A group of insurance industry trade organizations expressed opposition to a draft bill that would require insurers to offer pandemic business interruption coverages. Such a measure "would threaten the very existence of the business interruption insurance market," the groups said.
A letter to US Rep. Kevin Brady (R-Texas) takes issue with Internal Revenue Service (IRS) treatment of so-called 831(b) captive insurance companies. The current COVID-19 pandemic underscores the importance of captive insurance programs to midmarket companies, the letter says, but the IRS is targeting and harassing small captives.ï»¿
Legislation recently signed into law by Utah Governor Gary Herbert will expand the business that Utah captive insurance companies are allowed to do. The new measure, HB 37, will allow Utah captives to reinsure risks ceded by any other insurer.
The Self-Insurance Institute of America, Inc. (SIIA), said in a statement that the vast majority of captive insurance participants are not only doing the right thing but are left untouched by the recent Internal Revenue Service (IRS) global settlement initiative offered last year.
The Internal Revenue Service (IRS) announced last week that around 80 percent of so-called 831(b) micro-captive owners who received settlement offers have accepted them.