In its letter to the IRS, the NCOIL claimed these regulations are in violation of the McCarran-Ferguson Doctrine. Photo: Deemerwha studio/Shutterstock.
The National Council of Insurance Legislators (NCOIL) announced June 27 that it had submitted a comment letter to the Internal Revenue Service (IRS) denouncing proposed changes to Section 831(b) of the U.S. Tax Code.
The proposed rule (109309-22) targets micro-captives, which the IRS has called "abusive" and "schemes that lack many of the attributes of genuine insurance," and would create loss-ratio requirements of 65%, as well as loan back limitations and 10-year retroactive provisions for these entities.
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