N000711
Sunday, December 23, 2001 3:51 PM
VICTIMS COMPENSATION FUND
In reading the provisions of the Victins Compensation Fund, I find that Life
Insurance on the insured may be considered a Collateral Source which would
offset compensation. I noticed that comments were made regarding the fact
that premiums may have been paid by the victims for such insurance, and the
fairness to include such benefits in the offset process. Certain Life
Insurance policies include Cash Values, which reduce the risk portion of the
coverage. Since other assets are not being considered as Collateral Sources,
it seems unfair to include the Cash Value of such Life Insurance policies.
Another question would be the ownership of the Life Insurance. It is quite
common for a policy to be purchased by a person other than the insured, and
such Life Insurance would not be considered as part of the insured's estate
for tax purposes. Would such Life Insurance be excluded from the Collateral
Sources, as well?.
While I understand the objective of the Fund, I am concerned about certain
details which may not have been arranged with the complications mentioned
above. I hope these can be explored as soon as possible, and I will
appreciate your comments.
Sincerely,
Individual Comment