Converting Reimbursable Dividends
Article Abstract:
The Tax Equity and Fiscal Responsibility Act (TEFRA) provides that parties in conventional life reinsurance agreements must report dividends paybacks with accrual methodology. Because of the court's holding in Lincoln National, many firms have done it on a cash basis. A recent revenue procedure provides guidelines for a ruling spreading the changes necessary to employ accrual methodology. The new method consent is actuated as of 1982, and involves form 3115. The adjustment amount is equal the reserve for reimbursements payable that the reinsurer had at the end of 1981, with regard to the reserve in the annual statement. Spread period categories are analyzed in detail. The Internal Revenue Service (IRS) has increased its optional mileage rate for cars used in business. These new calculations are detailed. IRS analysis of reserves under annuity options are also analyzed. Certain other interest rate and foreign insurer changes are highlighted.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1984
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Taxes: Looking Ahead
Article Abstract:
When the 1983 Tax Reform Act is finally enacted, the taxation of insurance companies will change. The change in tax liability will be reflected in the pricing of insurance products. The 1983 Act differs from tax legislation of 1959. The differences and similarities are discussed. There are significant changes in deductions. Changes also apply to the financial statement tax charge.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1984
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Captive Insurers: Where Are We Headed?
Article Abstract:
Internal Revenue (IRS) rulings concerning taxation of the insurance industry are discussed. Some rulings point to a no ruling position. Limitations on tax accounting benefits afforded to insurers are mentioned. All the rulings mentioned concern life insurance and benefit plans. The rulings are analyzed and trends are identified.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1984
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- Abstracts: Economic outlook spurs moves to demutualize. Captive insurers gain added "appeal." Taxpayer prevails on captive issue
- Abstracts: Outlook remains good for variable annuities. Canada's life insurers face mounting challenges. This selling season's hit: equity-indexed annuities
- Abstracts: Getting testy about sales screening tests. 1995 ordinary life insurance sales results. Company college program receives high marks
- Abstracts: Expanding the scope of malpractice. Insurers fight back on health care. Debate heats up on privatizing social security disability
- Abstracts: An Intermediary's View of the Reinsurance Market. Captives as a comp cure. Reinsurance at the Crossroads