NRRA | Important Information
7/21/2011 is the implementation date of NRRA in Arizona. Important information can be found in the following regulatory bulletin.
This will affect your surplus lines transaction filings, as follows:
There is no change in procedures for transactions where the entirety of the insured risk is located within Arizona. 100% of the premium is allocated to Arizona.
For multi-state transactions (involving insurance that covers risks located in more than one state), it is first important to understand how to determine the "home state."
- "Home state" means the state where the insured is located as long as some of the insured risk is located in that state. The location of a business is its principal place of business. The location of an individual is the principal place of residence.
- If none of the insured risk is located in the state where the insured is located, the home state becomes the state where the greatest percentage of the insured's taxable premium is allocated for the insurance contract.
- If more than one insured within an affiliated group is covered under a single insurance contract, the home state is based on the member of the affiliated group with the largest percentage of premium attributed to it. ARS § 20-401(6).
If Arizona is the home state, you must file the transaction with 100% of the premium allocated to Arizona, and pay Arizona the entirety of the tax and stamping fees for that transaction.
If Arizona is not the home state, do not file the transaction with Arizona.