As part of the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) in July, 2010, Congress incorporated the Nonadmitted Insurance and Reinsurance Reform Act (“NRRA”), which provides that nonadmitted insurance will be subject to regulation only in an insured's home state, and premium tax and other regulatory requirements may not be imposed by any other state.

Regarding allocation of non-admitted premium tax, and centralized administration of the Act, the NRRA identifies a problem but reserves authority to the states the authority to “fix” the problem through voluntarily arrangements: “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.”