IMPORTANT NRRA LINKS

maze ladderYou don't need me to tell you that Nonadmitted & Reinsurance Reform Act (NRRA) for multi-state surplus lines insurance tax is confusing. We have to grasp it fast, as it becomes effective this month. What Lucitech is trying to do here is to provide some links to information that will remain updated for you rather than try to summarize what is happening at the time of writing. Just around the next turn is another. Welcome to Surplus Lines Insurance!

 

AIM Workflows for both 6.4.1 and a separate workflow for prior versions is available via MyVeratafore:

NAPSLO's State Legislative Review provides links to each state for the latest information from that state and I heard this is updated weekly.

NAPSLO's State Conforming/Noncoforming Legislation Tracker is a US map graph depicting to what degree each state is conforming to the NRRA legislation.

NAPSLO's State Implementation Tracker is also a US map graph depicting to what degree each state is conforming to the NRRA legislation.

Florida Surplus Lines Service Office gives up to date information on implementation of FSLSO reporting. Florida deserves it's own mention on the list...

The actual legislation as provided by Marsh Global

 

 

VERTAFORE PROCESSING OF MULTI-STATE POLICIES

Marc Beemer, Sr Training Consultant from Vertafore put on two excellent webex presentations this last week of June, demonstrating how to implement NRRA changes in AIM. Two key developers, Chris and David joined him and with live interaction from the audience, it provided a really valuable forum to glean information from both the vendor and from each other. The presentation provided demonstrations of how to implement the two workflows available at MyVertafore. Soon the power point from the presentation will also be available at MyVertafore.

 

PRIOR TO AIM 6.4.1 UPGRADE

Login to MyVertafore for workflow

Prior to the AIM system upgrade to 6.4.1., which is what many of us will face in July, the workflow requires a couple of changes in the Data Maintenance Utility (DMU). First, you need to change the security setting in the DMU to change tax computation factors. The documentation recommends setting this as low as you can go. We've heard many clients say that they will set that as low as highest underwriting managers and if someone gets a multi-state exposure before the upgrade to 6.4.1, they have to take it to a supervisor to invoice. This seems like sound practice. The second change in the DMU is to change the flag for 'Allow Countersignature' on the Surplus Lines Tax companies in the DMU. Regardless of how you choose to handle the security settings, you do need to change this setting.

Some MGA's have indicated they will handle this account by account because they don't really have that much multi-state exposures in their offices. What we've done for some clients is run some scripts to determine the impact of multi-state exposures and extract quoteid's and expiration dates to provide a schedule of accounts for which to prepare. For others we've run scripts to update that flag on the company table all at once on thier test database to let them see how this works. At this point, whatever you think you need to evaluate these changes can probably be provided pretty easily and quickly via down-and-dirty scripts on the database.

AFTER 6.4.1

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After 6.4.1 there is a whole new workflow for setting up taxes in the DMU and dramatic changes in invoicing procedures for multi-state exposures (not for single state exposures.) This will require re-training and the workflows and power-points provided by Vertafore will be invaluable. Marc alluded to the possiblity of another webex, so stay tuned to your broadcasts from Vertafore and if they have another, be sure to watch it. Be sure to check out Lucitech's AIM Upgrade Services if the idea of upgrading your AIM makes you wish you had another pair of hands.

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