NU Online News Service, Jan. 27, 2004, 6:51 p.m. EST, Washington – The Senate Finance Committee’s draft language on corporate-owned life insurance is getting good reviews from life insurance industry groups.[@@]
The committee’s COLI draft unambiguously resolves concerns over notice and consent and coverage of rank-and-file employees, the groups write in a joint letter of support.
“The COLI draft includes a number of positive provisions that follow industry ?best practices’ concerning this critical employee benefit funding vehicle,” the groups write. “The concerns expressed in the media regarding employees being insured without adequate notice and consent are fully resolved by this COLI draft.”
The letter came in response to a request for comments on the draft by the Finance Committee.
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The letter was signed by Frank Keating, president of the American Council of Life Insurers, Washington; Bob Plybon, president of the Association for Advanced Life Underwriting, Falls Church, Va.; and David Woods, chief executive officer of the National Association of Insurance and Financial Advisors, Falls Church, Va.
The letter says the draft represents a “thoughtful compromise” relating to COLI concerns.