The Hartford 2014 Annual Report Download - page 129

Patient Protection and Affordable Care Act of 2010 (the "Affordable Care Act")
On March 23, 2010, the President signed the Affordable Care Act. The impact to The Hartford as an employer is consistent with other large employers. It is
too early to tell how the Affordable Care Act will impact The Hartford's businesses. The Hartford’s core business does not involve the issuance of health
insurance and we do not issue any products that insure customers under the Affordable Care Act’s individual mandate. There may be, nevertheless, impacts to
The Hartford's businesses that are too early to identify as key aspects of the law are still not fully implemented. For example, private exchanges may provide
The Hartford additional opportunities to market our group benefit products and services. Conversely, access to medical care and medical costs are a
substantial component of both disability and workers compensation products offered by The Hartford. We are monitoring the impact of the Affordable Care
Act on consumer, broker and medical provider behavior for leading indicators of changes in medical costs or loss payments primarily on the Company's
workers' compensation and disability liabilities.
Budget of the United States Government
On February 2, 2015, the Obama Administration released its “Fiscal Year 2016, Budget of the U.S. Government” (the “Budget”). Although the Administration
has not released proposed statutory language, the Budget includes proposals that if enacted, would affect the taxation of life insurance companies and certain
life insurance products. In particular, the proposals would change the method used to determine the amount of dividend income received by a life insurance
company on assets held in separate accounts used to support products, including variable life insurance and variable annuity contracts, which are eligible for
the dividends received deduction (“DRD”). The DRD reduces the amount of dividend income subject to tax and is a significant component of the difference
between the Company's actual tax expense and expected amount determined using the federal statutory tax rate of 35%. If this proposal were enacted, the
Company's actual tax expense could increase, reducing earnings.
Terrorism Risk Insurance Program Reauthorization Act of 2015 (“TRIPRA”)
On January 12, 2015, the President signed TRIPRA, extending a backstop for insurance-related losses resulting from “acts of terrorism” through the end of
2020. For additional information, see Part II, Item 7, MD&A - Enterprise Risk Management, Reinsurance as a Risk Management Strategy, Reinsurance for
Terrorism.
Guaranty Fund and Other Insurance-related Assessments
For a discussion regarding Guaranty Fund and Other Insurance-related Assessments, see Note 14 of Notes to Consolidated Financial Statements.
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For a discussion of accounting standards, see Note 1 of Notes to Consolidated Financial Statements.
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The information required by this item is set forth in the Enterprise Risk Management section of Item 7, Management’s Discussion and Analysis of Financial
Condition and Results of Operations and is incorporated herein by reference.
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See Index to Consolidated Financial Statements and Schedules elsewhere herein.
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None.
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