The Independent Insurance Agents & Brokers of America is calling a new bill regarding reform efforts in surplus lines regulation and reinsurance supervision “another example of a positive targeted approach to regulatory reform.”

Scott Garrett

The Reinsurance Reform Act of 2009 is sponsored by Reps. Scott Garrett (R-N.J.) and Dennis Moore (D-Kan.), and is often referred to as the “surplus lines bill.” The legislation modernizes surplus lines regulation by making the policyholder’s home state the source of regulation for individual surplus lines transactions and seeks to reduce overlapping, multiple-state regulation of both reinsurer financial condition and credit-for-reinsurance on the balance sheets of ceding insurers.

Charles E. Symington, the Big I’s senior vice president for government affairs, called the bill “an excellent example of a pragmatic approach to help bring needed targeted reform to the state insurance regulatory system.”

“We appreciate Representatives Moore and Garrett for introducing this measure and look forward to working with the House and Senate for passage in the 111th Congress,” he said in a statement.

Tom Koonce, assistant vice president for federal government affairs for the Big I, added that the bill, “by applying single-state regulation and uniform standards to the nonadmitted and reinsurance markets, along with giving the state sole regulatory authority, will preserve the strengths of the state-based insurance regulatory system.”

The Big I noted that similar legislation passed the House in previous sessions of Congress with bi-partisan support and the agent association believes that such support coupled with “near-unanimous industry approval” means the model “is the most appropriate and most practical approach.”