Surplus lines insurance provisions updated

Lawmakers gave final approval April 20 to a bill that bring Nebraska’s Surplus Lines Insurance Act into compliance with federal law.

LB70, introduced by Boys Town Sen. Rich Pahls at the request of the state Department of Insurance, amends several sections of the Surplus Lines Insurance Act to conform to federal law.

Among other provisions, the bill allows the state director of insurance to join the Nonadmitted Insurance Multi-State Agreement (NIMA) and repeals a tax levied by Nebraska in order to comply with a NIMA requirement that participating states have a single tax rate.

LB70 takes effect July 21, 2011.

The bill passed on a 46-0 vote.