HB 1123 Summary

• Creates the Surplus Lines Insurance Multistate Compliance Compact to establish uniform standards for nonadmitted insurance taxation, reporting, and regulatory requirements across participating states.

• Requires surplus lines producers to collect a 1.75% premium tax on nonadmitted insurance where the insured's home state is North Dakota and file verified reports annually by April 1st.

• Establishes definitions and requirements for eligible surplus lines insurers, exempt commercial purchasers, and "home state" determinations to standardize multistate risk allocation.

• Creates a clearinghouse operated by the compact commission to collect, process, and distribute premium tax data and allocate funds among compacting states based on uniform allocation formulas.

• Exempts exempt commercial purchasers from diligent search and affidavit requirements if the surplus lines producer discloses in writing that coverage may be available from admitted insurers with more regulatory oversight.