
to whether good cause exists to reject any determination or recommendation
of the Operations Committee shall be resolved by the majority vote of the
Commission.
The Operations Committee shall have no more than fifteen (15)
representatives or one for each State if there are less than fifteen (15)
Compacting States, who shall serve for a term and shall be established as set
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forth in the Bylaws.
The Operations Committee shall have responsibility for:
i.
Evaluating technology requirements for the Clearinghouse, assessing
existing systems used by state regulatory agencies and state stamping
offices to maximize the efficiency and successful integration of the
Clearinghouse technology systems with state and state stamping office
technology platforms and to minimize costs to the states, state stamping
offices and the Clearinghouse;
ii. Making recommendations to the Executive Committee based on its
analysis and determination of the Clearinghouse technology
requirements and compatibility with existing state and state stamping
office systems;
iii. Evaluating the most suitable proposals for adoption as mandatory Rules,
assessing such proposals for ease of integration by states, and likelihood
of successful implementation and to report to the Executive Committee
its determinations and recommendations; and
iv. Such other duties and responsibilities as are delegated to it by the
Bylaws, the Executive Committee or the Commission.
b.
All representatives of the Operations Committee shall be individuals who
have extensive experience and/or employment in the Surplus Lines Insurance
business including but not limited to executives and attorneys employed by
Surplus Line Insurers, Surplus Line Licensees, Law Firms, State Insurance
Departments and/or State stamping offices. Operations Committee
representatives from Compacting States which utilize the services of a state
stamping office must appoint the Chief Operating Officer or a senior manager
of the state stamping office to the Operations Committee.
Legislative and Advisory Committees
a.
A legislative committee comprised of State legislators or their designees shall
be established to monitor the operations of and make recommendations to, the
Commission, including the Executive Committee; provided that the manner of
selection and term of any legislative committee member shall be as set forth in
the Bylaws. Prior to the adoption by the Commission of any Uniform
Standard, revision to the Bylaws, annual budget or other significant matter as
may be provided in the Bylaws, the Executive Committee shall consult with
and report to the legislative committee.
b.
The Commission may establish additional advisory committees as its Bylaws
may provide for the carrying out of its functions.
Corporate Records of the Commission
The Commission shall maintain its corporate books and records in accordance with
the Bylaws.
Qualified Immunity, Defense and Indemnification
a.
The Members, officers, executive director, employees and representatives of
the Commission, the Executive Committee and any other Committee of the
1.
2.
3.
4.
Commission shall be immune from suit and liability, either personally or in
their official capacity, for any claim for damage to or loss of property or
personal injury or other civil liability caused by or arising out of any actual or
alleged act, error or omission that occurred, or that the person against whom
the claim is made had a reasonable basis for believing occurred within the
scope of Commission employment, duties or responsibilities; provided that
nothing in this paragraph shall be construed to protect any such person from
suit and/or liability for any damage, loss, injury or liability caused by the
intentional or willful or wanton misconduct of that person.
b.
The Commission shall defend any Member, officer, executive director,
employee or representative of the Commission, the Executive Committee or
any other Committee of the Commission in any civil action seeking to impose
liability arising out of any actual or alleged act, error or omission that occurred
within the scope of Commission employment, duties or responsibilities, or
that the person against whom the claim is made had a reasonable basis for
believing occurred within the scope of Commission employment, duties or
responsibilities; provided that nothing herein shall be construed to prohibit
that person from retaining his or her own counsel; and provided further, that
the actual or alleged act error or omission did not result from that person’s
intentional or willful or wanton misconduct.
c.
The Commission shall indemnify and hold harmless any Member, officer,
executive director, employee or representative of the Commission, Executive
Committee or any other Committee of the Commission for the amount of any
settlement or judgment obtained against that person arising out of any actual
or alleged act, error or omission that occurred within the scope of Commission
employment, duties or responsibilities, or that such person had a reasonable
basis for believing occurred within the scope of Commission employment,
duties or responsibilities, provided that the actual or alleged act, error or
omission did not result from the intentional or willful or wanton misconduct
of that person.
ARTICLE VII
Meetings and Acts of the Commission
The Commission shall meet and take such actions as are consistent with the
provisions of this Compact and the Bylaws.
Each Member of the Commission shall have the right and power to cast a vote to
which that Compacting State is entitled and to participate in the business and affairs
of the Commission. A Member shall vote in person or by such other means as
provided in the Bylaws. The Bylaws may provide for Members’ participation in
meetings by telephone or other means of communication.
The Commission shall meet at least once during each calendar year. Additional
meetings shall be held as set forth in the Bylaws.
Public notice shall be given of all meetings and all meetings shall be open to the
public, except as set forth in the Rules or otherwise provided in the Compact.
5.
The Commission shall promulgate Rules concerning its meetings consistent with
the principles contained in the "Government in the Sunshine Act," 5 U.S.C., Section
552(b), as may be amended.
6.
The Commission and its committees may close a meeting, or portion thereof, where
it determines by majority vote that an open meeting would be likely to:
a.
Relate solely to the Commission’s internal personnel practices and
procedures;
b.
Disclose matters specifically exempted from disclosure by federal and State
statute;
c.
Disclose trade secrets or commercial or financial information which is
privileged or confidential;
d.
Involve accusing a person of a crime, or formally censuring a person;
e.
Disclose information of a personal nature where disclosure would constitute a
clearly unwarranted invasion of personal privacy;
f.
Disclose investigative records compiled for law enforcement purposes; and
g.
Specifically relate to the Commission’s issuance of a subpoena, or its
participation in a civil action or other legal proceeding.
7.
For a meeting, or portion of a meeting, closed pursuant to this provision, the
Commission’s legal counsel or designee shall certify that the meeting may be
closed and shall reference each relevant exemptive provision. The Commission
shall keep minutes which shall fully and clearly describe all matters discussed in a
meeting and shall provide a full and accurate summary of actions taken, and the
reasons therefore, including a description of the views expressed and the record of a
roll call vote. All documents considered in connection with an action shall be
identified in such minutes. All minutes and documents of a closed meeting shall
remain under seal, subject to release by a majority vote of the Commission.
ARTICLE VIII
Rules and Operating Procedures:
Rulemaking Functions of the Commission
Rulemaking functions of the Commission:
1.
Rulemaking Authority.—The Commission shall promulgate reasonable Rules in
order to effectively and efficiently achieve the purposes of this Compact.
Notwithstanding the foregoing, in the event the Commission exercises its
rulemaking authority in a manner that is beyond the scope of the purposes of this
Act, or the powers granted hereunder, then such an action by the Commission shall
be invalid and have no force or effect.
2.
Rulemaking Procedure.—Rules shall be made pursuant to a rulemaking process
that substantially conforms to the "Model State Administrative Procedure Act," of
1981 Act, Uniform Laws Annotated, Vol. 15, p.1 (2000) as amended, as may be
appropriate to the operations of the Commission.
3.
Effective Date - All Rules and amendments, thereto, shall become effective as of
the date specified in each Rule, operating procedure or amendment.
4.
1.
2.
3.
1.
Not later than thirty (30) days after a Rule is promulgated, any person may file a
petition for judicial review of the Rule; provided that the filing of such a petition
shall not stay or otherwise prevent the Rule from becoming effective unless the
court finds that the Petitioner has a substantial likelihood of success. The court shall
give deference to the actions of the Commission consistent with applicable law and
shall not find the Rule to be unlawful if the Rule represents a reasonable exercise of
the Commission’s authority.
ARTICLE IX
Commission Records and Enforcement
The Commission shall promulgate Rules establishing conditions and procedures for
public inspection and copying of its information and official records, except such
information and records involving the privacy of individuals, insurers, insureds or
Surplus Lines Licensee trade secrets. State Transaction Documentation and
Clearinghouse Transaction Data collected by the Clearinghouse shall be used for
only those purposes expressed in or reasonably implied under the provisions of this
Compact and the Commission shall afford this data the broadest protections as
permitted by any applicable law for proprietary information, trade secrets or
personal data. The Commission may promulgate additional Rules under which it
may make available to federal and State agencies, including law enforcement
agencies, records and information otherwise exempt from disclosure, and may enter
into agreements with such agencies to receive or exchange information or records
subject to nondisclosure and confidentiality provisions.
Except as to privileged records, data and information, the laws of any Compacting
State pertaining to confidentiality or nondisclosure shall not relieve any Compacting
State Member of the duty to disclose any relevant records, data or information to the
Commission; provided that disclosure to the Commission shall not be deemed to
waive or otherwise affect any confidentiality requirement, and further provided that,
except as otherwise expressly provided in this Act, the Commission shall not be
subject to the Compacting State’s laws pertaining to confidentiality and
nondisclosure with respect to records, data and information in its possession.
Confidential information of the Commission shall remain confidential after such
information is provided to any Member, and the Commission shall maintain the
confidentiality of any information provided by a member that is confidential under
that Member’s State Law.
The Commission shall monitor Compacting States for compliance with duly
adopted Bylaws and Rules. The Commission shall notify any non-complying
Compacting State in writing of its noncompliance with Commission Bylaws or
Rules. If a non-complying Compacting State fails to remedy its noncompliance
within the time specified in the notice of noncompliance, the Compacting State
shall be deemed to be in default as set forth in Article XIV.
ARTICLE X
Dispute Resolution
Before a Member may bring an action in a court of competent jurisdiction for
violation of any provision, standard or requirement of the Compact, the
Commission shall attempt, upon the request of a Member, to resolve any disputes or
other issues that are subject to this Compact and which may arise between two or
more Compacting States, Contracting States or Non-Compacting States, and the
Commission shall promulgate a Rule providing alternative dispute resolution
procedures for such disputes.
2.
The Commission shall also provide alternative dispute resolution procedures to
resolve any disputes between insureds or Surplus Lines Licensees concerning a tax
calculation or allocation or related issues which are the subject of this Compact.
3.
Any alternative dispute resolution procedures shall be utilized in circumstances
where a dispute arises as to which State constitutes the Home State.
ARTICLE XI
Review of Commission Decisions
Regarding Commission decisions:
1.
Except as necessary for promulgating Rules to fulfill the purposes of this Compact,
the Commission shall not have authority to otherwise regulate insurance in the
Compacting States.
2.
Not later than thirty (30) days after the Commission has given notice of any Rule or
Allocation Formula, any third party filer or Compacting State may appeal the
determination to a review panel appointed by the Commission. The Commission
shall promulgate Rules to establish procedures for appointing such review panels
and provide for notice and hearing. An allegation that the Commission, in making
compliance or tax determinations acted arbitrarily, capriciously, or in a manner that
is an abuse of discretion or otherwise not in accordance with the law, is subject to
judicial review in accordance with Article III, Section 6.
3.
The Commission shall have authority to monitor, review and reconsider
Commission decisions upon a finding that the determinations or allocations do not
meet the relevant Rule. Where appropriate, the Commission may withdraw or
modify its determination or allocation after proper notice and hearing, subject to the
appeal process in Section 2 above.
ARTICLE XII
Finance
1.
The Commission shall pay or provide for the payment of the reasonable expenses of
its establishment and organization. To fund the cost of its initial operations the
Commission may accept contributions, grants, and other forms of funding from the
State stamping offices, Compacting States and other sources.
2.
The Commission shall collect a fee payable by the insured directly or through a
Surplus Lines Licensee on each transaction processed through the Compact
Clearinghouse, to cover the cost of the operations and activities of the Commission
and its staff in a total amount sufficient to cover the Commission’s annual
budget.
3.
The Commission’s budget for a fiscal year shall not be approved until it has
been subject to notice and comment as set forth in Article VIII of this Compact.
4.
5.
6.
7.
1.
2.
The Commission shall be regarded as performing essential governmental functions
in exercising such powers and functions and in carrying out the provisions of this
Compact and of any law relating thereto, and shall not be required to pay any taxes
or assessments of any character, levied by any State or political subdivision thereof,
upon any of the property used by it for such purposes, or any income or revenue
therefrom, including any profit from a sale or exchange.
The Commission shall keep complete and accurate accounts of all its internal
receipts, including grants and donations, and disbursements for all funds under its
control. The internal financial accounts of the Commission shall be subject to the
accounting procedures established under its Bylaws. The financial accounts and
reports including the system of internal controls and procedures of the Commission
shall be audited annually by an independent certified public accountant. Upon the
determination of the Commission, but not less frequently than every three (3) years,
the review of the independent auditor shall include a management and performance
audit of the Commission. The Commission shall make an annual report to the
Governor and legislature of the Compacting States, which shall include a report of
the independent audit. The Commission’s internal accounts shall not be
confidential and such materials may be shared with the Commissioner, the
controller, or the stamping office of any Compacting State upon request provided,
however, that any work papers related to any internal or independent audit and any
information regarding the privacy of individuals, and licensees’ and
insurers’ proprietary information, including trade secrets, shall remain
confidential.
No Compacting State shall have any claim to or ownership of any property held by
or vested in the Commission or to any Commission funds held pursuant to the
provisions of this Compact.
The Commission shall not make any political contributions to candidates for elected
office, elected officials, political parties nor political action committees. The
Commission shall not engage in lobbying except with respect to changes to this
Compact.
ARTICLE XIII
Compacting States, Effective Date and Amendment
Any State is eligible to become a Compacting State.
The Compact shall become effective and binding upon legislative enactment of the
Compact into law by two (2) Compacting States, provided the Commission shall
become effective for purposes of adopting Rules, and creating the Clearinghouse
when there are a total of ten (10) Compacting States and Contracting States or,
alternatively, when there are Compacting States and Contracting States representing
greater than forty percent (40%) of the Surplus Lines Insurance premium volume
based on records of the percentage of Surplus Lines Insurance premium set forth in
Appendix A hereto. Thereafter, it shall become effective and binding as to any other
Compacting State upon enactment of the Compact into law by that State.
Notwithstanding the foregoing, the Clearinghouse operations and the duty to report
Clearinghouse Transaction Data shall begin on the first January 1st or July 1st
3.
1.
2.
following the first anniversary of the Commission effective date. For States which
join the Compact subsequent to the effective date, a start date for reporting
Clearinghouse Transaction Data shall be set by the Commission provided Surplus
Lines Licensees and all other interested parties receive not less than 90 days
advance notice.
Amendments to the Compact may be proposed by the Commission for enactment by
the Compacting States. No amendment shall become effective and binding upon the
Commission and the Compacting States unless and until all Compacting States
enact the amendment into law.
ARTICLE XIV
Withdrawal, Default and Termination
Withdrawal
a.
Once effective, the Compact shall continue in force and remain binding upon
each and every Compacting State, provided that a Compacting State may
withdraw from the Compact ("Withdrawing State") by enacting a statute
specifically repealing the statute which enacted the Compact into law.
b.
The effective date of withdrawal is the effective date of the repealing statute.
However, the withdrawal shall not apply to any tax or compliance
determinations approved on the date the repealing statute becomes effective,
except by mutual agreement of the Commission and the Withdrawing State
unless the approval is rescinded by the Commission.
c.
The Member of the Withdrawing State shall immediately notify the Executive
Committee of the Commission in writing upon the introduction of legislation
repealing this Compact in the Withdrawing State.
d.
The Commission shall notify the other Compacting States of the introduction
of such legislation within ten (10) days after its receipt of notice thereof.
e.
The Withdrawing State is responsible for all obligations, duties and liabilities
incurred through the effective date of withdrawal, including any obligations,
the performance of which extend beyond the effective date of withdrawal. To
the extent those obligations may have been released or relinquished by mutual
agreement of the Commission and the Withdrawing State, the
Commission’s determinations prior to the effective date of withdrawal
shall continue to be effective and be given full force and effect in the
Withdrawing State, unless formally rescinded by the Commission.
f.
Reinstatement following withdrawal of any Compacting State shall occur
upon the effective date of the Withdrawing State reenacting the Compact.
Default
a.
If the Commission determines that any Compacting State has at any time
defaulted ("Defaulting State") in the performance of any of its obligations or
responsibilities under this Compact, the Bylaws or duly promulgated Rules
then after notice and hearing as set forth in the Bylaws, all rights, privileges
and benefits conferred by this Compact on the Defaulting State shall be
suspended from the effective date of default as fixed by the Commission. The
3.
1.
2.
3.
4.
1.
grounds for default include, but are not limited to, failure of a Compacting
State to perform its obligations or responsibilities, and any other grounds
designated in Commission Rules. The Commission shall immediately notify
the Defaulting State in writing of the Defaulting State’s suspension
pending a cure of the default. The Commission shall stipulate the conditions
and the time period within which the Defaulting State must cure its default. If
the Defaulting State fails to cure the default within the time period specified
by the Commission, the Defaulting State shall be terminated from the
Compact and all rights, privileges and benefits conferred by this Compact
shall be terminated from the effective date of termination.
b.
Decisions of the Commission that are issued on the effective date of
termination shall remain in force in the Defaulting State in the same manner
as if the Defaulting State had withdrawn voluntarily pursuant to Section 1 of
this Article.
c.
Reinstatement following termination of any Compacting State requires a
reenactment of the Compact.
Dissolution of Compact
a.
The Compact dissolves effective upon the date of the withdrawal or default of
the Compacting State which reduces membership in the Compact to one
Compacting State.
b.
Upon the dissolution of this Compact, the Compact becomes null and void
and shall have no further force or effect, and the business and affairs of the
Commission shall be wound up and any surplus funds shall be distributed in
accordance with the Rules and Bylaws.
ARTICLE XV
Severability and Construction
The provisions of this Compact shall be severable and if any phrase, clause,
sentence or provision is deemed unenforceable, the remaining provisions of the
Compact shall be enforceable.
The provisions of this Compact shall be liberally construed to effectuate its
purposes.
Throughout this Compact the use of the singular shall include the plural and viceversa.
The headings and captions of articles, sections and sub-sections used in this
Compact are for convenience only and shall be ignored in construing the
substantive provisions of this Compact.
ARTICLE XVI
Binding Effect of Compact and Other Laws
Other Laws
a.
Nothing herein prevents the enforcement of any other law of a Compacting
State except as provided in Paragraph b. of this section.
b.
Decisions of the Commission, and any Rules, and any other requirements of
2.
the Commission shall constitute the exclusive Rule, or determination
applicable to the Compacting States. Any law or regulation regarding NonAdmitted Insurance of Multi-State Risks that is contrary to Rules of the
Commission is preempted with respect to the following:
(i) Clearinghouse Transaction Data reporting requirements;
(ii) Allocation Formula;
(iii) Clearinghouse Transaction Data collection requirements;
(iv) Premium Tax payment time frames and Rules concerning dissemination
of data among the Compacting States for Non-Admitted Insurance of
Multi-State Risks and Single-State Risks;
(v) exclusive compliance with surplus lines law of the Home State of the
insured;
(vi) Rules for reporting to a Clearinghouse for receipt and distribution of
Clearinghouse Transaction Data related to Non-Admitted Insurance of
Multi-State Risks;
(vii) Uniform foreign Insurers Eligibility Requirements;
(viii) Uniform Policyholder Notice; and
(ix) Uniform treatment of Purchasing Groups procuring Non-Admitted
Insurance.
c.
Except as stated in paragraph b, any Rule, Uniform Standard or other
requirement of the Commission shall constitute the exclusive provision that a
Commissioner may apply to compliance or tax determinations.
Notwithstanding the foregoing, no action taken by the Commission shall
abrogate or restrict: (i) the access of any person to State courts; (ii) the
availability of alternative dispute resolution under Article X of this Compact
(iii) remedies available under State law related to breach of contract, tort, or
other laws not specifically directed to compliance or tax determinations; (iv)
State law relating to the construction of insurance contracts; or (v) the
authority of the attorney general of the State, including but not limited to
maintaining any actions or proceedings, as authorized by law.
Binding Effect of this Compact
a.
All lawful actions of the Commission, including all Rules promulgated by the
Commission, are binding upon the Compacting States, except as provided
herein.
b.
All agreements between the Commission and the Compacting States are
binding in accordance with their terms.
c.
Upon the request of a party to a conflict over the meaning or interpretation of
Commission actions, and upon a majority vote of the Compacting States, the
Commission may issue advisory opinions regarding the meaning or
interpretation in dispute. This provision may be implemented by Rule at the
discretion of the Commission.
d.
In the event any provision of this Compact exceeds the constitutional limits
imposed on the legislature of any Compacting State, the obligations, duties,
powers or jurisdiction sought to be conferred by that provision upon the
Commission shall be ineffective as to that State and those obligations duties,
powers or jurisdiction shall remain in the Compacting State and shall be
exercised by the agency thereof to which those obligations, duties, powers or
jurisdiction are delegated by law in effect at the time this Compact becomes
effective.
Surplus Line Insurance Premiums by State
Appendix A
State
Premiums based on taxes paid
Share of Total Premiums
Alabama
445,746,000
1.47%
Alaska
89,453,519
0.29%
Arizona
663,703,267
2.18%
Arkansas
201,859,750
0.66%
California
5,622,450,467
18.49%
Colorado
543,781,333
1.79%
Connecticut
329,358,800
1.08%
Delaware
92,835,950
0.31%
Florida
2,660,908,760
8.75%
Georgia
895,643,150
2.95%
Hawaii
232,951,489
0.77%
Idaho
74,202,255
0.24%
Illinois
1,016,504,629
3.34%
Indiana
412,265,320
1.36%
Iowa
135,130,933
0.44%
Kansas
160,279,300
0.53%
Kentucky
167,996,133
0.55%
Louisiana
853,173,280
2.81%
Maine
60,111,200
0.20%
Maryland
434,887,600
1.43%
Massachusetts
708,640,225
2.33%
Michigan
703,357,040
2.31%
Minnesota
393,128,400
1.29%
Mississippi
263,313,175
0.87%
Missouri
404,489,860
1.33%
Montana
64,692,873
0.21%
Nebraska
92,141,167
0.30%
Nevada
354,271,514
1.17%
New Hampshire
102,946,250
0.34%
New Jersey
1,087,994,033
3.58%
New Mexico
67,608,458
0.22%
New York
2,768,618,083
9.11%
North Carolina
514,965,060
1.69%
North Dakota
36,223,943
0.12%
Ohio
342,000,000
1.12%
Oklahoma
319,526,400
1.05%
Oregon
312,702,150
1.03%
Pennsylvania
780,666,667
2.57%
Rhode Island
71,794,067
0.24%
South Carolina
412,489,825
1.36%
South Dakota
38,702,120
0.13%
Tennessee
451,775,24
1.49%
Texas
3,059,170,454
10.06%
Utah
142,593,412
0.47%
Vermont
41,919,433
0.14%
Virginia
611,530,667
2.01%
Washington
739,932,050
2.43%
West Virginia
130,476,250
0.43%
Wisconsin
248,758,333
0.82%
Wyoming
40,526,967
0.13%
Total
30,400,197,251
100.00%
This Data is 2005 Calendar Year Data excerpted from a study dated February 27, 2007,
by Mackin & Company.
Effective: June 8, 2011
History: Created 2011 Ky. Acts ch. 48, sec. 1, effective June 8, 2011.
Legislative Research Commission Note (6/8/2011). As enacted, 2011 Ky. Acts ch. 48,
sec. 1, directed that a new section of KRS 304.010 to 304.210 be created. However,
KRS Chapter 304 contains no current statutes, as they were repealed, reenacted, and
renumbered as sections of subtitles of KRS Chapter 304. Subtitle 10 of KRS Chapter
304 relates to surplus lines insurance and is numbered KRS 304.10-010 to 304.10210. The Reviser of Statutes has codified this section as a new section of Subtitle 10
of KRS Chapter 304 under the authority of KRS 7.136.
Legislative Research Commission Note (6/8/2011). 2011 Ky. Acts ch. 48, sec. 5,
provided that the provisions contained in Sections 2, 3, and 4 of that Act "shall take
effect as provided in Article XIII of Section 1 of this Act, upon legislative enactment
of the compact into law by two compacting states, provided the commission shall
become effective for purposes of adopting rules, and creating the clearinghouse when
there are a total of ten compacting states and contracting states or, alternatively, when
there are compacting states and contracting states representing greater than 40
percent of the surplus lines insurance premium volume based on records of the
percentage of surplus lines insurance." The Reviser of Statutes has determined that,
as of April 8, 2011, two states had enacted the compact, thereby triggering the initial
effective date of the compact. Since 2011 Ky. Acts ch. 48, did not contain an
emergency clause, this section became effective June 8, 2011, the normal effective
date for 2011 legislation.
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