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Regular Session, 2010
SENATE RESOLUTION NO. 183
BY SENATOR LAFLEUR
CONGRESS. Requests all members of the Louisiana Congressional Delegation to oppose
a tax on foreign reinsurance.
A RESOLUTION1
To urge and request all the members of the Louisiana Congressional Delegation to oppose2
a tax on foreign reinsurance.3
WHEREAS, the great state of Louisiana has been devastated by powerful and4
destructive hurricanes over the past decade; and5
WHEREAS, these storms have produced tremendous challenges to the property and6
casualty insurance markets in our state; and7
WHEREAS, the state of Louisiana, the Louisiana Legislature, and the Department8
of Insurance continue to work on programs and solutions to provide more affordable and9
better access to property and casualty insurance for the families and businesses of our state;10
and11
WHEREAS, the accessibility and affordability of property and casualty insurance12
is directly impacted by the costs and availability of reinsurance; and13
WHEREAS, reinsurance is a contract under which an originating insurer procures14
insurance for itself under another insurer, the reinsurer, with respect to part or all of the risk15
of the originating insurer; and 16
WHEREAS, the president of the United States and some members of Congress have17
proposed taxing some foreign reinsurance companies; and18 SR NO. 183
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WHEREAS, legislation has been introduced to prohibit the deduction for excess1
non-taxed reinsurance premiums with respect to United States risks paid to affiliates; and2
WHEREAS, the reinsurance tax will benefit large United States insurers that do not3
have overseas affiliates while harming those United States insurers that do have international4
operations; and5
WHEREAS, our state and nation's economy are directly impacted by the world6
economy, and thus we all operate in a global economic environment; and7
WHEREAS, through a global network of foreign and domestic reinsurers, the United8
States pools the risks of floods in Louisiana with disasters around the world thereby9
spreading the risk of financial loss; and10
WHEREAS, a tax on foreign reinsurance is a threat to insurance capacity throughout11
the United States as it has the potential to decrease the supply of reinsurance; and12
WHEREAS, in a post-Katrina environment, we must have all reinsurance options13
available to property and casualty insurance companies operating in the state; and14
WHEREAS, a tax on some foreign reinsurance companies will limit those options15
and thus potentially increase the costs and decrease the availability of property and casualty16
insurance for the businesses and families of the great state of Louisiana; and17
WHEREAS, such a tax would further impair the good work of the Louisiana18
Legislature and the Department of Insurance in their efforts to increase insurance options19
and decrease costs for the people and businesses of our state.20
THEREFORE, BE IT RESOLVED that the House of Representatives of the21
Legislature of Louisiana does hereby urge and request that all members of the Louisiana22
Congressional Delegation oppose a tax on foreign reinsurance. 23
BE IT FURTHER RESOLVED that a copy of this resolution be transmitted to the24
Louisiana Congressional Delegation.25 SR NO. 183
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Thomas L. Tyler.
DIGEST
LaFleur SR No. 183
Requests all the members of the La. Congressional Delegation to oppose a tax on foreign
reinsurance.