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The Irish government plans to split insurance operations from the unprofitable bank unit.
These steps could help split insurance markets into two ― one with relatively cheap, skimpy short-term plans that would be available to people who are in good health, and one with highly expensive comprehensive insurance that would be available to anybody, regardless of pre-existing conditions.
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Splitting insurance companies is "not a brand new idea," said Francine L. Semaya, an insurance lawyer at the firm Cozen O'Connor.
MBIA jumped 8.82 percent, to $10.36, after JPMorgan Chase and Barclays said they are withdrawing from a lawsuit over the company's decision to split its insurance unit in two.
The suit, brought by the Bank of America, JPMorgan Chase, UBS and 15 more of the world's largest financial companies, challenges MBIA's move a year ago to split its insurance business into two companies after it sustained record losses in the mortgage market and lost its top credit rating.
The remainder is split between insurance companies and honest victims, with the great bulk of the victim money going to those least badly hurt.
Another 20% is in the commercial mortgage-backed securities (CMBS) market and the remainder is split between insurance companies and agencies of Fannie Mae, Freddie Mac and the Federal Housing Administration.
The rest will be split between insurance companies and individual residents of Glendora and Azusa. .
But the IRS' attack on split-dollar insurance came months after key congressmen had moved to block the ploy.
Among those selling the split-dollar insurance now under attack by the IRS were planners from American Express, which has a network of 10,000 advisers.
True, the taxmen made headlines with a June crackdown on charitable "split-dollar insurance," a smelly scheme in which tax-deductible "donations" were used to buy insurance to benefit the donor's family.
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