The Massachusetts legislature is considering a bill that would require insurance companies to identify claimants who owe state taxes and to report those claimants’ names.
The measure would turn insurance companies into tax collectors, according to the American Insurance Association, which opposes the legislation. "This bill singles out the insurance industry for a new and wholly unfamiliar, inappropriate role: assisting the state in meeting its tax-collection obligations," said Paul Moran, AIA vice president, Northeast Region. "This proposal would give rise to serious and potentially damaging costs, burdens, and risks for insurance companies, their policyholders, and the Commonwealth of Massachusetts."