Bill No.: HB0242                  Drafter:  LGC

LSO No.:  11LSO-0581              Effective Date:  7/1/2011

Enrolled Act No.:  HEA0056

Chapter No.:       103

Prime Sponsor:     Representative Illoway

Catch Title:       Insurance-surplus lines.

Subject:       Regulation of surplus lines insurance.

Summary/Major Elements:

● Surplus lines are typically high risk or nontypical policies which require specialized underwriting.

● The federal government recently passed the Nonadmitted and Reinsurance Reform Act of 2010 which changes how surplus lines insurance policies are regulated but provides that states may participate in multi-state agreements for collection of premium taxes on those policies.

● This act complies with the federal law by restricting insureds whose home state is in Wyoming from procuring surplus line insurance contracts from a non-Wyoming insurer unless the insurer is licensed in Wyoming.

● This act authorizes the insurance commissioner to enter into multi-state agreements for collection of premium taxes on surplus lines policies.

● This act adds definitions necessary for management of those agreements.

● This act authorizes the collection of those premium taxes at the level allowed under federal law, and allows for the sharing of those taxes among contracting states in accordance with the federal law.