House committee substitute makes the following changes to 1st edition.
Amends proposed GS 58-21-3 to add that the Commissioner of Insurance (Commissioner) is also authorized to enter into a cooperative agreement or interstate agreement or compact to facilitate the collection, allocation, and disbursement of premium taxes attributable to nonadmitted insurance, provide for uniform methods of allocation and reporting among nonadmitted insurance risk classifications, and share information relating to nonadmitted insurance premium taxes among states. Also authorizes the Commissioner to enter into an interstate compact or interstate agreement to carry out the Nonadmitted and Reinsurance Reform Act of 2010. Makes organizational changes.
Amends proposed GS 58-21-4 to include the collection of the premium tax under GS 58-21-85 among the ministerial functions for which the Commissioner may contract with nongovernmental entities. Permits the NAIC or other entity with whom the Commissioner contracts to charge a reasonable fee to the insurer, insured, or other appropriate person for the functions performed. Directs the Revenue Laws Study Committee to study the potential impact of a state compact in a nonadmitted insurance multistate agreement, as detailed.
Deletes sections amending GS 58-21-85, which required licensed persons to collect and pay the Commissioner 5% of the gross premiums charged for surplus lines insurance, and GS 58-28-5(b), which concerned multistate risks and premium taxes. Adds a section to amend the definition of risk retention group in GS 58-22-10(10) as follows: the term means any corporation or other limited liability association that, among other things, (1) is only owned by persons comprising the membership of the risk retention group and who receive insurance from the group or (2) is solely owned by an organization whose (a) only members comprise the risk retention group and (b) whose only owners comprise the risk retention group and receive insurance by the group (clarifies current language). Makes other clarifying changes.
Makes a conforming change to the bill title to reflect bill content.