Legislators are aiming to complete work on the legislation and have it to President Obama by July 2.

The tax provision will impact insurers with assets under management of more than $50 billion.

Federal regulators will assess the fee, with higher fees to be assessed on companies with the riskiest assets.

The conferees agreed to establish the Systemic Risk Council to collect the $19 billion assessment over five years. However, since the actual cost of the bill may run higher the authority to levy additional assessments will remain for 25 years. After that time, any funds remaining in the fund will be used to pay down the federal deficit.

According to insurance industry officials who monitored the process throughout the night, the tax will be in addition to an estimated 17 basis point fee over 10 years that the Obama administration seeks to impose on large institutions over 10 years.

That fee is designed to help pay the cost of the Troubled Asset Relief Program, and is being considered by the House Ways and Means Committee and the Senate Finance Committee.

Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), said, with regard to the 'pay-for' assessments provision that was passed early this morning, AIA remains opposed to any legislation that subjects the insurance industry to pre-funding obligations.

"Given the importance of these reforms, AIA will remain active to ensure that the unique nature of insurance is preserved through the bill's final passage and into its implementation," she said.

Jimi Grande, senior vice president of federal and political affairs at the National Association of Mutual Insurance Companies, added, "Although the legislation appropriately provides some recognition that the higher the level of risk associated with a company the more they should be assessed, raising funds to pay for this huge piece of legislation based on an arbitrary threshold of how much a firm has in assets is simply unfair."

He said that any fee "should be based entirely on activities and not assets."