Write Your Legislators

Subject:

Form Letter Blank Letter

Message:

My name is __________ and I am the (fill in title) _____________ for ____________  with offices in (location) which relies on affordable property and casualty insurance as a means to manage risk. I am writing to express my opposition to H.R. 3424, legislation just recently introduced by Rep. Richard Neal (D-MA).   This legislation would penalize or discriminate against domestic insurers with foreign affiliates by capping the deductibility of reinsurance premiums ceded by domestic insurers to foreign affiliates.

I am requesting that you refrain from signing on as a cosponsor and oppose efforts to move H.R. 3424 either as a separate free-standing bill, or as part of a larger package where it would be used to offset expenditures.   Currently, the United States tax code permits domestic insurers to manage their risk, without any penalty, by employing the practice of ceding reinsurance to their foreign affiliates.  The current system fosters a healthy and competitive market for reinsurance while at the same time assuring more available and affordable property and casualty insurance.  This practice is widely utilized by the industry generally, and the property/casualty industry specifically, and is considered an efficient mechanism to risk pool and diversify exposure.  The global insurance market place and the American consumer are beneficiaries of this practice as reinsurance allows an insurer to support more insurance, or provide a higher limit of protection, than its capital assets would otherwise allow.  This makes insurance for commercial consumers more available and affordable.

H.R. 3424 would have negative implications for companies such as mine because it would have a “chilling effect “ on the commonplace practice of ceding reinsurance and be highly disruptive to the global insurance market place.  If enacted, this legislation might protect a few domestic insurers at the expense of hurting domestic businesses who are commercial insurance purchasers, not to mention individuals.  Estimates indicate that, if enacted, H.R. 3424 would cost American consumers (individuals and businesses) more than $10 billion every year.  In these critical economic times, H.R. 3424 is bad public policy that the American consumer cannot afford.

Again, I respectfully request your opposition to movement of H.R. 3424.  Thank you in advance for consideration of my views.

Sincerely,
[First Name] [Last Name]