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Article: Life Settlement Institute Supports Efforts to Curb Abuses of Insurable Interest Laws; Efforts to Protect Primary and Secondary Market for Life Insurance Benefit American Consumers.
- Article from:
- Business Wire
- Article date:
- June 1, 2005
CopyrightCOPYRIGHT 2005 Business Wire. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON -- The Life Settlement Institute (LSI), the leading organization representing secondary market providers for life insurance, applauds recent federal and state legislative efforts aimed at stopping investor-initiated life insurance schemes that would misuse tax-exempt organizations for their own profit. With a retroactive effective date of May 3, 2005, the recent legislation announced by Senate Finance Chairman Charles Grassley and Senator Max Baucus, ranking member, further demonstrates that these abuses will not be tolerated.
The Grassley/Baucus legislation would impose a 100 percent excise tax on the acquisition costs of any "applicable insurance ...