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20 questions sampled from our Life & Health bank. AI explanations shown after each answer.
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Question 1 of 20
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National-LH-I Life Policy Types
medium
Under the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA, 15 USC §8201 et seq.) and the NAIC Nonadmitted Insurance Model Act, where does a surplus-lines transaction pay premium taxes, and who is the regulator?
A
Only the insured's home state may require premium tax payment and regulate the placement; the non-admitted carrier need not be licensed in the home state but must be eligible (e.g., listed by the NAIC IID or meeting the home state's eligibility rules)
B
Every state in which any risk is located must collect its own premium tax and license the surplus lines carrier
C
Premium taxes are collected by the federal government and remitted to the states pro rata
D
Surplus lines transactions are tax-free and may be placed without any broker licensing
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