Tennessee Withdraws From Slimpact

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Tennessee’s governor signed into law a repeal of that state’s previously-passed enabling legislation, which allowed it to join the Surplus Lines Insurance Multi-State Compliance Compact (“SLIMPACT”). SLIMPACT was one of the two models proposed by various states in response to the invitation and recommendation to do so set forth in the Non-Admitted and Reinsurance Reform Act (“NRRA”) as part of the omnibus Dodd-Frank financial regulation overhaul passed by Congress in 2010. SLIMPACT is an interstate compact created for the purpose of allowing states to take advantage of shared administration of data, record-keeping, and premium tax allocation. Tennessee was the last state to join, which it did in June, 2011, becoming the ninth state. By its terms, SLIMPACT was slated to become effective once ten states joined. However, its future is now in doubt as it moved farther away from its ten-state goal, after stalling at nine states for the last three years. The repeal bill, Tennessee Senate Bill 356, was signed into law on April 4, 2014, and repeals Section 56-14-201 of the Tennessee Code. The bill becomes effective July 1, 2014.

Topics:  Compliance, Insurers, SLIMPACT, Surplus Lines Insurance

Published In: Insurance Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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