The American Council of Life Insurers, a trade association for the life insurance industry, engaged Milliman to assess the expected actuarial impact of the proposed rule changes on fixed indemnity plans. Proposed rule changes could potentially have severe impacts on the scope of fixed indemnity coverage offered in the market today. On July 7, the Department of the Treasury, Department of Labor, and Department of Health and Human Services posted proposed rule changes to:

• Short-term limited durational insurance
• Hospital or other fixed indemnity coverage
• Specified disease insurance
• Taxation of fixed indemnity benefits

This report was commissioned by the American Council of Life Insurers.