[Congressional Record Volume 156, Number 109 (Thursday, July 22, 2010)]
[Extensions of Remarks]
[Pages E1407-E1408]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 H.R. 4173, THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION 
    ACT CLARIFICATION OF INTENT WITH RESPECT TO THE NONADMITTED AND 
                         REINSURANCE REFORM ACT

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                           HON. DENNIS MOORE

                               of kansas

                    in the house of representatives

                        Thursday, July 22, 2010

  Mr. MOORE of Kansas. Madam Speaker, as a House conferee and the chief 
sponsor of H.R. 2571, the Nonadmitted and Reinsurance Reform Act, that 
was included in the conference report for H.R. 4173, the Dodd-Frank 
Wall Street Reform and Consumer Protection Act, I wanted to make one 
important clarification of intent on the final language. The President 
signed the Dodd-Frank Act into law yesterday.
  Section 521(a) of the Dodd-Frank Act is intended to require the 
broker to pay or remit all tax in a surplus lines transaction to the 
``Home State'' of the insured as defined in the Act and to no other 
state or political subdivision of any

[[Page E1408]]

state. If other states are to receive a portion of the tax payment, the 
Act provides 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.''
  Further, it is the intention that as a result of this Act, each State 
adopt nationwide uniform requirements, forms, and procedures--such as 
an interstate compact--that provides for the reporting, payment, 
collection, and allocation of all premium taxes for surplus lines 
insurance as well as all nonadmitted insurance in the insured's ``home 
state''. Uniformity in the taxation of surplus lines and nonadmitted 
insurance will be of great benefit to insurance consumers, brokers and 
the states.
  In addition, under Section 522(a) of the Dodd-Frank Act, the 
placement of all nonadmitted insurance, including surplus lines 
insurance, shall be subject solely to the statutory and regulatory 
requirements imposed directly by the insured's ``Home State'' and no 
other state. It is the intention that surplus lines and nonadmitted 
insurance transactions, particularly when the insurance covers risks in 
more than one state, be within the sole province of the insured's 
``Home State.''

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