Article Abstract:
The insurance industry is hoping that Congress will pass legislation defining an agent's right to depreciate renewal lists, as maintained in an Apr 1993 decision by the Supreme Court. The Internal Revenue Service (IRS) has attempted to deny this right, and can still dispute renewal list depreciation claims, despite federal tax law and the Supreme Court ruling. Legislation is needed to make the test for intangible asset depreciation more objective, thus forcing the IRS to accept the depreciations.
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Article Abstract:
The House Subcommittee on Oversight and Investigations has introduced a solvency regulation bill aimed at the insurance industry. Sponsored by Rep. John D. Dingell, the new law mandates a dual state, federal regulatory system. Interstate and foreign insurance operators will be required to meet federal insolvency standards but will be exempt from similar state statutes. However, insurers are still bound by state rate regulations, codes of conduct and policy form regulations.
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Article Abstract:
A joint performance audit of state regulatory systems revealed that states do not properly oversee financially troubled insurance companies. The biggest problems are delay, the reluctance of regulators to publicize solvency information and infrequent reviews. Also problematic is the absence of federal laws that punish insurance crimes; allow the activities of holding companies to be monitored; and mandate stiffer guaranty fund, capital and surplus requirements.
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