The South Dakota Division of Insurance has issued a bulletin to surplus lines insurance brokers of changes in store for the filing of surplus lines policies.
The changes are due to the wind down of the Nonadmitted Insurance Multi-State Agreement (NIMA), which was established for the uniform filing and allocation of surplus lines premium taxes.
South Dakota became a signatory to NIMA in 2012. On April 28, 2016, the board of directors of NIMA voted to wind-down operations and dissolve the organization.
The last day for brokers to report new multi-state policies to the Surplus Lines Clearinghouse (Clearinghouse) is Sept. 30, 2016. Policy endorsements or cancellations for polices effective on or before Sept. 30, 2016, may be reported to the Clearinghouse until Sept. 30, 2017.
The Florida Surplus Lines Service Office (FSLSO) will continue serving as the Division’s vendor for all surplus lines filings and premium tax submissions.
Beginning Oct. 1, 2016, all new and renewal multi-state surplus lines policies will be filed as single-state policies with the FSLSO when South Dakota is the home state, with 100 percent of the premium being reported to and taxed by South Dakota.
Source: South Dakota Division of Insurance
Topics Agencies Excess Surplus
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