“This vital piece of bipartisan legislation has long been a top priority for RIMS and, while the Society is very pleased to see it make headway in the House of Representatives, it views this as a critical juncture that compels Senate action,” says Deborah M. Luthi, ARM, CCSA, member of RIMS board of directors and director of enterprise risk management services at Matheson. “RIMS views the surplus lines industry as central to the nation’s economic health, and H.R. 2571 will serve to bolster the industry by not only making this insurance more available, but more cost effective as well. It is imperative that the Senate move its version either separately or as part of a larger effort to reform the financial regulatory structure this year.”

 The Non-Admitted and Reinsurance Reform Act of 2009:

• Allows brokers representing large policy holders to go directly to the non-admitted market to purchase insurance;
• Requires all surplus lines carriers to meet certain financial, capital and other criteria in order to be eligible to provide insurance in states; and
• Preempts state insurance regulators from interfering in reinsurance agreements of ceding insurers domiciled in other states. 

The legislation also states that in order for commercial insurance purchasers to gain expedited access to the non-admitted market, an insured must employ a “qualified risk manager” to work with a broker. As a result of RIMS lobbying efforts, the original language was modified to provide a broader definition of a “qualified risk manager” so that most of RIMS members and other risk practitioners will qualify.  

For more information on RIMS legislative activities, visit www.RIMS.org/LegislativeAction.