taxes that, on or after January 1 of the first 
calendar year that begins after the expiration of 
such 330-day period, are required to be paid to 
any State that is subject to such compact or 
procedures. 
(3) REPORT.—Upon the expiration of the 330- 
day period referred to in paragraph (2), the NAIC 
may submit a report to the Committee on Financial 
Services and Committee on the Judiciary of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
identifying and describing any compact or other pro-
cedures for allocation among the States of premium 
taxes that have been adopted during such period by 
any States. 
(4) NATIONWIDE SYSTEM.—The Congress in-
tends that each State adopt a nationwide or uniform 
procedure, such as an interstate compact, that pro-
vides for the reporting, payment, collection, and allo-
cation of premium taxes for nonadmitted insurance 
consistent with this section. 
(c) ALLOCATION BASED ON TAX ALLOCATION RE-
PORT.—To facilitate the payment of premium taxes 
among the States, an insured’s home State may require 
surplus lines brokers and insureds who have independently 
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procured insurance to annually file tax allocation reports 
with the insured’s home State detailing the portion of the 
nonadmitted insurance policy premium or premiums at-
tributable to properties, risks or exposures located in each 
State. The filing of a nonadmitted insurance tax allocation 
report and the payment of tax may be made by a person 
authorized by the insured to act as its agent. 
SEC. 102. REGULATION OF NONADMITTED INSURANCE BY 
INSURED’S HOME STATE. 
(a) HOME STATE AUTHORITY.—Except as otherwise 
provided in this section, the placement of nonadmitted in-
surance shall be subject to the statutory and regulatory 
requirements solely of the insured’s home State. 
(b) BROKER LICENSING.—No State other than an in-
sured’s home State may require a surplus lines broker to 
be licensed in order to sell, solicit, or negotiate non-
admitted insurance with respect to such insured. 
(c) ENFORCEMENT PROVISION.—Any law, regula-
tion, provision, or action of any State that applies or pur-
ports to apply to nonadmitted insurance sold to, solicited 
by, or negotiated with an insured whose home State is an-
other State shall be preempted with respect to such appli-
cation. 
(d) WORKERS’ COMPENSATION EXCEPTION.—This 
section may not be construed to preempt any State law, 
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rule, or regulation that restricts the placement of workers’ 
compensation insurance or excess insurance for self-fund-
ed workers’ compensation plans with a nonadmitted in-
surer. 
SEC. 103. PARTICIPATION IN NATIONAL PRODUCER DATA-
BASE. 
After the expiration of the 2-year period beginning 
on the date of the enactment of this Act, a State may 
not collect any fees relating to licensing of an individual 
or entity as a surplus lines broker in the State unless the 
State has in effect at such time laws or regulations that 
provide for participation by the State in the national in-
surance producer database of the NAIC, or any other 
equivalent uniform national database, for the licensure of 
surplus lines brokers and the renewal of such licenses. 
SEC. 104. UNIFORM STANDARDS FOR SURPLUS LINES ELI-
GIBILITY. 
A State may not— 
(1) impose eligibility requirements on, or other-
wise establish eligibility criteria for, nonadmitted in-
surers domiciled in a United States jurisdiction, ex-
cept in conformance with section 5A(2) and 
5C(2)(a) of the Non-Admitted Insurance Model Act; 
and 
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(2) prohibit a surplus lines broker from placing 
nonadmitted insurance with, or procuring non-
admitted insurance from, a nonadmitted insurer 
domiciled outside the United States that is listed on 
the Quarterly Listing of Alien Insurers maintained 
by the International Insurers Department of the 
NAIC. 
SEC. 105. STREAMLINED APPLICATION FOR COMMERCIAL 
PURCHASERS. 
A surplus lines broker seeking to procure or place 
nonadmitted insurance in a State for an exempt commer-
cial purchaser shall not be required to satisfy any State 
requirement to make a due diligence search to determine 
whether the full amount or type of insurance sought by 
such exempt commercial purchaser can be obtained from 
admitted insurers if— 
(1) the broker procuring or placing the surplus 
lines insurance has disclosed to the exempt commer-
cial purchaser that such insurance may or may not 
be available from the admitted market that may pro-
vide greater protection with more regulatory over-
sight; and 
(2) the exempt commercial purchaser has sub-
sequently requested in writing the broker to procure 
or place such insurance from a nonadmitted insurer. 
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SEC. 106. GAO STUDY OF NONADMITTED INSURANCE MAR-
KET. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study of the nonadmitted 
insurance market to determine the effect of the enactment 
of this title on the size and market share of the non-
admitted insurance market for providing coverage typi-
cally provided by the admitted insurance market. 
(b) CONTENTS.—The study shall determine and ana-
lyze— 
(1) the change in the size and market share of 
the nonadmitted insurance market and in the num-
ber of insurance companies and insurance holding 
companies providing such business in the 18-month 
period that begins upon the effective date of this 
Act; 
(2) the extent to which insurance coverage typi-
cally provided by the admitted insurance market has 
shifted to the nonadmitted insurance market; 
(3) the consequences of any change in the size 
and market share of the nonadmitted insurance 
market, including differences in the price and avail-
ability of coverage available in both the admitted 
and nonadmitted insurance markets; 
(4) the extent to which insurance companies 
and insurance holding companies that provide both 
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