Description: This article is a companion to “They Go Bump in the Night: Life Insurance Policies and the Law of Material Change,” an article written by John T. Adney and Craig R. Springfield (May 2012 Taxing Times Supplement) that describes the various material change rules found in the Code, highlighting the complexities insurers face in navigating through these rules when a life insurance contract is materially changed. The Adney and Springfield article also addresses the difficulties in interpreting the tax law requirements under the various effective date rules contained in the Code sections affecting life insurance contracts.

Description: A brief discussion of the articles included in the February 2013 issue of Taxing Times.

Description: The interaction of section 7702 cash value accumulation test [CVAT] and state nonforfeiture laws [SNFL] create a dual limitation on traditional life insurance contratcs. CVAT limiting the maximum permissible cash value and SNFL requiring a minimum cash surrender value. This article examines these dual limitations.

Description: A discussion of risk and tax risk.

Description: This article discusses risk transfer and how difficult it is to define and describe. For actuaries, the challenge is to develop an analytical framework under which the presence of insurance risk can be identified and assessed.

Description: A discussion of the successes of the Taxation Section, with special emphasis on the increased visibility of tax in the actuarial profession.

Description: A discussion about the Taxation Section goals and accomplishments including meetings, webinar program, volunteering and research activities.

Description: A statement about the article peer-review process for the newsletter, and a disclaimer about interpreting any article content as tax, legal, or other advice.

Description: A diverse variety of topics covering developments in the taxation of life insurance products and companies is highlighted. Two articles in the accompanying May supplement, which relate to the concept of material changes under the tax law, are also mentioned.

Description: The IRS released the details of a program to allow life insurers to correct inadvertent failures to comply with the modified endowment MEC rules under section 7702A of the Internal Revenue Code the “Code”.