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Two Rulings Restate Rules Regarding Variable Insurance Contracts  Insurance Update


Author:  F. Roy Sedore.


Source: Volume 20, Number 04, March/April 2007 , pp.45-47(3)




Journal of Taxation and Regulation of Financial Institutions

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Abstract: 

In January 2007, the IRS issued two rulings, one a private letter ruling, the other a Revenue Ruling, regarding the investor control rules applicable to variable insurance contracts. PLR 200701016. The private ruling, PLR 200701016, published January 5, 2007, analyzed the application of the “investor control rules” to group variable annuity contracts sold to various 501(c)(3) organizations. Revenue Ruling 2007-7. Revenue Ruling 2007-7, issued on January 11, 2007, further clarified and amplified Rev. Ruls. 81-225 and 2003-92. Revenue Ruling 2007- 7 concerned a situation in which all assets in the separate account were invested in a regulated investment company (“RIC”).

Keywords: 

Affiliations:  1: Baker & McKenzie LLP.

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