Libby Baney Points Out Correction on Financial Regulatory Reform

A sweeping financial regulatory reform package awaiting markup in the Senate Banking Committee includes language giving sole tax collection and regulatory authority of multistate policy risks to the policyholder's home state in the nonadmitted insurance, or surplus lines, market and reinsurance market, the Daily Report for Executives reported in its story, "Senate Financial Regulatory Reform Based on Bills on Taxing Nonadmitted Insurance."

Senate Banking Committee Chairman Chris Dodd (D-Conn.) offered the legislation (not yet numbered) on March 15 (49 DTR G-5, 3/16/10) as a substitute to the financial regulatory reform draft he released in November 2009, according to the story. His updated text includes all but matching language to the Nonadmitted and Reinsurance Reform Act of 2009 (H.R. 2571, S. 1363) (176 DTR G-2, 9/15/09) (173 DTR G-3, 9/10/09).

Libby Baney of B&D Consulting, which lobbies on behalf of National Association of Professional Surplus Lines Offices (NAPSLO), pointed to a small, nontax technical correction in the Dodd update not included in his draft text, which also duplicated the language of the companion legislation, the Daily Report for Executives reported. House-passed financial regulatory reform legislation (H.R. 4173) provided for the same nonadmitted insurance and reinsurance language, Baney noted, minus the technical correction.