A bill that would create a federal pandemic risk backstop has been introduced in Congress. Rep. Carolyn B. Maloney (D-NY), senior member of the House Financial Services Committee, introduced H.R. 7011, the Pandemic Risk Insurance Act of 2020, on Wednesday.
Four months after a congressional hearing was held on legislation introduced last year that would allow certain risk retention groups (RRGs) to expand coverages offered to their policyholders, the future of the bill remains uncertain. Under that measure, H.R. 4523, RRGs would be allowed to offer property coverages.
A group of insurance trade associations has proposed a new federal program that would provide revenue replacement for businesses affected by future pandemics. The taxpayer-backed Business Continuity Protection Program would provide participating businesses with revenue replacement assistance for payroll, employee benefits, and operating expenses following a presidential viral emergency declaration.
Legislation that would nullify business interruption (BI) exclusions in existing US insurance policies would pose an existential threat to property-casualty insurers, according to a recent commentary from A.M. Best. In the United States, most commercial insurance policies exclude losses caused by communicable diseases or viruses.
The US Supreme Court has agreed to hear the CIC Services, LLC, challenge of the Internal Revenue Service (IRS) position that micro-captives are "transactions of interest" that should be reported to the IRS. In 2019, a federal appeals court upheld a lower court ruling supporting the position of the IRS.