Louisiana House Bill HR190

Louisiana 2010 Regular Session

• Introduced: 6/18/10
• Passed: 6/21/10

Caption

Urges and requests all members of the Louisiana Congressional Delegation to oppose a tax on foreign reinsurance

Impact

The bill emphasizes that taxation on foreign reinsurance could lead to a decrease in the supply of reinsurance. Since reinsurance plays a crucial role in pooling various risks, including those from disasters, such as floods in Louisiana, a potential tax could lead to increased costs for insurers. This could, in turn, limit insurance options for consumers, contradicting ongoing efforts by the Louisiana Legislature and the Department of Insurance to enhance affordability and access to property and casualty insurance. The resolution signifies an attempt to safeguard the economic and protective strategies in place for Louisiana residents.

Summary

House Resolution 190 (HR190) is a legislative resolution urging the Louisiana Congressional Delegation to oppose a proposed tax on foreign reinsurance. This legislation aims to protect the state's insurance market, particularly in the wake of previous hurricanes that have placed significant strain on property and casualty insurance in Louisiana. The resolution underscores the precarious position of insurance markets in a state that has faced devastating hurricanes, highlighting the necessity of maintaining robust access to reinsurance to ensure that families and businesses can secure affordable insurance coverage.

Sentiment

The sentiment surrounding HR190 appears to be generally positive towards protecting the state's interests against external taxation obstacles. There’s a clear consensus among local legislators that opposing the tax on foreign reinsurance is vital for sustaining insurance capacity in Louisiana. The resolution reflects a cooperative stance among local representatives, underscoring the criticality of ensuring that insurance remains accessible and affordable for those affected by hurricanes and other natural disasters.

Contention

While the resolution calls for collective opposition to the foreign reinsurance tax, it also suggests underlying tensions about the complexities of insurance regulation and the potential implications of federal decisions on state-level insurance markets. Contention may arise from differing perspectives on how to balance taxation with necessary funding for federal services while assuring that Louisiana's interests are prioritized in discussions surrounding national insurance policies. Additionally, the emphasis on foreign reinsurers also hints at contention over international business operations and their influence on local economies.