NCOIL Pushes For Disaster Reserves

Washington

The National Conference of Insurance Legislators is askingCongress to consider legislation that would allow insurers toestablish tax-deferred disaster reserves.

H.R. 785 was introduced last year by Rep. Mark Foley, R-Fla.,but has not advanced in the House Ways and Means Committee, whichhas jurisdiction over taxation. Congress has instead been focusingon the insurance issues arising from the Sept. 11 terroristattack.

But in a letter to Committee Chair Bill Thomas, R-Calif., NCOILsaid that Congress needs to consider the continued threat posed bycatastrophic natural events. Noting that Hurricane Andrew, whichhad a severe impact on the insurance industry, occurred 10 yearsago, NCOIL said, “there is a clear and pressing need for federallegislation that would make essential coverage available and wouldhelp pay claims stemming from similar natural disasters.”

NCOIL noted that it adopted a resolution supporting the conceptof tax-deferred disaster reserves in November of 2001.

Reproduced from National Underwriter Property &Casualty/Risk & Benefits Management Edition, September 2, 2002.Copyright 2002 by The National Underwriter Company in the serialpublication. All rights reserved.Copyright in this article as anindependent work may be held by the author.