Nrra Enterprise Agreement

Possible article:

Understanding the NRRA Enterprise Agreement: Benefits and Key Features

If you are a state regulator or an insurance provider operating in multiple states, you may be familiar with the Nonadmitted and Reinsurance Reform Act (NRRA) of 2010, which aimed to streamline the regulation and taxation of surplus lines insurance. Among the provisions of the NRRA is the requirement for states to enter into agreements or compacts that allow for the uniform allocation and distribution of premium taxes on nonadmitted insurance. One such agreement is the NRRA Enterprise Agreement (NEA), which is the focus of this article.

What is the NRRA Enterprise Agreement?

The NEA is a voluntary, multi-state compact that enables eligible surplus lines insurance brokers to report and pay premium taxes on a single, multistate basis. By participating in the NEA, brokers can avoid the burden of complying with different tax laws and regulations in each state where they do business. The NEA also helps states to collect and allocate the appropriate amount of premium taxes based on the risks insured and the applicable state tax rates.

The NEA is administered by the Surplus Lines Insurance Multistate Compliance Compact (SLIMPACT), which is a nonprofit organization established by the insurance industry and approved by the National Association of Insurance Commissioners (NAIC). SLIMPACT works with participating states to ensure compliance with the NEA and to provide uniform education and training for surplus lines agents and brokers.

What are the benefits of the NRRA Enterprise Agreement?

For eligible surplus lines brokers, the NEA offers several advantages, such as:

– Simplified premium tax reporting and payment: Instead of filing separate tax returns and paying taxes in each state, brokers can use a single reporting system and remit taxes to the home state of the insured. The home state then allocates the tax revenue to the states where the risks are located. This reduces administrative costs and supports a more efficient use of resources.

– Increased compliance and accountability: By using a standardized reporting system, brokers can ensure that they are complying with applicable laws and regulations in each state where they do business. The NEA also provides for the auditing and enforcement of tax liabilities, which helps to prevent fraud and evasion.

– Improved market access and competitiveness: By participating in the NEA, brokers can expand their market reach and offer their clients more options and flexibility in choosing the best coverage for their risks. This can help to increase competition, reduce prices, and stimulate innovation in the insurance market.

What are the key features of the NRRA Enterprise Agreement?

The NEA has several important features that define its scope and operation, including:

– Eligibility criteria: To participate in the NEA, a surplus lines broker must be licensed in at least one of the participating states and must meet certain requirements for financial stability, experience, and compliance. The broker must also submit a notice of intent to participate in the NEA and pay an annual fee.

– Reporting and payment obligations: The broker must report and pay premium taxes to the home state of the insured based on the risks covered and the applicable tax rates in each state. The home state must then allocate the taxes to the appropriate states based on a formula established in the NEA. The broker must also maintain records and cooperate with audits and enforcement actions as needed.

– Governing structure and procedures: The NEA establishes a governing board composed of representatives from participating states and industry associations. The board is responsible for adopting rules and regulations, resolving disputes, and overseeing the administration of the NEA. The NEA also provides for procedures for amending, withdrawing, or terminating the agreement.


The NRRA Enterprise Agreement is a useful tool for surplus lines brokers and states to comply with the NRRA and promote a more efficient and effective regulation of nonadmitted insurance. By participating in the NEA, brokers can benefit from streamlined tax reporting and compliance, while also supporting a more competitive and innovative insurance market. If you are interested in joining the NEA or learning more about its features and benefits, contact SLIMPACT or your state insurance department for guidance.