March 23, 2010
RICHMOND, Va.—The defeat of premium tax legislation and budget proposals was a highlight of the 2010 Virginia legislative session for the home, auto and business insurance industry, according to the Property Casualty Insurers Association of America (PCI).
These proposals would have raised Virginia’s premium tax from 2.25 percent—already a high rate as compared to most of Virginia’s neighbors—to 2.75 percent. Drivers, homeowners, renters and business owners—in short, virtually all Virginia residents—could all have been impacted with higher rates. In addition, Virginia-based insurers could have become uncompetitive in other states due to retaliatory taxes that almost all states impose on insurers from other states that have higher premium tax rates. This could have threatened the employment of many Virginia residents employed by these companies during an already difficult economic environment.
“We applaud the leadership of the House of Delegates and budget conferees for standing firm against this detrimental tax increase, especially during these difficult economic times,” said Micaela Isler, PCI’s regional manager for Virginia. “We also appreciate the firm opposition of Gov. Bob McDonnell, who has stood by his campaign pledge of no new taxes. We encourage him to maintain this position in the future.”
PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $180 billion in annual premium, 37.4 percent of the nation’s property casualty insurance. Member companies write 44 percent of the U.S. automobile insurance market, 30.7 percent of the homeowners market, 35.1 percent of the commercial property and liability market, and 41.7 percent of the private workers compensation market.