§9005 — Title 5 Government Organization and Employees | U.S. Code

Summary

Federal contract terms for long-term care insurance must override any state or local law or rule about the kind, amount, or payment of coverage and benefits. States, the District of Columbia, Puerto Rico, and their local governments may not charge any tax, fee, or other payment on premiums for those policies. Insurers still must pay general taxes on their net income or profit when those taxes apply to many businesses.

Title 5, §9005

Government Organization and Employees — Source: USLM XML via OLRC

(a)The terms of any contract under this chapter which relate to the nature, provision, or extent of coverage or benefits (including payments with respect to benefits) shall supersede and preempt any State or local law, or any regulation issued thereunder, which relates to long-term care insurance or contracts.

(b)(1)No tax, fee, or other monetary payment may be imposed or collected, directly or indirectly, by any State, the District of Columbia, or the Commonwealth of Puerto Rico, or by any political subdivision or other governmental authority thereof, on, or with respect to, any premium paid for an insurance policy under this chapter.

(2)Paragraph (1) shall not be construed to exempt any company or other entity issuing a policy of insurance under this chapter from the imposition, payment, or collection of a tax, fee, or other monetary payment on the net income or profit accruing to or realized by such entity from business conducted under this chapter, if that tax, fee, or payment is applicable to a broad range of business activity.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2001—Pub. L. 107–104 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date

of 2001 AmendmentAmendment by Pub. L. 107–104 effective as if included in the enactment of section 1002 of Pub. L. 106–265, see section 3 of Pub. L. 107–104, set out as a note under section 9001 of this title.

§9005 Preemption