HB76 Summary

• Establishes the Surplus Lines Insurance Multi-State Compliance Compact Act to provide exclusive single-state regulatory compliance for multi-state surplus lines and independently procured insurance placements based on federal NRRA requirements.

• Creates the Surplus Lines Insurance Multi-State Compliance Compact Commission with power to adopt mandatory rules, establish allocation formulas for premium taxes, and operate a clearinghouse for premium tax distribution among participating states.

• Commission becomes effective when 10 compacting and contracting states join or when states representing more than 40 percent of surplus lines insurance premium volume participate; compact binds states upon enactment by two states.

• Amends Section 27-10-31, Code of Alabama 1975, relating to surplus line broker annual tax obligations, provided the compact is enacted into law by at least two states.

• Effective date is the first day of the third month following passage and approval by the Governor.