NU Online News Service, Sept. 20, 4:15 p.m. – The Senate Finance Committee has postponed a meeting set to consider legislation that would effectively eliminate most uses of corporate-owned life insurance.

The committee was scheduled to vote on the Small Business and Farm Economic Recovery Act late yesterday.

Sen. Jeff Bingaman said he would offer an amendment to the legislation that would tax businesses on the proceeds from COLI policies covering employees who die more than one year after leaving employment.

The new tax liability would apply immediately upon enactment to COLI policies entered into after July 10, 2002. Two years after enactment, the liability would apply to all policies.

The session, called a markup, has not yet been rescheduled by the committee.