[Congressional Record Volume 159, Number 18 (Wednesday, February 6, 2013)]
[Extensions of Remarks]
[Page E111]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             NONADMITTED AND REINSURANCE REFORM ACT (NRRA)

                                 ______
                                 

                           HON. SCOTT GARRETT

                             of new jersey

                    in the house of representatives

                      Wednesday, February 6, 2013

  Mr. GARRETT. Mr. Speaker, I rise to address an important issue 
regarding the implementation of the Nonadmitted and Reinsurance Reform 
Act (NRRA). The NRRA is legislation that I co-authored and was signed 
into law as part of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act.
  The NRRA was drafted with the specific intention of addressing 
burdensome and often conflicting regulatory and tax compliance issues 
facing only two industries--the surplus lines and reinsurance. This 
legislation received bi-partisan support and was passed by the U.S. 
House of Representatives in multiple Congresses. At no point during the 
bill's multi-year consideration was its application to the captive 
insurance industry ever discussed.
  Unfortunately, several states have indicated that they plan to 
interpret the NRRA to also apply to the captive insurance industry. 
This was not the intent of Congress. In drafting this legislation, it 
was never contemplated to have the captive industry fall under the 
NRRA. In addition, this legislation has been subject to numerous 
Congressional hearings and has been approved by this body on multiple 
occasions. At no time was the legislation's application to the captive 
industry addressed or suggested. Furthermore, in the bill's summary, 
the intent of this legislation was clearly stated to impact only two 
specific industries--surplus lines and reinsurance.
  Inaccurate and inconsistent interpretations will cause confusion 
throughout the captive insurance industry. Should regulators implement 
this faulty interpretation, captive insurance companies would be 
subject to additional taxation and regulation--the exact opposite 
intent of the underlying legislation.
  As one of the authors of this legislation, I am committed to ensuring 
that this title of Dodd-Frank is implemented as Congress intended, and 
I look forward to working with my colleagues on the Financial Services 
Committee to address this issue if necessary in the future.

                          ____________________