HOUSE OF REPRESENTATIVES	H.R. NO.	57
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

HOUSE RESOLUTION

Support of Surplus Lines Insurance Multi-State Compliance Compact.

     WHEREAS, political and marketplace realities necessitate the modernization of state insurance regulation; and

     WHEREAS, existing state laws governing surplus lines and independently procured insurance for multi-state risks have created confusing, duplicative, and inconsistent tax and regulatory requirements; and

     WHEREAS, it is essential to streamline and improve the efficiency of the surplus lines market by eliminating duplicative and inconsistent tax and regulatory requirements among the states so that surplus lines providers may better comply with those requirements, thereby ensuring the continued availability of surplus lines insurance to consumers; and

     WHEREAS, the adoption of the surplus lines insurance multi-state compliance compact will streamline regulatory requirements by providing for:

     (1)  Exclusive single-state regulatory compliance for multi-state surplus lines and independently procured insurance placements;

     (2)  Uniform premium tax allocation formulas; and

     (3)  A clearinghouse to facilitate the correct calculation; and reporting of premium taxes due to the compacting states;

will improve coordination of regulatory resources and expertise between state insurance departments and other state agencies, as well as state surplus lines stamping offices; and

     WHEREAS, the adoption of the surplus lines insurance multi-state compliance compact will protect and facilitate the collection of premium tax revenue on surplus lines and independently procured insurance placements by the compacting states; and

     WHEREAS, the failure of the states to modernize this important area of insurance regulation will add momentum to those individuals and organizations supporting the creation of a federal insurance regulator to oversee federally chartered insurers; and

     WHEREAS, federal insurance regulation initiatives would impinge upon states' authority to regulate insurance, and ultimately affect states' ability to collect insurance premium tax; and

     WHEREAS, the National Conference of Insurance Legislators has long supported interstate compacts as an effective means to bring efficiency and uniformity to state insurance laws; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, that this body supports the adoption by the several states of the surplus lines insurance multi-state compliance compact and is committed to aggressively work towards its enactment in this State; and

     BE IT FURTHER RESOLVED that this body requests the Insurance Commissioner to work with the National Association of Insurance Commissioners in developing proposed legislation for surplus lines insurance multi-state compliance compact to be adopted by the State; and

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to be the Insurance Commissioner and the President of the National Association of Insurance Commissioners.

OFFERED BY:

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Report Title: 

Surplus Lines Insurance; Interstate Compact