Two of the property/casualty insurance industry’s major trade associations noted provisions that made it to the 2016 Congressional omnibus spending bills and tax extenders legislation.
The Property Casualty Insurance Association of America and the National Association of Mutual Insurance Companies each issued releases noting the lobbying wins.
- The Policyholders Protection Act. It’s designed to protect insurance policyholders and stop federal banking regulators from tapping funds set aside to pay policyholder claims to rescue a failing affiliated bank. Nat Wieneke, PCI’s senior vice president, federal government relations, said in prepared remarks that the legislation was a top priority for his group this year.
- Cybersecurity Act of 2015. Weineke heralded the measure, which will allow companies to voluntarily share cyber breach data with the U.S. government to foster better understand about how hackers access their systems, backed by broader protection from privacy lawsuits. PCI, NAMIC and the American Insurance Association all lobbied for the provision.
- State Based Insurance Regulations. PCI lauded the addition of language in the legislation that reaffirms state based insurance regulations and reinforces the need for a domestic capital standard for federally regulated insurers over international standards. NAMIC and AIA also supported this.
- Smaller Insurer Update. A provision in the Congressional legislation changes an IRS provision allowing property/casualty insurers with direct written annual premiums not exceeding $1.2 million to be taxed on their net investment incomes. The legislative change raises the threshold to an inflation adjusted $2.2 million, indexing it to the inflation rate going forward. Jimi Grande, NAMIC’s senior vice president of federal and political affairs, said in prepared remarks that the change will help hundreds of companies “better serve their communities and protect their policyholders.”
Sources: PCI, NAMIC