[Congressional Record Volume 153, Number 103 (Monday, June 25, 2007)]
[House]
[Pages H7030-H7033]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             NONADMITTED AND REINSURANCE REFORM ACT OF 2007

  Mr. MOORE of Kansas. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 1065) to streamline the regulation of nonadmitted 
insurance and reinsurance, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1065

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Nonadmitted and Reinsurance Reform Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Effective date.

                     TITLE I--NONADMITTED INSURANCE

Sec. 101. Reporting, payment, and allocation of premium taxes.
Sec. 102. Regulation of nonadmitted insurance by insured's home State.
Sec. 103. Participation in national producer database.
Sec. 104. Uniform standards for surplus lines eligibility.
Sec. 105. Streamlined application for commercial purchasers.
Sec. 106. GAO study of nonadmitted insurance market.
Sec. 107. Definitions.

                         TITLE II--REINSURANCE

Sec. 201. Regulation of credit for reinsurance and reinsurance 
              agreements.
Sec. 202. Regulation of reinsurer solvency.
Sec. 203. Definitions.

                    TITLE III--RULE OF CONSTRUCTION

Sec. 301. Rule of Construction.

     SEC. 2. EFFECTIVE DATE.

       Except as otherwise specifically provided in this Act, this 
     Act shall take effect upon the expiration of the 12-month 
     period beginning on the date of the enactment of this Act.

                     TITLE I--NONADMITTED INSURANCE

     SEC. 101. REPORTING, PAYMENT, AND ALLOCATION OF PREMIUM 
                   TAXES.

       (a) Home State's Exclusive Authority.--No State other than 
     the home State of an insured may require any premium tax 
     payment for nonadmitted insurance.
       (b) Allocation of Nonadmitted Premium Taxes.--
       (1) In general.--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 described 
     in subsection (a).
       (2) Effective date.--Except as expressly otherwise provided 
     in such compact or other procedures, any such compact or 
     other procedures--
       (A) if adopted on or before the expiration of the 330-day 
     period that begins on the date of the enactment of this Act, 
     shall apply to any premium taxes that, on or after such date 
     of enactment, are required to be paid to any State that is 
     subject to such compact or procedures; and
       (B) if adopted after the expiration of such 330-day period, 
     shall apply to any premium taxes that, on or after January 1 
     of the first calendar year that begins after the expiration 
     of such 330-day period, are required to be paid to any State 
     that is subject to such compact or procedures.
       (3) Report.--Upon the expiration of the 330-day period 
     referred to in paragraph (2), the NAIC may submit a report to 
     the Committee on Financial Services and Committee on the 
     Judiciary of the House of Representatives and the Committee 
     on Banking, Housing, and Urban Affairs of the Senate 
     identifying and describing any compact or other procedures 
     for allocation among the States of premium taxes that have 
     been adopted during such period by any States.
       (4) Nationwide system.--The Congress intends that each 
     State adopt a nationwide or uniform procedure, such as an 
     interstate compact, that provides for the reporting, payment, 
     collection, and allocation of premium taxes for nonadmitted 
     insurance consistent with this section.
       (c) Allocation Based on Tax Allocation Report.--To 
     facilitate the payment of premium taxes among the States, an 
     insured's

[[Page H7031]]

     home State may require surplus lines brokers and insureds who 
     have independently procured insurance to annually file tax 
     allocation reports with the insured's home State detailing 
     the portion of the nonadmitted insurance policy premium or 
     premiums attributable to properties, risks or exposures 
     located in each State. The filing of a nonadmitted insurance 
     tax allocation report and the payment of tax may be made by a 
     person authorized by the insured to act as its agent.

     SEC. 102. REGULATION OF NONADMITTED INSURANCE BY INSURED'S 
                   HOME STATE.

       (a) Home State Authority.--Except as otherwise provided in 
     this section, the placement of nonadmitted insurance shall be 
     subject to the statutory and regulatory requirements solely 
     of the insured's home State.
       (b) Broker Licensing.--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 nonadmitted insurance 
     with respect to such insured.
       (c) Enforcement Provision.--Any law, regulation, provision, 
     or action of any State that applies or purports to apply to 
     nonadmitted insurance sold to, solicited by, or negotiated 
     with an insured whose home State is another State shall be 
     preempted with respect to such application.
       (d) Workers' Compensation Exception.--This section may not 
     be construed to preempt any State law, rule, or regulation 
     that restricts the placement of workers' compensation 
     insurance or excess insurance for self-funded workers' 
     compensation plans with a nonadmitted insurer.

     SEC. 103. PARTICIPATION IN NATIONAL PRODUCER DATABASE.

       After the expiration of the 2-year period beginning on the 
     date of the enactment of this Act, a State may not collect 
     any fees relating to licensing of an individual or entity as 
     a surplus lines broker 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 brokers 
     and the renewal of such licenses.

     SEC. 104. UNIFORM STANDARDS FOR SURPLUS LINES ELIGIBILITY.

       A State may not--
       (1) impose eligibility requirements on, or otherwise 
     establish eligibility criteria for, nonadmitted insurers 
     domiciled in a United States jurisdiction, except in 
     conformance with section 5A(2) and 5C(2)(a) of the Non-
     Admitted Insurance Model Act; and
       (2) prohibit a surplus lines broker from placing 
     nonadmitted insurance with, or procuring nonadmitted 
     insurance from, a nonadmitted insurer domiciled outside the 
     United States that is listed on the Quarterly Listing of 
     Alien Insurers maintained by the International Insurers 
     Department of the NAIC.

     SEC. 105. STREAMLINED APPLICATION FOR COMMERCIAL PURCHASERS.

       A surplus lines broker seeking to procure or place 
     nonadmitted insurance in a State for an exempt commercial 
     purchaser shall not be required to satisfy any State 
     requirement to make a due diligence search to determine 
     whether the full amount or type of insurance sought by such 
     exempt commercial purchaser can be obtained from admitted 
     insurers if--
       (1) the broker procuring or placing the surplus lines 
     insurance has disclosed to the exempt commercial purchaser 
     that such insurance may or may not be available from the 
     admitted market that may provide greater protection with more 
     regulatory oversight; and
       (2) the exempt commercial purchaser has subsequently 
     requested in writing the broker to procure or place such 
     insurance from a nonadmitted insurer.

     SEC. 106. GAO STUDY OF NONADMITTED INSURANCE MARKET.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the nonadmitted insurance 
     market to determine the effect of the enactment of this title 
     on the size and market share of the nonadmitted insurance 
     market for providing coverage typically provided by the 
     admitted insurance market.
       (b) Contents.--The study shall determine and analyze--
       (1) the change in the size and market share of the 
     nonadmitted insurance market and in the number of insurance 
     companies and insurance holding companies providing such 
     business in the 18-month period that begins upon the 
     effective date of this Act;
       (2) the extent to which insurance coverage typically 
     provided by the admitted insurance market has shifted to the 
     nonadmitted insurance market;
       (3) the consequences of any change in the size and market 
     share of the nonadmitted insurance market, including 
     differences in the price and availability of coverage 
     available in both the admitted and nonadmitted insurance 
     markets;
       (4) the extent to which insurance companies and insurance 
     holding companies that provide both admitted and nonadmitted 
     insurance have experienced shifts in the volume of business 
     between admitted and nonadmitted insurance; and
       (5) the extent to which there has been a change in the 
     number of individuals who have nonadmitted insurance 
     policies, the type of coverage provided under such policies, 
     and whether such coverage is available in the admitted 
     insurance market.
       (c) Consultation With NAIC.--In conducting the study under 
     this section, the Comptroller General shall consult with the 
     NAIC.
       (d) Report.--The Comptroller General shall complete the 
     study under this section and submit a report to the Committee 
     on Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate regarding the findings of the study not later than 30 
     months after the effective date of this Act.

     SEC. 107. DEFINITIONS.

       For purposes of this title, the following definitions shall 
     apply:
       (1) Admitted insurer.--The term ``admitted insurer'' means, 
     with respect to a State, an insurer licensed to engage in the 
     business of insurance in such State.
       (2) Exempt commercial purchaser.--The term ``exempt 
     commercial purchaser'' means any person purchasing commercial 
     insurance that, at the time of placement, meets the following 
     requirements:
       (A) The person employs or retains a qualified risk manager 
     to negotiate insurance coverage.
       (B) The person has paid aggregate nationwide commercial 
     property and casualty insurance premiums in excess of 
     $100,000 in the immediately preceding 12 months.
       (C)(i) The person meets at least one of the following 
     criteria:
       (I) The person possesses a net worth in excess of 
     $20,000,000, as such amount is adjusted pursuant to clause 
     (ii).
       (II) The person generates annual revenues in excess of 
     $50,000,000, as such amount is adjusted pursuant to clause 
     (ii).
       (III) The person employs more than 500 full time or full 
     time equivalent employees per individual insured or is a 
     member of affiliated group employing more than 1,000 
     employees in the aggregate.
       (IV) The person is a not-for-profit organization or public 
     entity generating annual budgeted expenditures of at least 
     $30,000,000, as such amount is adjusted pursuant to clause 
     (ii).
       (V) The person is a municipality with a population in 
     excess of 50,000 persons.
       (ii) Effective on the fifth January 1 occurring after the 
     date of the enactment of this Act and each fifth January 1 
     occurring thereafter, the amounts in subclauses (I), (II), 
     and (IV) of clause (i) shall be adjusted to reflect the 
     percentage change for such five-year period in the Consumer 
     Price Index for All Urban Consumers published by the Bureau 
     of Labor Statistics of the Department of Labor.
       (3) Home state.--The term ``home State'' means the State in 
     which an insured maintains its principal place of business 
     or, in the case of an individual, the individual's principal 
     residence.
       (4) Independently procured insurance.--The term 
     ``independently procured insurance'' means insurance procured 
     directly by an insured from a nonadmitted insurer.
       (5) NAIC.--The term ``NAIC'' means the National Association 
     of Insurance Commissioners or any successor entity.
       (6) Nonadmitted insurance.--The term ``nonadmitted 
     insurance'' means any property and casualty insurance 
     permitted to be placed directly or through a surplus lines 
     broker with a nonadmitted insurer eligible to accept such 
     insurance.
       (7) Non-admitted insurance model act.--The term ``Non-
     Admitted Insurance Model Act'' means the provisions of the 
     Non-Admitted Insurance Model Act, as adopted by the NAIC on 
     August 3, 1994, and amended on September 30, 1996, December 
     6, 1997, October 2, 1999, and June 8, 2002.
       (8) Nonadmitted insurer.--The term ``nonadmitted insurer'' 
     means, with respect to a State, an insurer not licensed to 
     engage in the business of insurance in such State.
       (9) Qualified risk manager.--The term ``qualified risk 
     manager'' means, with respect to a policyholder of commercial 
     insurance, a person who meets all of the following 
     requirements:
       (A) The person is an employee of, or third party consultant 
     retained by, the commercial policyholder.
       (B) The person provides skilled services in loss 
     prevention, loss reduction, or risk and insurance coverage 
     analysis, and purchase of insurance.
       (C) The person--
       (i)(I) has a bachelor's degree or higher from an accredited 
     college or university in risk management, business 
     administration, finance, economics, or any other field 
     determined by a State insurance commissioner or other State 
     regulatory official or entity to demonstrate minimum 
     competence in risk management; and
       (II)(aa) has three years of experience in risk financing, 
     claims administration, loss prevention, risk and insurance 
     analysis, or purchasing commercial lines of insurance; or
       (bb) has one of the following designations:

       (AA) a designation as a Chartered Property and Casualty 
     Underwriter (in this subparagraph referred to as ``CPCU'') 
     issued by the American Institute for CPCU/Insurance Institute 
     of America;
       (BB) a designation as an Associate in Risk Management (ARM) 
     issued by the American Institute for CPCU/Insurance Institute 
     of America;
       (CC) a designation as Certified Risk Manager (CRM) issued 
     by the National Alliance for Insurance Education & Research;
       (DD) a designation as a RIMS Fellow (RF) issued by the 
     Global Risk Management Institute; or

[[Page H7032]]

       (EE) any other designation, certification, or license 
     determined by a State insurance commissioner or other State 
     insurance regulatory official or entity to demonstrate 
     minimum competency in risk management;

       (ii)(I) has at least seven years of experience in risk 
     financing, claims administration, loss prevention, risk and 
     insurance coverage analysis, or purchasing commercial lines 
     of insurance; and
       (II) has any one of the designations specified in subitems 
     (AA) through (EE) of clause (i)(II)(bb);
       (iii) has at least 10 years of experience in risk 
     financing, claims administration, loss prevention, risk and 
     insurance coverage analysis, or purchasing commercial lines 
     of insurance; or
       (iv) has a graduate degree from an accredited college or 
     university in risk management, business administration, 
     finance, economics, or any other field determined by a State 
     insurance commissioner or other State regulatory official or 
     entity to demonstrate minimum competence in risk management.
       (10) Premium tax.--The term ``premium tax'' means, with 
     respect to surplus lines or independently procured insurance 
     coverage, any tax, fee, assessment, or other charge imposed 
     by a State on an insured based on any payment made as 
     consideration for an insurance contract for such insurance, 
     including premium deposits, assessments, registration fees, 
     and any other compensation given in consideration for a 
     contract of insurance.
       (11) Surplus lines broker.--The term ``surplus lines 
     broker'' means an individual, firm, or corporation which is 
     licensed in a State to sell, solicit, or negotiate insurance 
     on properties, risks, or exposures located or to be performed 
     in a State with nonadmitted insurers.
       (12) State.--The term ``State'' includes any State of the 
     United States, the District of Columbia, the Commonwealth of 
     Puerto Rico, Guam, the Northern Mariana Islands, the Virgin 
     Islands, and American Samoa.

                         TITLE II--REINSURANCE

     SEC. 201. REGULATION OF CREDIT FOR REINSURANCE AND 
                   REINSURANCE AGREEMENTS.

       (a) Credit for Reinsurance.--If the State of domicile of a 
     ceding insurer is an NAIC-accredited State, or has financial 
     solvency requirements substantially similar to the 
     requirements necessary for NAIC accreditation, and recognizes 
     credit for reinsurance for the insurer's ceded risk, then no 
     other State may deny such credit for reinsurance.
       (b) Additional Preemption of Extraterritorial Application 
     of State Law.--In addition to the application of subsection 
     (a), all laws, regulations, provisions, or other actions of a 
     State that is not the domiciliary State of the ceding 
     insurer, except those with respect to taxes and assessments 
     on insurance companies or insurance income, are preempted to 
     the extent that they--
       (1) restrict or eliminate the rights of the ceding insurer 
     or the assuming insurer to resolve disputes pursuant to 
     contractual arbitration to the extent such contractual 
     provision is not inconsistent with the provisions of title 9, 
     United States Code;
       (2) require that a certain State's law shall govern the 
     reinsurance contract, disputes arising from the reinsurance 
     contract, or requirements of the reinsurance contract;
       (3) attempt to enforce a reinsurance contract on terms 
     different than those set forth in the reinsurance contract, 
     to the extent that the terms are not inconsistent with this 
     title; or
       (4) otherwise apply the laws of the State to reinsurance 
     agreements of ceding insurers not domiciled in that State.

     SEC. 202. REGULATION OF REINSURER SOLVENCY.

       (a) Domiciliary State Regulation.--If the State of domicile 
     of a reinsurer is an NAIC-accredited State or has financial 
     solvency requirements substantially similar to the 
     requirements necessary for NAIC accreditation, such State 
     shall be solely responsible for regulating the financial 
     solvency of the reinsurer.
       (b) Nondomiciliary States.--
       (1) Limitation on financial information requirements.--If 
     the State of domicile of a reinsurer is an NAIC-accredited 
     State or has financial solvency requirements substantially 
     similar to the requirements necessary for NAIC accreditation, 
     no other State may require the reinsurer to provide any 
     additional financial information other than the information 
     the reinsurer is required to file with its domiciliary State.
       (2) Receipt of information.--No provision of this section 
     shall be construed as preventing or prohibiting a State that 
     is not the State of domicile of a reinsurer from receiving a 
     copy of any financial statement filed with its domiciliary 
     State.

     SEC. 203. DEFINITIONS.

       For purposes of this title, the following definitions shall 
     apply:
       (1) Ceding insurer.--The term ``ceding insurer'' means an 
     insurer that purchases reinsurance.
       (2) Domiciliary state.--The terms ``State of domicile'' and 
     ``domiciliary State'' means, with respect to an insurer or 
     reinsurer, the State in which the insurer or reinsurer is 
     incorporated or entered through, and licensed.
       (3) Reinsurance.--The term ``reinsurance'' means the 
     assumption by an insurer of all or part of a risk undertaken 
     originally by another insurer.
       (4) Reinsurer.--
       (A) In general.--The term ``reinsurer'' means an insurer to 
     the extent that the insurer--
       (i) is principally engaged in the business of reinsurance;
       (ii) does not conduct significant amounts of direct 
     insurance as a percentage of its net premiums; and
       (iii) is not engaged in an ongoing basis in the business of 
     soliciting direct insurance.
       (B) Determination.--A determination of whether an insurer 
     is a reinsurer shall be made under the laws of the State of 
     domicile in accordance with this paragraph.
       (5) State.--The term ``State'' includes any State of the 
     United States, the District of Columbia, the Commonwealth of 
     Puerto Rico, Guam, the Northern Mariana Islands, the Virgin 
     Islands, and American Samoa.

                    TITLE III--RULE OF CONSTRUCTION

     SEC. 301. RULE OF CONSTRUCTION.

       Nothing in this Act or amendments to this Act shall be 
     construed to modify, impair, or supersede the application of 
     the antitrust laws. Any implied or actual conflict between 
     this Act and any amendments to this Act and the antitrust 
     laws shall be resolved in favor of the operation of the 
     antitrust laws.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Kansas (Mr. Moore) and the gentlewoman from Florida (Ms. Ginny Brown-
Waite) each will control 20 minutes.
  The Chair recognizes the gentleman from Kansas.


                             General Leave

  Mr. MOORE of Kansas. Mr. Speaker, I ask unanimous consent that all 
Members have 5 legislative days within which to revise and extend their 
remarks on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Kansas?
  There was no objection.
  Mr. MOORE of Kansas. Mr. Speaker, I yield myself such time as I may 
consume.
  I would like to thank, Mr. Speaker, Congresswoman Ginny Brown-Waite 
for her help and leadership on H.R. 1065, the Nonadmitted and 
Reinsurance Reform Act of 2007, as it has moved through the legislative 
process both in this Congress and in the 109th Congress, when it passed 
by 417-0. It has been a pleasure working with the gentlewoman and again 
I appreciate your leadership on this issue.
  I also would like to thank the Capital Markets Subcommittee Chair 
Paul Kanjorski and Ranking Member Spencer Bachus of the committee for 
their support of this measure, as well as Chairman Barney Frank for his 
support in moving this legislation to the House floor.
  I reintroduced this bill along with Congresswoman Ginny Brown-Waite 
in February with strong bipartisan support and strong support from the 
Financial Services Committee. As I previously mentioned, this 
legislation is virtually identical to legislation that passed the House 
unanimously by a vote of 417-0 in the 109th Congress. The bipartisan 
support for this bill is a good example of how both sides can come 
together to introduce and pass legislation that is not about partisan 
politics, is not about Republicans or Democrats.
  In short, H.R. 1065 would significantly improve the regulation of two 
specific areas in the commercial insurance marketplace, namely, surplus 
lines and reinsurance transactions.
  Disparate and sometimes directly conflicting State laws in the 
surplus lines market create unnecessary inefficiencies and make it 
difficult, if not impossible in some cases, for producers and others to 
comply with their legal duties.
  Testifying in 2005 in front of the Capital Markets Subcommittee on 
behalf of the National Association of Insurance Commissioners, the 
Pennsylvania insurance commissioner acknowledged the need for reform of 
surplus lines regulation, specifically with regard to the way premium 
tax allocation is handled. According to Commissioner Diane Koken, 
``Either Federal legislation or another alternative such as an 
interstate compact may be needed at some point to resolving conflicting 
State laws regulating multi-state transactions. The area where this 
will most likely be necessary is surplus lines premium tax allocation. 
Federal legislation might also be one option to consider to enable 
multi-state property risks to access surplus lines coverage in their 
home States under a single policy subject to a single set of 
requirements.''
  This legislation, Mr. Speaker, addresses the area of surplus lines 
reform

[[Page H7033]]

that I just mentioned as well as necessary reforms in the area of 
reinsurance. Specifically, this legislation would prohibit the 
extraterritorial application of State laws and allow ceding insurers 
and reinsurers to resolve disputes pursuant to contractual arbitration 
clauses. This reform is long overdue and necessary to restore 
regulatory certainty to the reinsurance market.
  Finally, I would like to note that while many legislative attempts to 
reform the insurance industry encounter some industry opposition, this 
bill, Mr. Speaker, is supported by the insurers, the reinsurers and the 
agents and brokers as well as by most of the State regulators.
  I look forward to the passage of this legislation today.
  Mr. Speaker, I reserve the balance of my time.
  Ms. GINNY BROWN-WAITE of Florida. I thank the gentleman from Kansas 
for his kind words.
  Mr. Speaker, I rise today in support of H.R. 1056, the Nonadmitted 
and Reinsurance Reform Act that my colleague, Congressman Dennis Moore, 
introduced. This bill is almost identical to the bill I introduced last 
year and the one which he referred to that passed the House by 417-0.
  For States like Florida and many others on the gulf coast where 
commercial insurance has been difficult or impossible to come by, the 
only recourse is to turn to the surplus lines or nonadmitted market. 
Certainly streamlining the rules in this market is crucial to the 
consumer and any State that is facing an insurance crisis. 
Unfortunately, today, the regulation of the surplus lines market is 
fragmented and cumbersome. Insurers and brokers who want to provide 
insurance across State lines are subjected to a myriad of different 
State tax and licensing requirements. Oftentimes these regulations will 
conflict, making it impossible for one company to comply with all of 
them.
  This situation leaves policyholders underinsured and with even less 
of a choice in providers. Moreover, most of the companies that purchase 
insurance in the nonadmitted market do so frequently. These 
sophisticated commercial entities are large corporations that employ 
educated risk advisers with a thorough understanding of the market and 
their risk exposure. Yet in most States, including my home State of 
Florida, these companies are required to shop around in the admitted 
market where they know they will be denied coverage, they know that 
this has happened before and it will happen again, they know they can't 
get it.
  They have to do this before they are permitted to shop in the surplus 
lines market. This practice is useless and cumbersome and it only adds 
to the cost for the policyholder. H.R. 1056 solves this quagmire, 
giving policyholders alternatives to restrictive markets.
  The bill also acknowledges another program in the insurance industry, 
this time on the reinsurance front. Over the years, some State 
regulators have been taking it upon themselves to throw out arbitration 
agreements between reinsurance providers and primary carriers. These 
are contractual agreements decided upon by very sophisticated parties 
on both sides of the transaction in order to settle disputes without 
having to go to court. If these agreements are valid in one State, they 
should be valid in all accredited States. Therefore, H.R. 1056 
prohibits States from voiding established, contractual arbitration 
agreements between reinsurers and primary companies.
  Obtaining insurance already has its obstacles. Adding 49 other 
States' speed bumps of inefficient State rules does not help. And with 
reinsurance rates rising at crippling numbers, companies should be 
encouraged to stay out of the courts and follow their own arbitration 
agreements. Our bill provides commonsense solutions to the nonadmitted 
and reinsurance market and it enjoys broad support. I thank Mr. Moore 
for sponsoring this important insurance reform with me.
  I urge the Members of the House to support this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MOORE of Kansas. Mr. Speaker, I yield 3 minutes to the gentleman 
from Texas (Mr. Hinojosa) who is a member of the Financial Services 
Committee as well as chairman of the Subcommittee on Higher Education.
  Mr. HINOJOSA. Mr. Speaker, I thank the Congressman from Kansas for 
yielding time to me. I rise in strong support of H.R. 1065, the 
Nonadmitted and Reinsurance Reform Act of 2007. Congressman Moore from 
Kansas has been a very effective member of the Financial Services 
Committee and I commend him for his leadership on reinsurance 
legislation. I thank the gentleman for sponsoring this much-needed 
legislation and I am proud to be a cosponsor of this bill.
  This important bill will harmonize and in some cases reduce 
regulation and taxation of this insurance by vesting the home State 
where it is headquartered with the sole authority to regulate and 
collect the taxes on a surplus lines transaction. Those taxes that will 
be collected may be distributed according to a future interstate 
compact. Absent such a compact, their distribution would be up to the 
home State.
  Mr. Speaker, this legislation will implement streamlined Federal 
standards allowing a sophisticated commercial purchaser to access 
surplus lines insurance. It will reduce uncertainty in this 
marketplace. It will also help protect contractual agreements between 
sophisticated parties entering into a reinsurance contract. For these 
reasons and more, I encourage my colleagues on both sides of the aisle 
to support this important bill.
  Ms. GINNY BROWN-WAITE of Florida. Mr. Speaker, I don't have any 
additional speakers on this bill, but I wanted to take a moment to 
indicate that it is such a pleasure to work with Mr. Moore, the 
gentleman from Kansas. He always looks at things in a very bipartisan 
manner and always with the end goal in mind of helping the consumer. I 
certainly appreciate that. I know that the policyholders out there do. 
I would certainly urge passage of this very important bill, H.R. 1056.
  With that, I yield back the balance of my time.
  Mr. MOORE of Kansas. Mr. Speaker, I would like to return the 
compliment to Ms. Ginny Brown-Waite, the gentlewoman from Florida, and 
thank her very, very much for her hard work on this legislation and for 
her leadership. She also works in a bipartisan manner in the times I 
have seen her in our committee and on the House floor. I very much 
appreciate it. We need more of that.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Kansas (Mr. Moore) that the House suspend the rules and 
pass the bill, H.R. 1065.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________