State Legislators Ask U.S. Reserve Law

By Steven Brostoff, Washington Editor

NU Online News Service, Aug. 26, 11:50 a.m. EST, Washington?The National Conference of Insurance Legislators is asking Congress to consider legislation that would allow insurance companies to establish tax-deferred disaster reserves.

The legislation, H.R. 785, was introduced last year by Rep. Mark Foley, R-Fla., but has not advanced in the House Ways and Means Committee, which has jurisdiction over taxation.

Congress has instead been focusing on the insurance issues arising from the Sept. 11 terrorist attack.

But in a letter to Committee Chairman Bill Thomas, R-Calif., NCOIL said that Congress needs to consider the continued threat posed by catastrophic natural events.

Noting that Hurricane Andrew, which had a severe impact on the insurance industry, occurred 10 years ago, NCOIL said "there is a clear and pressing need for federal legislation that would make essential coverage available and would help pay claims stemming from similar natural disasters."

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

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State Legislators Ask U.S. Reserve Law

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