Description: There are practical and conceptual aspects underlying (re)insurability. Practically, something or someone is insurable if an insurer is willing provide insurance coverage at a price the applicant is willing to pay. In contrast, a conceptual view of (re)insurabiity incorporates a range of more complex factors usually considered in the insurance process. This article discusses these two approaches.

Description: In PLR 202109001, the IRS ruled that a proposed assumption reinsurance transaction between related foreign parties changing the counter party obligated to a domestic corporation (“Taxpayer”) under an existing agreement did not give rise to Taxpayer being treated as making a base erosion payment (“BEP”), as Taxpayer did not receive a deduction under §832(b)(4)(A) from the amount of gross premiums written on insurance contracts during the taxable year for premiums paid for reinsurance.