Announcement: SOA releases October 2019 Exam STAM passing candidate numbers.

Agenda Day Two

Thursday, September 13
7:00 a.m. – 8:00 a.m.
8:00 a.m. – 9:15 a.m.

Moderator(s): Brian G. King, FSA, MAAA

Presenter(s): Craig R. Springfield, J.D.; John T. Adney, J.D.; Kathryn M. Sneade

This session will explore recent product and policyholder tax matters affecting life insurance contracts and their owners, including:

  • Provisions of the Tax Cut and Jobs Act affecting life insurance product (or policyholder) taxation
  • IRS Notice 2018-41 (reporting requirements for life settlements)
  • IRS Revenue Procedure 2018-20 (Age 100 maturity date requirements under Section 7702 and 7702A for 2017 CSO contracts)
  • Section 7702(c)(3)(B)(i) reasonable mortality implications of the adoption of the 2017 CSO mortality tables

Session Coordinator(s)

Facilitator(s)

9:30 a.m. – 10:45 a.m.

Moderator(s): Bryan W. Keene, J.D.

Presenter(s): Chris Phanco; Eric G. Lanning; John Glover

This session will discuss recent guidance and current issues relating to the federal income tax treatment of annuity contracts and their owners, including non-qualified annuities, individual retirement annuities, and annuities used in qualified plans. Anticipated topics include:

 

  • Provisions of the Tax Cut and Jobs Act affecting annuity product (or policyholder) taxation
  • Hardship distributions from qualified plans
  • The IRS / Treasury Priority Guidance Plan
  • Legislative initiatives regarding annuities in qualified plans
  • Other recent IRS guidance and current issues affecting annuity products

 

Session Coordinator(s)

Facilitator(s)

10:45 a.m. – 12:15 p.m.
12:30 p.m. – 1:30 p.m.

Session Coordinator(s)

Facilitator(s)

Moderator(s): Craig R. Springfield, J.D.

Presenter(s): Lawrence M. Hersh, FSA, MAAA; Samera Kadry; Rebecca Baxter

This session will address tax matters relating to chronic illness and similar accelerated death benefit and other riders to life insurance contracts and the application of Sections 101(g) and 7702B, including:

  • Inflation protection, nonforfeiture, and guaranteed renewability requirements for qualified long-term care insurance riders
  • Benefit triggers, re-certifications, and the per diem limitation
  • Adjustments to sections 7702 and 7702A upon benefit payments
  • State specific issues, including in New York and California

Session Coordinator(s)

Facilitator(s)

Moderator(s): Brian G. King, FSA, MAAA

Presenter(s): Daniela Stoia; Art Dunlavy; Andy Seydel; Kay Hossofsky

This session will address considerations for a life insurance company facing a potential financial liability associated with failed life insurance contracts or inadvertent modified endowments. The session will explore the actuarial, operational, financial reporting, and legal considerations as a company navigates its way through the remediation of non-qualifying life insurance contracts. 

Session Coordinator(s)

Facilitator(s)

1:45 p.m. – 2:45 p.m.

Moderator(s): Sheryl Flum

Presenter(s): Mandana Parsazad; Steve Feldman; Dan Phillips

This session will cover whether changes made to the terms of a life insurance or annuity contract impact the qualifications of the contract for purposes of sections 7702, 7702A and 72. 

Session Coordinator(s)

Facilitator(s)

Moderator(s): John T. Adney, J.D.

Presenter(s): Craig R. Springfield, J.D.; Lawrence M. Hersh, FSA, MAAA

This session will consider insurers’ management of inforce universal life policies that are subject to the section 7702(c) guideline premium test.  The impact of declining and record low interest rates on UL policies that have been in force for many years present a particular challenge for insurers, as policyholders seek to take cash value withdrawals or to reduce death benefits to dampen the prospect of premium increases.  The panel will discuss the effect of such actions under the guideline premium test, the rules for utilizing the premium limit exception of section 7702(f)(6), and related issues of contract administration and policyholder communication.

 

Session Coordinator(s)

Facilitator(s)

2:45 p.m. – 3:00 p.m.
3:00 p.m. – 4:00 p.m.

Moderator(s): Brian G. King, FSA, MAAA

Presenter(s): All available, Rebecca Baxter

Session Coordinator(s)

Facilitator(s)

4:30 p.m. – 5:30 p.m.