Posts by Bill Hoisington

TAX DEVELOPMENTS Comments Submitted to IRS Regarding Proposed Regulations for Certain Life Insurance Contract Transactions As we reported in the March LRA Update, the IRS released proposed regulations for “Information Reporting for Certain Life Insurance Contract Transactions and Modifications to the Transfer for Valuable Consideration Rules.” The proposed regulations (REG-103083-18) were published in the Federal…

JUDICIAL DEVELOPMENTS COI Litigation Update – John Hancock Settlement Approved On April 4, the United States District Court for the Southern District of New York provided final approval of the class action settlement in 37 Besen Parkway v. John Hancock Life Insurance Company.

TAX DEVELOPMENTS IRS Releases Proposed Regulations on New Reporting Requirements for Certain Life Insurance Contract Transactions On March 22, the IRS released proposed regulations for “Information Reporting for Certain Life Insurance Contract Transactions and Modifications to the Transfer for Valuable Consideration Rules.” The proposed regulations (REG-103083-18) were published in the Federal Register on March 25.

JUDICIAL DEVELOPMENTS Athene vs. American General, et al. – COLI SVP Product Dispute On February 13, the Delaware Court of Chancery held oral arguments regarding ongoing litigation between Athene Life and Annuity Company, et al. (Plaintiffs) and American General Life Insurance Company (AGL), et al. (Defendants).

ACCOUNTING DEVELOPMENTS Whitepaper on BOLI SVP Accounting Implications On January 29, we published a whitepaper, Caveat Emptor: New BOLI SVP Features May Present Undesirable Accounting Implications, addressing potential accounting implications associated with various forms of BOLI stable value protection (SVP).

JUDICIAL DEVELOPMENTS COI Litigation Update – John Hancock Proposed Class Action Settlement As we have reported previously, John Hancock Life Insurance Company (U.S.A.) has agreed to settle class action complaints relating to its Cost of Insurance (COI) charges assessed under numerous life insurance policies. We have confirmed that one of the proposed settlements, 37 Besen…