Several pages of the proposed “One Big Beautiful Bill Act” are devoted to deconstructing clean-energy subsidies including tax credits for electric vehicles and energy-efficient home improvements. (Credit: Vitalii Vodolazskyi/Adobe Stock)
Insurance industry trade groups responded this week to various aspects of President Donald Trump’s “Big Beautiful Bill,” the proposed tax code previously passed by the U.S. House and now under consideration by the Senate.
Both the House version as well as the Senate's reconciliation bill extend tax cuts to individuals and corporations set to expire, according to The New York Times; albiet, the Senate’s version earmarks larger corporate cuts. “The tweaks could carry vast implications for millions of families and business owners, as Republicans continue to calibrate a costly bill that could alter the trajectory of the economy and shape the nation’s financial health for generations,” Tony Romm reported for The New York Times.
The National Association of Professional Insurance Agents (PIA) is concerned about language in the bill that addresses AI regulation. In a letter, PIA urged the Senate to reject language that would place a 10-year moratorium on any state-level legislation or regulatory action related to AI.
“The business of insurance has been successfully regulated at the state level for over a century, and the McCarran-Ferguson Act of 1945 codified the longstanding exemption of the insurance industry from most federal regulation,” PIA CEO Mike Skiados said in a press release. “The local expertise of state insurance regulators has proven beneficial for consumers, insurers, and the industry at large, thanks to their ability to quickly respond to emerging insurance risks associated with changing technologies, including artificial intelligence.”
State insurance regulators are already at the forefront of AI regulation, PIA said in its statement: “The National Association of Insurance Commissioners (NAIC) adopted a Model Bulletin in 2023 that requires insurers to implement AI governance programs in accordance with all existing state and federal laws. It also offers a template by which insurance commissioners can communicate their expectations to their domiciliary carriers. As of May 2025, nearly 30 states had already adopted the NAIC’s model bulletin on the use of artificial intelligence systems by insurers.”
NAMIC likes TPLF provision
The Senate’s version of President Trump's budget also includes a provision regarding third-party litigation funding (TPLF) and how investor proceeds are taxed. The provision would allow for, “a new tax … on qualified litigation proceeds received by covered parties, which include third-party investors, domestic or foreign, who fund litigation in exchange for contingent financial interest…”
Jimi Grande, senior vice president of federal and political affairs for National Association of Mutual Insurance Companies, applauded the provision:
“NAMIC launched this effort more than a year ago as tax reform presented an opportunity to address a significant problem plaguing our court system at the expense of nearly every industry and consumers. Legal system abuse costs each American household thousands of dollars each year, and third-party litigation funding for profit is a significant driver of those costs. We applaud Senate Republicans for stepping up and doing the right thing to close this tax loophole, which has been weaponized by predatory funders — many of them foreign actors — to the detriment of the U.S. judicial system and more importantly, hardworking Americans.”
Senate Majority Leader John Thune expects to pass their version of the bill by the July Fourth holiday.
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