Insurance and Financial Products

The design and review of the tax aspects of insurance and financial products is a significant aspect of the Firm’s practice. The Firm has been on the creative forefront in consulting on the many tax law changes affecting the life insurance, annuity and long-term care products sold by life insurance companies in the last two decades. Detailed knowledge of the actuarial concepts that underlie many of the insurance company products is brought to bear in the design and review of the policies to achieve the most favorable tax results. The Firm:

  • Represents many life insurance companies in obtaining favorable IRS waivers and closing agreements in correcting insurer errors made in keeping life insurance contracts qualified under I.R.C. § § 7702 and 7702A (for non-MECs);
  • Represents numerous major life insurance companies in designing life and annuity contracts for both qualified and non-qualified compensation and employee benefit arrangements (including split-dollar, COLI, BOLI, IRA, I.R.C. § 403(b), I.R.C. § 419, and I.R.C. § 457 arrangements) and estate-planning markets. and designs appropriate fail-safe language for such contracts;
  • Reviews annuity products for qualification with I.R.C. § 72, including I.R.C. §  72(s);
  • Advises on the qualification of variable annuity contracts under the diversification and investor control requirements of I.R.C. § 817;
  • Advises extensiely on the various issues relating to structured settlement business, including the application of I.R.C. § 130; and
  • Advises on welfare benefit fund and VEBA arrangements.