State insurance regulators will take a long look at a number of key issues related to federal tax policies during their upcoming meeting.[@@]
The importance of insurable interest will be one of several issues raised during a public hearing to offer the regulators’ 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 the public hearing, which will be held in Washington Aug. 12 and 13 by the National Association of Insurance Commissioners, Kansas City, Mo. Representatives of the property-casualty industry will also be present at the hearing.
David Woods, NAIFA’s CEO, praises the NAIC for its efforts, saying that it is “unique for state regulators to involve themselves in federal tax policy.”
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Their interest is important because the consumers that they represent could be adversely affected by federal lawmakers’ tax decisions, he adds.
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,” he says.
In addition, the current laws regulating corporate-owned life insurance are reasonable, and regulators need to convey that to members of Congress, Woods adds.