ITB 11-61: Revised Neal Bill introduced: Disallowance of deduction for non-taxed reinsurance premiums paid to affiliates

On October 12, 2011, Congressman Richard Neal (D- MA) (with his co-sponsor, Congressman William Pascrell (D-NJ)) introduced a bill (the "2011 Neal Bill") that would address the tax treatment of reinsurance with non-taxed affiliates. The bill reflects his continued concern that the use of affiliated reinsurers is a means by which U.S. insurance risks migrate to offshore reinsurance markets so as to avoid U.S. tax.