insurance and financial products


The design and review of the tax aspects of insurance and financial products is a significant aspect of our practice. We have 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 three 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. We:

  • Represent 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);

  • Represent 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 design appropriate fail-safe language for all tax-qualified insurance contracts;
  • Review annuity products for qualification with I.R.C. § 72, including I.R.C. §  72(s);
  • Advise on the qualification of variable annuity contracts under the diversification and investor control requirements of I.R.C. § 817;
  • Advise on the qualification and use of long-term care contracts;
  • Advise extensively on the various issues relating to structured settlement business, including the application of I.R.C. § 130; 
  • Advise on issues arising from contract modifications and exchanges of life insurance, annuity, long-term care and other insurance contracts;
  • Advise on policy restructurings for insurers in insolvency proceedings; and
  • Advise on welfare benefit fund and VEBA arrangements.