The importance of insurable interest to federal tax policy will be one of several issues state insurance regulators hear about during a public hearing that marks the start of efforts to offer input into federal tax policy.
The National Association of Insurance and Financial Advisors, Falls Church, Va., and the American Council of Life Insurers, Washington, will speak during a public hearing held by the National Association of Insurance Commissioners, Kansas City, Mo. Representatives of the property-casualty industry also will be present at the public hearing in Washington on Aug. 12-13.
David Woods, NAIFAs CEO, praises the NAIC for its efforts, saying it is “unique for state regulators to involve themselves in federal tax policy.” The interest is important, he continues, because the consumers they regulate could be negatively impacted by federal lawmakers tax decisions.
Woods emphasizes that it is important to reinforce insurable interest statutes because the Senate Finance Committee already has expressed concern over the use of life insurance as an investment. “We are very much afraid that it could open the door to a broader attack on the advantages of life insurance.”
In addition, Woods says the current laws regulating corporate-owned life insurance are reasonable, and regulators need to convey that reasonableness to members of Congress.