NU Online News Service, Feb. 3, 2004, 2:13 p.m. EST, Washington – The life insurance industry is praising the Senate Finance Committee’s vote in favor of a corporate-owned life insurance measure.[@@]
The measure addresses allegations of abuse of COLI while allowing use of COLI to protect an employer against the loss of employees.
Frank Keating, president of the American Council of Life Insurers, Washington, says the COLI language ensures the continued viability of the product.
“The committee got it right in tying COLI coverage to employee consent and in requiring employers to make covered employees aware that coverage can extend post-employment,” he says.
The COLI legislation is not perfect, but it represents a compromise that the agent community can support, says David Woods, chief executive officer of the National Association of Insurance and Financial Advisors, Falls Church, Va.