LexisNexis® Legal Newsroom
Redundant Fees Destroy Retirement Assets – What the Insurance Companies Do Not Want You to Know

The problem? More than 80% of 403(b) retirement assets are invested in tax sheltered annuities. On the surface this sounds like a good thing, but hiding just underneath the surface is a very profitable, and little talked about, secret that is costing investors billions of dollars, $3.3 billion to be...

Combination Long-term Care Products

A recent Financial Planning Magazine article discusses new tax laws that may increase the popularity of combining life insurance and annuities with long-term care insurance. Long-term care ("LTC") insurance sales have been in a decline over the past several years. Many believe that...

New Appleman Insurance Law and Practice Guide, 34.07 Consider the Influence of Federal Regulation

One of the 45 chapters in the new edition of the New Appleman Insurance Law Practice Guide is "Understanding Life Insurance" by Richard J. Cohen and Daniel W. Gerber of Goldberg Segalla LLP. Section 34.07 of that chapter considers the influence of federal regulation on insurance. It is...

New York Seeks Comments On Discretionary Clause Draft

By Allison Bell, SENIOR EDITOR/WEB EDITOR, National Underwriter Life & Health. Empire State regulators have posted a version of a proposed regulation that would prohibit annuity issuers and life and health insurers in the state from using contracts that include discretionary clauses. The New...

Structured Settlements 101

By William B. Fazio, Settlement Consultant, Fazio National A Structured Settlement is an arrangement that is designed to compensate a claimant over time, rather than with a single lump sum cash payment. Over the past several decades structured settlements have been codified in US tax law...

TOP CASE: Federal Appeals Court Vacates Proposed Rule Calling for SEC Regulation of Fixed Index Annuities

By Sherilyn Pastor, Partner and Practice Group Leader, McCarter & English, LLP On July 12, 2010, the United States Court of Appeals for the District of Columbia in Am. Equity Inv. Life Ins. Co. v. SEC, 2010 U.S. App. LEXIS 14249 (D.C. Cir. July 12, 2010) struck a blow to the Securities and...

IIPRC Product Standards

By Cande Olsen, Vice President, Actuarial Resources Corporation of Georgia Introduction This article will explain how the Interstate Insurance Product Regulation Commission (IIPRC or the Commission) product standards development process works, and will then give some important highlights...

5 Simple Keys To Making An Interstate Insurance Compact Filing

By: Sean Cox, First Consulting & Administration, Inc. Have you been thinking about using the Interstate Insurance Compact to file your Life or Annuity product? Are you curious what is involved in making the actual filing? The following article will describe some tips for successfully submitting...

Western Reserve Life Ass. Co. of Ohio v. Conreal: First Stranger Initiated Annuity Transaction Decision

By Stephan Leimberg and Howard Zaritsky The STAT is an intriguing use of annuities to avoid risk of loss in aggressive investments. It is available only because some annuity issuers attempt to tempt older annuitants by offering a full return of their premiums if the annuitant dies prematurely. It...

IRS Rules Again on Annuity Issues in Defined Contribution Plans

By Mark Smith and Jamey A. Medlin In PLR 201048044 (September 9, 2010), the Internal Revenue Service again addressed the application of certain tax rules relating to distributions from defined contribution retirement plans in the form of an annuity. Facts The ruling considered a proposed target date...

LexisNexis® Insurance Law Community Podcast featuring Susan Voss, President of the National Association of Insurance Commissioners

On this edition, LexisNexis Insurance Law Community Manager Karen Yotis talks with Susan E. Voss, Commissioner of the Iowa Insurance Division and President of the NAIC, discusses the recent commissioners conference, health care reform issues, financial services oversight, the relationship with the new...

Sutherland Legal Alert: IRS Rules that Annuity Payouts with Automatic Increases Are Not “Substantially Equal Periodic Payments”

By W. Mark Smith and Joanna G. Myers In PLR 201120011 (Feb. 11, 2011), the Internal Revenue Service (Service) ruled that nonqualified annuity payouts that automatically increase by a fixed percentage are not within the "substantially equal periodic payment" (SEPP) exception to the IRC §...

Unpaid Insurance Benefits Issues Continue to Intensify

By Phil Stano, Partner, Sutherland Asbill & Brennan LLP Attention to unclaimed property issues affecting life insurance companies – including issues relating to unpaid life insurance and annuity benefits – has significantly escalated in recent weeks, due to regulatory actions, media...

Sutherland Legal Alert: IRS Issues Interim Guidance on the Federal Income Tax Treatment of Annuity and Life Insurance Contracts with a Long-Term Care Insurance Feature

By Thomas Gick , William Walderman , William Pauls , and Mark Smith On August 11, 2011, the Internal Revenue Service (the IRS) released interim guidance - Notice 2011-68 (the Notice) - addressing the application of certain changes to the federal income tax rules governing qualified long-term care (QLTC...

Beware of "Veterans Annuities"

There's never a shortage of "financial advisors" willing to fleece seniors. That's heinous enough. What gets my blood boiling even faster is when veterans and their surviving spouses are targeted. Our veterans protected us, and now they need our protection. And since the best...

Sutherland Legal Alert: Two Classes of Annuity Providers Do Not Violate § 403(b) Universal Availability Requirement

By Mark Smith and Vanessa Scott In Private Letter Ruling 201142033 (July 25, 2011), the Internal Revenue Service (IRS) ruled that the IRC § 403(b) universal availability requirement was not violated merely because (i) a university system made available two classes of annuity providers and (ii)...

Options For Clients Who Offer Retirement Benefits For Domestic Employees, From Morrison & Foerster

By Wendy M. Greenberg, Esq. , Morrison & Foerster LLP We have previously discussed in this space the possible tax traps related to clients' gifts and bequests to their employees. This article continues in that vein to provide some practical options specifically for clients who would like...

After Targeting the Terminally Ill and the Elderly, Estate Planning CEO and Employee Head to Prison

He saw “death as a holiday.” He targeted the terminally ill and the elderly. He stole millions of dollars. Federal prosecutors say that Joseph A. Caramadre, the president, chief executive officer, and majority owner of Estate Planning Resources in Cranston, R.I., did all this – and...