CART Act of 2025

Bill 119 HR 1481 aims to make changes to the Internal Revenue Code of 1986 in order to create a system for taxing catastrophic risk transfer companies. These companies are responsible for providing insurance coverage for catastrophic events, such as natural disasters or large-scale accidents. The purpose of this bill is to ensure that these companies have enough capital to cover potential losses from these events.

The bill proposes to establish a specific tax structure for these companies, which would help to ensure that they are financially stable and able to fulfill their obligations in the event of a catastrophic event. This tax system would be designed to generate revenue that could be used to cover losses in the event of a major disaster.

In addition to addressing the taxation of catastrophic risk transfer companies, the bill also includes provisions for other purposes related to insurance and risk management. These provisions are intended to improve the overall stability and effectiveness of the insurance industry, particularly in relation to catastrophic events. Overall, Bill 119 HR 1481 seeks to create a more robust and sustainable system for insuring against catastrophic risks, while also ensuring that companies in this sector are financially sound and able to meet their obligations.