Treasury officials met here with representatives from the National Association of Insurance Commissioners earlier this month and asked whether the tax code is giving life insurers a subsidy.
Georgia Insurance Commissioner John Oxendine talked about the hour-long visit here during the tax policy working group session at the NAIC’s summer meeting.
The Treasury meeting, held June 6, included Oxendine; NAIC Washington staffer Brett Palmer; Eric Solomon, a deputy assistant secretary at Treasury; Kim Reed, assistant to outgoing Treasury Secretary John Snow; and a Treasury technical staff person.
Treasury officials at the meeting did not take a position on any of the issues discussed, but they seemed to show more interest in hearing about insurance issues than they did during a previous meeting over a year ago, Oxendine said.
In the past, a presidential tax reform advisory panel has talked about the use of life insurance as a savings vehicle and suggested taxing some of the gains that build up inside policies.
Treasury officials asked during the June meeting if life insurers were being given a subsidy in the tax code and whether that is something that should continue to be done, Oxendine said.
Oxendine said he told the Treasury officials present that there is no subsidy and the existing treatment should continue.
Oxendine said the NAIC hopes to meet three more times with Treasury after a new Treasury secretary is in place to discuss life, health and property-casualty issues.