NU Online News Service, Feb. 7, 2005, 3:10 p.m. EST
A federal agency is starting to implement a new law that could help policyholder-owned life insurers.[@@]
The tax break will set a factor called the “differential earnings rate” to 0 for mutual life insurers for the taxable year starting 2004 and the “financial recomputed differential” to 0 for 2003.
The changes eliminate a tax on dividends paid to mutual life insurance companies’ policyholders.