110TH CONGRESS 
1ST SESSION H. R. 1065 
AN ACT 
To streamline the regulation of nonadmitted insurance and 
reinsurance, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Nonadmitted and Reinsurance Reform Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Effective date. 
TITLE I—NONADMITTED INSURANCE 
Sec. 101. Reporting, payment, and allocation of premium taxes. 
Sec. 102. Regulation of nonadmitted insurance by insured’s home State. 
Sec. 103. Participation in national producer database. 
Sec. 104. Uniform standards for surplus lines eligibility. 
Sec. 105. Streamlined application for commercial purchasers. 
Sec. 106. GAO study of nonadmitted insurance market. 
Sec. 107. Definitions. 
TITLE II—REINSURANCE 
Sec. 201. Regulation of credit for reinsurance and reinsurance agreements. 
Sec. 202. Regulation of reinsurer solvency. 
Sec. 203. Definitions. 
TITLE III—RULE OF CONSTRUCTION 
Sec. 301. Rule of Construction. 
SEC. 2. EFFECTIVE DATE. 
Except as otherwise specifically provided in this Act, 
this Act shall take effect upon the expiration of the 12- 
month period beginning on the date of the enactment of 
this Act.
TITLE I—NONADMITTED 
INSURANCE 
SEC. 101. REPORTING, PAYMENT, AND ALLOCATION OF 
PREMIUM TAXES. 
(a) HOME STATE’S EXCLUSIVE AUTHORITY.—No 
State other than the home State of an insured may require 
any premium tax payment for nonadmitted insurance. 
(b) ALLOCATION
OF
NONADMITTED
PREMIUM 
TAXES.— 
(1) IN GENERAL.—The States may enter into a 
compact or otherwise establish procedures to allocate 
among the States the premium taxes paid to an in-
sured’s home State described in subsection (a). 
(2) EFFECTIVE
DATE.—Except as expressly 
otherwise provided in such compact or other proce-
dures, any such compact or other procedures— 
(A) if adopted on or before the expiration 
of the 330-day period that begins on the date 
of the enactment of this Act, shall apply to any 
premium taxes that, on or after such date of 
enactment, are required to be paid to any State 
that is subject to such compact or procedures; 
and 
(B) if adopted after the expiration of such 
330-day period, shall apply to any premium
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
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,
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