The National Association of Insurance Commissioners (NAIC) in the United States has actively examined approaches to insuring against natural disasters for the last four decades. The paper quotes from earlier documents recommending among others, that the Government, in cooperation with the insurance industry and the NAIC, study and develop a mechanism that would provide additional capacity for catastrophe insurance and would allow for the accumulation of funds from which catastrophe losses could be paid without having those funds depleted by Federal income tax in loss-free years.” A possible model for implementing this concept of tax deferred catastrophe reserves was developed, and has advocated legislative changes to the Federal Tax Law since 2000. This model was revisited and recommended possible changes.