because we will not be in the IOLI
business, in the life settlement business, irrational pricing with respect to older age underwriting, we have seen a hit there.
The National Association of Insurance Commissioners has also crafted an update to its viatical model law to address IOLI
issues, and as with employer-owned life insurance, Brody said the new NAIC model is somewhat of an "overreaction" that could cause unintended problems.
Bill Archer echoed Cadin's view that abusive practices in the IOLI
market could spur Congress to overreact by curtailing the preferred tax treatment accorded to life insurance.
Here, and in a prior column ("It's Time to Ban IOLI
," June 20, 2005) Mr.
They have IOLI
policies that are starting to mature," she says, "and their funders are starting to back away.
It is helping to perpetuate IOLI
by not addressing the trust issue," he says.
The session's two other panelists--David Goldman, a vice president of the Life Finance Group at Credit Suisse Securities; and Alan Buerger, CEO of Coventry First and Coventry Capital--did not dispute the contention that the nascent IOLI
market is rife with abuses.
We hope to work with the Treasury Department and the congressional tax writers to come up with an effective answer to the IOLI
But whether the LTC provision is included and the IOLI
provision excluded remains "an open question until the deal is sealed and delivered," as one lobbyist noted.
The life industry's concern is that so-called "trailer tax cut legislation" the Republican congressional leadership is committed to passing may include the IOLI
provision as a revenue raiser.
The concern about IOLI
does not end with the tax reconciliation deal, however," the tax lobbyist said.
provision of concern in the Senate bill deals with the involvement of charities in arrangements where unrelated third parties take out interests in life insurance policies.