For more detailed information or if you would like to take action on any of the issues below, please visit the RIMS Legislative Action Center. The Legislative Action Center tutorial can be found here.
RIMS guidelines on chapters taking policy positions can be found here.
Legislation to Penalize Domestic Insurers with Offshore Affiliates
RIMS longstanding policy opposes efforts to penalize domestic insurers with foreign affiliates by imposing limits on the tax deductibility of reinsurance premiums ceded by domestic insurers to their affiliates. On August 12, 2011 both Rep. Neal and Senator Robert Menendez introduced legislation which would impose a penalty and tax on reinsurance that a foreign-owned U.S. insurance firm buys from an offshore affiliate. Earlier this year, the Obama Administration, as part of its 2012 fiscal year budget, proposed a similar onerous tax. Neither H.R. 3157 or S.1693 has seen any movement in this Congress. RIMS is on record in opposition to all these initiatives. RIMS is a member of the Coalition For Competitive Insurance Rates (CCIR), which opposes this legislation and the Administration’s proposal.
For a more in depth summary of this issue, please see the 2011 RIMS on the Hill issue brief here.
Strengthening Medicare and Repaying Taxpayers (SMART) Act of 2011
Legislation endorsed by RIMS last year did not move but has been reintroduced in the House of Representatives in this new Congress. The legislation, H.R. 1063, known as the “Stengthening Medicare and Repaying Taxpayers (SMART) Act” is bipartisan and is sponsored by Rep. Tim Murphy (R-PA) and Rep. Ron Kind (D-WI). After H.R. 1063 was introduced, it was referred to two different House committees, the Energy and Commerce Committee and the Ways and Means Committee. On October 17, 2011 Senator Wyden introduced the Senate version (S.1718) which has been referred to the Committee on Finance. For more information on H.R. 1063, please visit the RIMS Legislative Action Center.
For a more in depth summary of this issue, please see the 2011 RIMS on the Hill issue brief here.
RIMS Comments to CMS on this issue can be found here.
For RIMS full position statement on this issue click here.
Liability Risk Retention Act Modernization
RIMS fully supports efforts to modernize the Liability Risk Retention Act, such as the Risk Retention Act Modernization Act of 2011, H.R. 2126, introduced in the 112th Congress by Congressman John Campbell (R-CA) and Congressman Peter Welch (D-VT). This legislation would allow Risk Retention Groups (RRGs) and Risk Purchasing Groups (RPGs) to increase insurance coverage options to include commercial property. Currently, risk retention groups may provide generaly liability coverage, except for workers compensation, to business entities. For more information on H.R. 2126, please visit the RIMS Legislative Action Center.
For a more in depth summary of the issue, please see the 2011 RIMS on the Hill issue brief here.
Extension of National Flood Insurance Program
Legislation passed the House of Representatives on July 11, 2011 that would extend the National Flood Insurance Program for five years. The legislation also includes a number of reforms that would address solvency concerns by increasing participation in the program. The legislation has not yet passed the Senate, but has been approved for a number of short term extensions. RIMS continues to support a long term extension of the program.
Risk Committee Provisions-Passed by Congress in 2010
A RIMS proposal to require certain publicly traded financial entities with concentrated assets of at least $10 billion to establish independent risk committees. These risk committees shall be comprised of independent directors, with at least one“ risk management expert”. The Federal Reserve Board of Governors will supervise these entities and determine through a rule making process the standards and practices to be utilized, number of independent directors, and number of risk management experts. RIMS would have preferred most publicly traded companies fall under this requirement, but the provision was narrowed to include nonbank financial institutions and thrift holding companies (including insurers) of a minimum size. Notably, the Fed is granted the authority to also designate other nonfinancial entities as those appropriate for risk committee utilization.
Non-admitted and Reinsurance Reform Act of 2009 (Surplus Lines Bill)-Passed by Congress in 2010
This legislation was included in the Dodd-Frank reform legislation that was passed in 2010 and signed by President Obama. RIMS had been advocating for this legislation for several years.
Federal Insurance Office-Passed by Congress in 2010
One component of the Dodd-Frank reform legislation that was passed in 2010 was the creation of an office of insurance within the Treasury Department to collect, analyze, and disseminate information on insurance (except health insurance) to assist Congress and the Executive Branch when considering insurance-related issues, particularly those involving negotiations with foreign governments.
Specifically, the Federal Insurance Office is authorized to (a) collect, analyze, and disseminate information and issue reports regarding all lines of insurance, except health insurance; (b) establish federal policy on international insurance matters and assure that state insurance laws are consistent with agreements between the United States and a foreign government or regulatory entity; and (c) advise the Secretary on major domestic and international insurance policy issues.