RIMS OPPOSES RE TAX EQUITY ACT

The Risk and Insurance Management Society Inc. (RIMS) announced its opposition to the proposed Reinsurance Tax Equity Act of 2001 (HR 1755). The decision to oppose the legislation was based on concerns that it could adversely affect the reinsurance marketplace and hamper RIMS members’ ability to successfully manage their risk exposure. RIMS member companies, which include 84 percent of the Fortune 500 companies, are responsible for purchasing the bulk of commercial insurance coverage in America. RIMS stated that in its current form, the bill extends a protectionist arm against reinsurance companies in a limited number of nations-placement that would work to the advantage of U.S. businesses and to the disadvantage of U.S.-based companies placing reinsurance with their parent companies in foreign jurisdictions.