Which term refers to the tax-sharing arrangement for non-admitted insurance?

The term that refers to the tax-sharing arrangement for non-admitted insurance is known as NIMA, which stands for Non-Admitted Insurance Multi-State Agreement. This agreement allows participating states to collect surplus lines taxes in a streamlined and coordinated manner, simplifying the process for insurers and ensuring that appropriate tax revenues are generated from non-admitted insurance placements.

NIMA is essential for the regulation of surplus lines insurance, as it provides a framework for states to work together in overseeing the non-admitted market, which often involves transactions that cross state lines. By allowing for this tax-sharing arrangement, NIMA helps facilitate compliance among insurers and supports the states in maintaining their respective tax revenues from out-of-state insurance placements.

The other terms mentioned do not specifically relate to the tax-sharing arrangement for non-admitted insurance. NAIC refers to the National Association of Insurance Commissioners, which is an organization that provides support and resources for state insurance regulators. SLCH stands for Surplus Lines Clearinghouse, a system designed to assist in the transaction and reporting of surplus lines insurance. PAI typically refers to Personal Accident Insurance, which is unrelated to surplus lines tax arrangements.