Creates special federal tax rules for “catastrophic risk transfer companies.” It exempts a defined category of dividends they pay—called qualified investment income dividends—from U.S. withholding tax when paid to nonresident aliens and foreign corporations, subject to specific exceptions set in the bill.

It also bars most states and localities from imposing premium taxes on reinsurance premiums paid to these companies. If a state does tax those premiums, the tax cannot exceed what would apply if the premiums were paid to a foreign insurer or reinsurer. The bill defines key terms and updates cross‑references in the tax code.