May 7th, 2021
New West Short
Section 7702  - Carrier Updates

Quick overview: on December 27th, 2020, The Consolidated Appropriations Act, signed into law changes to the tax code reducing the minimum interest rate assumptions insurance companies may use affecting the definition of insurance: 
  • The Guideline Premium Test and the Cash Value Accumulation Test under Internal Revenue Code (IRC) Section 7702 and;
  • Modified Endowment Contracts under IRC Section 7702A
These changes will allow products to accept larger premium amounts and to accumulate more cash value while maintaining a lower death benefit. 
From our Carriers  
We will continue to bring you carrier updates as they progress.  

Melissa Church
Director of Marketing
208-622-5211 x 2
melissa@newwestinsurance.com
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