The new, combined version of H.R. 1, the Tax Cuts and Jobs Act bill, could cost life insurers about $22 billion over the period from 2018 through 2027.
Rep. Kevin Brady, R-Texas, originally proposed a version of the tax bill that would raise about $22 billion, by combining a $7 billion change in the tax rules for life insurers' deferred acquisition cost (DAC) expenses, or spending on activities such as marketing, underwriting, and paying agents' and brokers' commissions, with a $14.9 billion change in life insurers' reserving rules.
Over in the Senate, Sen. Orrin Hatch, R-Utah, proposed generating about $23 billion in revenue by simply changing the DAC rules.
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Allison Bell
Allison Bell, a senior reporter at ThinkAdvisor and BenefitsPRO, previously was an associate editor at National Underwriter Life & Health. She has a bachelor's degree in economics from Washington University in St. Louis and a master's degree in journalism from the Medill School of Journalism at Northwestern University. She can be reached through X at @Think_Allison.
