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Regular Session, 2010 ENROLLED
SENATE RESOLUTION NO. 183
BY SENATOR LAFLEUR
A RESOLUTION
To urge and request all the members of the Louisiana Congressional Delegation to oppose
a tax on foreign reinsurance.
WHEREAS, the great state of Louisiana has been devastated by powerful and
destructive hurricanes over the past decade; and
WHEREAS, these storms have produced tremendous challenges to the property and
casualty insurance markets in our state; and
WHEREAS, the state of Louisiana, the Louisiana Legislature, and the Department
of Insurance continue to work on programs and solutions to provide more affordable and
better access to property and casualty insurance for the families and businesses of our state;
and
WHEREAS, the accessibility and affordability of property and casualty insurance
is directly impacted by the costs and availability of reinsurance; and
WHEREAS, reinsurance is a contract under which an originating insurer procures
insurance for itself under another insurer, the reinsurer, with respect to part or all of the risk
of the originating insurer; and
WHEREAS, the president of the United States and some members of Congress have
proposed taxing some foreign reinsurance companies; and
WHEREAS, legislation has been introduced to prohibit the deduction for excess
non-taxed reinsurance premiums with respect to United States risks paid to affiliates; and
WHEREAS, the reinsurance tax will benefit large United States insurers that do not
have overseas affiliates while harming those United States insurers that do have international
operations; and SR NO. 183 ENROLLED
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WHEREAS, our state and nation's economy are directly impacted by the world
economy, and thus we all operate in a global economic environment; and
WHEREAS, through a global network of foreign and domestic reinsurers, the United
States pools the risks of floods in Louisiana with disasters around the world thereby
spreading the risk of financial loss; and
WHEREAS, a tax on foreign reinsurance is a threat to insurance capacity throughout
the United States as it has the potential to decrease the supply of reinsurance; and
WHEREAS, in a post-Katrina environment, we must have all reinsurance options
available to property and casualty insurance companies operating in the state; and
WHEREAS, a tax on some foreign reinsurance companies will limit those options
and thus potentially increase the costs and decrease the availability of property and casualty
insurance for the businesses and families of the great state of Louisiana; and
WHEREAS, such a tax would further impair the good work of the Louisiana
Legislature and the Department of Insurance in their efforts to increase insurance options
and decrease costs for the people and businesses of our state.
THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana
does hereby urge and request that all members of the Louisiana Congressional Delegation
oppose a tax on foreign reinsurance.
BE IT FURTHER RESOLVED that a copy of this resolution be transmitted to the
Louisiana Congressional Delegation.
PRESIDENT OF THE SENATE