Eight Is Enough: Top Legislative Priorities
Industry Should Focus On For Fall
BY ARTHUR D. POSTAL
HERE ARE THE TOP eight legislative priorities that property and casualty insurance executives, and their lobbyists, should focus on if they hope to
get anything enacted on Capitol Hill this
year—or for the entire 112th Congress that
ends next year.
1. SEEK LONG-TERM NFIP EXTENSION
A five-year extension of the National
Flood Insurance Program (NFIP) would
provide the industry with the certainty
that businesses in general believe is critical
to their decision-making.
This index is provided as an additional service
to our readers. The Publisher does not assume any
liability for errors or omissions.
ACE ...................................................... 17
acegroup.com/gps
Alterra Capital...................................... 19
www.alterracap.com
Applied Underwriters ........................ BC
www.auw.com
www.auw.com/ca
Chartis ............................................... IFC
www.chartisinsurance.com/D&O
Chubb ..................................................... 9
www.chubb.com
CNA ................................................... IBC
www.cna.com
Liberty Mutual....................................... 4
libertymutualgroup.com/commauto
MSB Web Seminar .............................. 22
www.propertycasualty360.com/
TotalExposureManagement
Starr Companies ................................... 11
www.starrcompanies.com
The Institutes ....................................... 16
www.TheInstitutes.org
Zurich ................................................... 15
www.zurichna.com/stories1
Advertiser Index
Page
Advertiser Number
And a provision in the House legislation
opening the door for federal managers
of the program to limit federal liability
through purchase of reinsurance would
provide ample justification for Congress to
act promptly on a bipartisan bill.
Also, given that the current extension
of the program runs out Sept. 30—and
that the Senate has so far failed to even
introduce legislation dealing with the
issue—it is obvious that the industry
should focus on this issue above all else.
Insurance agents are seeking to slip in
language adding coverage for business-interruption and cost-of-living expenses.
This provision is in the House bill and has
withstood several assaults by members
concerned about the potential cost of such
coverage.
Given the focus on cost-cutting that
permeates Congress, it may be wise to be
careful in what you ask for. The Senate is
especially focused on reducing potential
government liability for the program—and
too much effort to protect this provision
could be costly.
2. PREPARE FOR A NEW TAX
The congressional super-committee
currently crafting a multitrillion-dollar budget-cutting proposal over
10 years is likely to seriously consider
closing a loophole in tax law that allows
foreign insurers to cede premiums to
foreign affiliates.
This proposal divides the industry
between domestic and foreign insurers—
but even foreign insurers acknowledge that
a tax committee under pressure to reduce
the deficit is going to look favorably on
closing this alleged loophole as part of a
package of revenue-raisers.
3. MAKE YOURSELF INSIGNIFICANT
Insurers are lobbying strongly to reduce
to the lowest figure possible the number
of insurers that are deemed systemically
significant by the Financial Stability
Oversight Council (FSOC).
4. SUPPORT CHANGES
IN SECONDARY-PAYMENT RULES
Legislation introduced in the House
in March would clarify industry
reporting requirements under an
existing, controversial law that requires
reimbursement to Medicare for payments
made to people who are also paid later
through workers’ compensation or
liability claims.
