NAMIC Issue | Small Mutual Inflation Update

Small Mutual Inflation Update [F]

Our Position

The Small Mutual Inflation Update was signed into law by President Obama in late 2015. The new law changes Internal Revenue Code Section 831(b)(2) to reflect the inflationary impact since its enactment in 1986 and ties it to the inflation rate going forward, There are many small property/casualty insurers organized as mutual companies, originally formed to offer insurance coverage to specific groups, often in rural areas. This expansion will ensure the election continues to ensure these companies can serve and grow with their communities, and NAMIC will provide additional guidance as it is implemented.