Cos. granted waivers for life policy noncompliance.(life insurance companies)

National Underwriter Life & Health-Financial Services Edition, August, 1996 by Chandler, Darlene

Life insurance companies that could not comply with Section 7702 of the Internal Revenue Code (IRS) requiring life insurance policies to meet one of two alternative tests may be granted waivers by the IRS. Many life insurance companies offering universal life have found that the data systems needed to efficiently administer such flexible policies do pose some daunting problems. Companies must satisfy IRS requirements before the waivers are granted.

When universal life first emerged as a major player on the life insurance field the product's flexibility was portrayed as one of its major advantages. However, as many life insurance companies have now realized, the data systems required to administer such flexible policies can be, to say the least, challenging....

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