NRRA
(Non-Admitted & Reinsurance Reform Act)
Information
NRRA regulations applyto Property and Casualty (other than Workers Comp).
NRRA regulations do NOT apply to Accident & Health, Life, Disability,Inland Marine, or Ocean Marine.
"Home state" of the insured is:
(1) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or
(2) If 100% of the insured risk is located out of the state referred to in #1 above, the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.
If more than one insured from an affiliated group are named insureds on a single non-admitted insurance contract, the term "home state" means the home state, as determined pursuant to (1) and (2) above, of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract.
"Principal place of business":
The NRRA does not define “principal place of business”. In general, the principal placeof business normally would be the state where the corporate/partnership headquarters are located and where the high-levl/senior officers conduct or manage the business.
Some states may seek to define “principal place of business” further and brokers should look in to the home state’s law.
Defined by NEVADA LAW (these definitions are not necessarily standard NRRA definitions):
1.The state where the insured maintains its headquarters and where the insured’s high-level officers direct, control and coordinate its business activities;
2.If the insured’s high-level officers direct, control and coordinate its business activities in more than one state, the state in which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated; or
3. If the insured’s high-level officers direct, control and coordinate its business activities outside of any state, the state to which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated.
"Principal residence" is the state where an individual insured resides for the greatest number of days during a calendar year or, if the insured's principal residence is located outside of any state, the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.
Exempt Commercial Purchaser Definition:
- Employs/retains a qualified risk manager to negotiate insurance.
- Has paid aggregate nationwide P&C premiums in excess of $100,000 within last 12 months.
- Meets at least one of the following*:
- Possesses net worth in excess of $20,000,000
- Generates annual revenues in excess of $50,000,000
- Employs more than 500 full-time employees or is a member of an affiliated group employing more than 1,000 employees in aggregate.
- Is a not-for-profit or public entity generating annual budgeted expenditures of at least $30,000,000.
- Is a municipality with a population in excess of 50,000
*Items a., b., and d. will be adjusted every 5 years to reflect the percentage change in the Consumer Price Index.