House Passes Repeal of Estate Tax National Underwriter (Life and Health Financial Services Edition) (06/23/03) p.66; Brostoff, Steven
Association for Advanced Life Underwriting Director Tom Korb says that the 264-163 House vote to approve a permanent repeal of the estate tax was not a surprise, but the Senate is not expected to pass the legislation. Korb notes that even a permanent repeal of the tax might not prove reliable for insurance clients, and says that the situation is tending toward reform. Rep. Earl Pomeroy (D-N.D.) proposed an alternative--increasing the current exemption to $3 million for individuals and $6 million for couples, and freezing the top rate at 49 percent--but the idea did not pass. Separately, the life insurance industry is altering its Lifetime Annuity Payout proposal to attract certain income groups, the House Financial Services Committee is conducting hearings on the reauthorization of the Fair Credit Reporting Act (FCRA), and ACLI is telling Congress to reauthorize the act because it lets insurers obtain consumer information that makes life insurance easier to get and less expensive. ACLI Senior Counsel Roberta Meyers says that the FCRA lets insurers share data that helps determine a consumer's eligibility and premium, and protects confidentiality of medical data.