Updating of National Service and U.S. Government Life Insurance regulations: Veterans Administration. Final regulations.

The Veterans Administration is amending its regulations relating to insurance matters to (1) permit a Veterans Administration physician's assistant to conduct certain physical examinations that are required for insurance purposes, (2) reflect that the law permits the conversion or exchange of National Service Life Insurance policies to insurance on a modified life plan with reduction at 70, (3) update certain Agency insurance service personnel job titles, and (4) update insurance information pamphlet and policy form references. In addition, certain terms are being changed to eliminate gender reference in those regulations which are being amended. These changes result from a review of the Agency's insurance regulations.

IRS Notice 2002-8 clarifies split-dollar life insurance arrangements.

Healthcare organizations that sponsor split-dollar life insurance arrangements for employees need to understand the tax treatment of such arrangements. IRS Notice 2002-8 clarifies this issue. The notice announces the IRS's intention to publish final regulations regarding the taxation of split-dollar life insurance, outlines the expected provisions to be included in the regulations, provides guidance on the value of economic benefit provided under such arrangements, and issues rules for the taxation of arrangements entered into before the publication of final rules.