A bill to amend the Internal Revenue Code of 1986 to provide special rules for purposes of determining if financial guaranty insurance companies are qualifying insurance corporations under the passive foreign investment company rules.
Impact
The proposed changes in the bill would allow financial guaranty insurance companies to include their unearned premium reserves in their calculation of applicable insurance liabilities, a significant shift from current practices dictated by generally accepted accounting principles. This inclusion potentially enables these companies to report a more favorable financial position, affecting their investment strategy and operational decisions. Such provisions may influence how these corporations engage with the broader financial markets and regulatory frameworks, potentially reducing the burden of compliance associated with the passive foreign investment company rules.
Summary
SB1787 is a bill aimed at amending the Internal Revenue Code of 1986 specifically regarding the treatment of financial guaranty insurance companies as qualifying insurance corporations under the passive foreign investment company rules. The bill introduces special rules that would expand the criteria by which financial guaranty insurers are classified, particularly in how their insurance liabilities are reported. This qualification could have implications for regulatory compliance and capital allocation within these firms, which primarily operate in the insurance sector.
Contention
Notably, while the bill aims to facilitate business operations for financial guaranty insurance companies, there are potential concerns among stakeholders regarding the fiscal implications. Critics may argue that loosening the qualifications could lead to increased risks in the financial system, particularly if it reduces the oversight of how these companies report their liabilities. The balance between encouraging corporate growth in the insurance sector and maintaining regulatory integrity is likely to be a point of contention in discussions surrounding the bill.
Same As
To amend the Internal Revenue Code of 1986 to provide special rules for purposes of determining if financial guaranty insurance companies are qualifying insurance corporations under the passive foreign investment company rules.
To amend the Internal Revenue Code of 1986 to provide special rules for purposes of determining if financial guaranty insurance companies are qualifying insurance corporations under the passive foreign investment company rules.
A bill to amend the Internal Revenue Code of 1986 to provide special rules for purposes of determining if financial guaranty insurance companies are qualifying insurance corporations under the passive foreign investment company rules.
To amend the Internal Revenue Code of 1986 to provide special rules for purposes of determining if financial guaranty insurance companies are qualifying insurance corporations under the passive foreign investment company rules.
To require the use of replacement cost value in determining the premium rates for flood insurance coverage under the National Flood Insurance Act, and for other purposes.
A bill to amend the Internal Revenue Code of 1986 to provide an advance refundable credit to offset certain flood insurance premiums, and for other purposes.
To amend the Federal securities laws to specify the periods for which financial statements are required to be provided by an emerging growth company, and for other purposes.
Requires each insurer subject to the Louisiana Insurance Guaranty Association Law to provide for a data transfer plan and file such plan with the commissioner of insurance
To amend the Internal Revenue Code of 1986 to provide special rules for purposes of determining if financial guaranty insurance companies are qualifying insurance corporations under the passive foreign investment company rules.