NIMA Reaches $500 Million in Reported Premium
NIMA, Inc. has announcesthat premiums reported under the Non-Admitted Insurance Multi-State Agreement (NIMA) have now exceeded $500 million in the year since the clearinghouse became operational. The clearinghouse first became operational on July 1, 2012.
NIMA, Inc. advised that $281 million of the $531 million in reported premium has been directly allocated to the six participating members of NIMA, Inc. About $250 million could have been allocated to states that are not members of NIMA. The clearinghouse collected nearly $25 million in total taxes on the reported premium.
“NIMA provides a viable opportunity for states to collect additional tax revenues while also promoting nationwide uniformity,” said Merle Scheiber, Chairman of NIMA, Inc. and South Dakota’s Director of Insurance. “The success of the program lies within the accuracy of the data as well as its availability to regulators.”
NIMA, Inc. has created a new associate membership program to allow non-participating states to gain an overview of the NIMA tax-sharing arrangement. An associate member state will be able to use the services provided by the clearinghouse during a 12-month trial period at no cost to the state, policyholders or brokers. Associate members report policy information to the clearinghouse without actually sharing tax revenue, while also receiving quarterly data reports on the amount of taxable premium that could have been allocated to their state as a participating member of NIMA, Inc. Associate members have the option of joining, or not, at the end of the trial period.
“We understand that states want to be sure NIMA participation is the best option for their state resources,” said clearinghouse manager, Tiffany Maruniak. “The Associate Membership is a no-obligation, no-cost way for states to gather supporting data to help them make that decision.” Currently, Florida, Louisiana, South Dakota, Utah, Wyoming and Puerto Rico participate in NIMA, Inc.