Chicago Tribune from Chicago, Illinois • 39

Chicago Tfibune. Tuesday, October 30, 1934 Sect on 11 Treasury securities Monday, October 29. 1984 AUeal etna VW I BneMK Dale tax planning Ht'eMar Dae 106 luo 4 .1 00 18 75 94141 75 Oct 1984 9 at Hot lfe4 14 38 fcuf 1S4 00 l0 a 9t a AS1 91 I 9' "4 1 9. 9 99 25 I 1 2 3 ia Aua i a 1 09) Ira 12 25 59 a 11 S3 Oct I96 a 6 13 No 194 11 13 11 88 12 Jt 13 :5 9 38 Dec 1V94 Asm Crajt 95 14 ti 22 9i 14 98 14 9e 24 A 10j ll 104 .1 9. I 94 14 4 it: i .1 111 15111 J1 107 29 58 1 4 1126 I i 14 A lr: si if.i r.j.

14 00 Dec Aut 11 tvi 1VS4 IKS II 63 A. ft 9 75 Jul fx 6 27 8 31 8 72 181 9 79 9 28 9)7 926 986 966 1: 67 ..111 75 117l ,4 I A 99 31 10. 10C1 I. 8 ISC 12 .1 99 301 2 lot 21 I 25 99 26 99 30 99 13 9t 19 .1 99 27 99.31 101 10101.14 99 24 99 28 .1 101 10191.14 .1 fic ae i i I 25 iVjr 99 3 7 it ti it a-1. 49 9 Aaaf CM 161 If 29 .1 IX 28 IX 30 15' 19 iffl 22 3 10C '1 0C 2t- 91 0 92 99 19 99 2J .1 104 18 1G4 22 .1 ICat 19 2 .1 97 19 23 4 9i 8 9i 12 .1 96 JI 99 3 102 17102 21 .1 97.14 97.18 .1 ioi.il let 15 102.4 1028 1057 105 11 97.22 97 5 4 It 9 II 11 5 30 11 91 25 75 17 7- 10 ii no It 9 J7 II JUi II 32 10 75 Aut 11 2S 11 SO 0:1 II 27 13 JO Nor 10 40 II '5 Jan 11 16 12 Apr II 24 14 SO Mar 11 23 li 75 11 21 14 98 Aut 11.35 12 25 Ocl 11.33 14 25 Nor 11.40 14 63 Feb 11.43 13 75 Mar 1132: 4 25 Aut 1145 2 25 Aut 11 10 50 Nor 11.47' 4 30 Feb 11.52 8 75 Feb 11.54) 7 81 Feb 1147 10 88 Feb 10 99 10 13 Mar 11 5aV 7 SO Aut 11 SS 163 Aut 11-581 11 at A.

9 i-'-o a l9a 191 a I99i a 1991 a li a 1991 a 1991 1991 a 1991 a 1992 1992 1972 a 1999 93 Wi 193 1991 a 1993 a 19HS91 1993 9t 14 97 144- I7 I )k 11.91 5 99 II 'Si 11 69 9t 19 97 19 1 90 99 23 27 .1 10 16 7 63 t-ee 7 98 Nor I 38 4 47 I 75 9 I 9 13 6 10 31 Nor II 75 Feb 1C 00 Mar 12 7S 13 81 iVar 14 j0 10 38 Nor 12 A ut 13 23 Mar 12 SO Aua 1181 1 1 11.84-" I 1 at 8 9 99t 9 7 6:. 4 I- '3 106 Ti 16! 31 25 IH 1 116 28117 4 8 00 ftb lvi5 a 943 Feb IMS a 14 63 Fe-o 1S 8 9 53 rYr iws a UX Mo tv 9.50 Ah IH15 a 375 Wjr I9S5 4 75 rV-ar 197S-8S 9 88 Mar ms a 10 38 Mar 195 a 14 13 Mar 1985 a 14. Mar 1935 a 14 00 Jua 1985 a 1C 00 Jua Ivns a 10 63 Jul 1V-S a 25 Aua Ins a 9 63 Aue 191:5 a 10 63 Aua lVfcS a 4 2 0 f. 1 ii 8 1 II 2-. 11 i 7 11 1 III 5.: .1 9 95 101 31 102 10 06 102 2 102 8 1 10 12 101.30 II 29 10S.I 88 12 88-20 it 11 77 16 Ul .4 105-5 4 99.5 -J- .1 91 16 102 .1 105-5 13 81 fcor Iva4 a 16 13 09 19-4 a 10 30 Dec 196 a 9 30 Feb IW a 10 88 Feb 19(7 a 12 75 Feb 17 a 10 25 Mar 1987 a 11 30 Mar 1987 a 12 50 Mar 1987 a 14 30 Mar 1937 a 10 50 Jua 197 a 12 18 Au8 1987 a 75 Aut 1987 a 1113 Sep 19S7 a 7.63 Tror 1987 a 12.63 Nor 1957 a 1125 Dec mil 12 Jan 1998 a 10 13 Feb 19-4 a 12 00 Mar 19:8 a 13 25 Apr I9r8 a 25 Mar I9-U3 a 9 81 Mar 198 a 12 63 Jua lv-8 a 14 30 Jul 1998 a 10 50 Aua 1948 a 15 38 Ocl 1998 a 11 72) 11 Svl lUi 5 10 9 .1 99 21 9 24 .1 99.

1 91 101.7 It', lit In 3 it 79 1 11 91 t. 9-14 111 16 100 2 100 6 10 36 102 It 102 12 20 20 11 56 2009-149 10- 11 10. 18 8 1 1 'I 'i tb- ys 14 ye is 99 11 09 lt 9 99 3 99 101 31 lff S. ci ien cse N6n 10 34 11 9S1 11.96) 1993 a 99 10 Su. 9 I 11.63 163 Nsr 1941 11 83 a is a ttotain9 Itret.

a Treasury wry note and no U.S. urn tam, lit vilMwidint Uxet. -BIHt 99 30 100 2 10 54 101 28102.3 3 10 43 100.6 100.10 A 10 51 104 19104.23-.1 10 35 II 9J lj Au teas Up 15 88 Sea ID 50 CXI OSS a IVS5 At VaJ Dor Ask VK it 0 VV 28 100 99 3 99 7 .1 99 99 36 4 10 16119 24 A I'i 24H3 10 22 1W 30 ti 12 89.12 4 79 I i 24 93 4 17 2a 88 71 4 7S 14 4 79.14 79 30 4 94 It 94 24 A 90 14 90 23 .1 77 11 77 27 4 82.14 12 22 A 99 11 99 17 .1 t2 9 82 17 4 98 24 98 30 83 29 84 5 .1 88 I 89 I 4 106 10 1 06 14 i 82 6 82 14 4 10 3 27 1 03 31 .1 90 10 90 18 A 88 1 89 2 Ji 92.4 92 12 .4 91.7 91 15 A 104 14 104 22 .1 98 8 98 16 69 11 69 27 17.30 88 30 .4 77.8 77 22- 72 2 72 10 7) 8 75 16 98 22 98 10 108 25109 I 72 16 73 110 10110 II 121 126 8 11. f( II. 19 10 50 10 56 10 69 10 55 21 942 9 18 9 7 it II 93 II 75 I- I 101.1 101.5 9 35 917 9 41 I 79 I 71 IS5 I IS I 77 I 92 9 04 8 98 9 1 4 33 II- I II 15 II 23 9 42 9 14 9 77 44 I Jt 9 II 44 I 31 9 13 1 45 9 31 9 98 47 9 41 9 92 rSJ 9.47 18 01 55 9 49 10 35 11 i 2 28 3- 7 1-14 121 3 21 4 4 4.11 1 00.

1 100.5 A 103 13103.17 .4 99 22 99 26 99 77 100.31 A 10; 79 1(11 9 10 73 10.83 1079 10 90 10.95 11 29 8 9) 1 87 9 0 12. I 98 I 90 9 1 0 100 30 101-2 A 104 12104 20 A 90 18 90 26 A 94 21 95 4 105 18 105 20 106 20106 28 96.14 96.20 J) lit 111.14 99.5 99 7 A 91 911- 1004 1001 1094 1012 .2 98 .24 99 108 22 108 91.23 91.31 3 99 27 99 31 A 109.8 109.14 .4 1074 107.8 3 100 12 100 20 .1 96.7 96.15 103 16 103 18 A 94 27 95.3 .1 887 (9 7 .1 94.19 94.27 86 21 17.5 11.61 11 75 Nor 1993 a S' 9 00 Feb 1994 1148 4 11 Ur 198994 11.59 13 11 Mar 1994 1170 8 75 Aut 1994 11 66 12 63 Aug 1994 1160 1013 Nor 1994 11 68 3 30 Feb 1995 1163 10 SO Feb 1995 11 52 10 II Mar 1995 11 67 1 2 63 Mar 1995 11. 7 II. SO Nor 1995 11 61 7 00 Mat 1993 91 11.74 3 50 Nor 198 11-57 ISO Mar 1994-99 1176 2 81 Feb 1995 00 83 1 38 Aut 199S-00 I 85 11.75 Feb 2WI 1171 1313 Mar 2001 117! 1(70 Aut 196-01 11.79 13 31 Aut 2001 II 79 15 75 Nor 2U01 5 901 4.3j eeo 2002 11 11 63 Nor 2002 11-44. 10.7S Feb 2003 11 61 11.84 II 75 II 43 4.51 11.73 11 83 12 II 12 20 12 27 ay in tii I 97 I 99 9 11 1.97 1.89 9.14 Nor ia5 a 10 50 Nor I9S5 a 1175 Nor Kiss a ion Dec imi 14 13 Dec 1995 a 10 63 Jaa Wit a 10 38 Feb 19 a 13 50 Feb 1996 a Feb 19m a 14 00 Mar 1986 a 11.50 Mar a 1175 Apr 1986 a Id Mar 1996 9 a Mar 1996 a 12 63 Mar 1984 a 1375 Mar 1966 a 13 00 Jun 1996 14 81 Jun 1986 a 12.63 Jul 1986 t.OO Aua 1986 a 11.38 Aut 1986 a 4- 18 TO y.S 'U 19 425 9 55 9-5 n0 II 5- 1 57 9 53 1 0 413 1S6.9S210.17 1965- 11 Jt Sea 1V.8 a 8 75 Nor 1998 a 11 75 Nor 1998 a 14.63 Jan 1989 a 1138 Feb 1999 a 14 38 Apr 1989 a 9.25 May 1999 a 1175 Mar 1989 a 14 50 Jul 1999 a 13 88 Aut 1999 a 11.88 Ocl 1989 a 10 75 Nor 1999 a 12.75 Nor 1989 a 10.50 Jan 1990 a 3 50 Feb 1990 basically in a holding pat-vr( until we see what the interpre-, 'ui wiil be," the spokesman said.

Mi Provident, officials are making ''minor modifications" to some polities. Williams said. Washington National is changing its data-processing system to monitor action in each policy, See said. "If a policyholder lets his policy drop too low in the insurance part or he pays too much premium or whatever might make the policy not meet the federal requirements, we are changing our data processing so we can detect that and notify the' policyholder." IN ILLINOIS, most of the action so far has been with amendments, said Charles Budinger, supervising insurance analyst with the state Department of Insurance. But the state has no way of knowing how many companies may be pulling some policies off the market.

"That's hard to say because they don't have to notify us if thev stop selling a product," he said. ''What we are seeing is that there are more riders coming in than complete revamps of a policy. Thev can get approval on a rider a lot faster than on a whole policy." While complying with the new definition may mean administrative headaches for companies, executives say they have little quarrel with the definition itself. Washington National's See added, "This definition of life insurance is pretty reasonable, and the ordinary-life policy meets this test. The only one that does not meet this test would be one that is very highly investment oriented." Laughlin of United of Omaha said.

Y'We don't feel that in our markets we really suffered by the restrictions at all. The consumer is -going to end up with a product that has a little more life insurance than our last product had." 96 20 98.24- A 10 94 103 26104.30- 10 92 100 18 100 22 .1 10.96 100 26 100.30- 1074 95 19 95 23 10 97 97 16 97 20- J) 11.09 101.29 102.1 A 11.19 103 17103 21- A 11.10 102.16102 20 .1 11.23 105.10 105.14 .1 11.21 101.30 102.2 11.30 7-11 rt iu I- 3 I 10 1-17 1-24 1 11 7 9 02 19 124 9 15 9 09 1 18 I II 9.13 1.44 9 29 9 25 9 59 9 34 9 30 9 6 9 3 9 32 9 70 9.40 34 9.74 9 64 9 se li 9-8S 9.64 0 36 10. 9 64 9 60 10.44 10-11 144 9.60 I0.S1 11.84 II 90 II 87 11.71 II 91 11 85 II 84 11 88 2-14 That means the law's real impact is on the insurance companies, which have to make all their new policies conform with the new guidelines by Jan. 1. The law itself came as no surprise, said D.E.

Laughlin, executive vice president and director of marketing for United of Omaha, the life insurance subsidiary of Mutual of Omaha. "Everybody was anticipating there would be this legislation, so I think everybody had it in their product development plans to set aside the resources to make those changes," he said. "We had plenty of warning, so really nobody should have been caught snort on it." BUT WHILE the new definition of life insurance brought few surprises, it has created some administrative problems. At United of Omaha, for example, two policies alone account for about 60 percent of all contracts written and both have to be changed to reflect the new restrictions, Laughlin said. Evanston-based Washington INa-tional Insurance Co.

is simply scrapping about 10 little-sold products as not worth the hassle of changing, said Gary See, vice president and actuary. The company's biggest seller, a universal life policy, is being amended, he said. "CNA said two of its policies, one a universal life and the other a traditional whole life, are being amended. But a company spokesman said some parts of trie new law are unclear, and CNA is waiting to see what kind of specific regulations the Internal Revenue Service issues. SutXrct lo tatMral taiet bat ran tt tlatt 95.4 3 11.07 100.0 100.10-1 .1 u.n' in Apr 1990 a 8,25 Mar 1990 Income la set.

1 US 11.90 Standard Poor's yield averages Public authority bonds Government finances' COMMON STOCKS IO00.O00 omllledl Ask 79 This Last week week Exclusive Midwest stocks Final pricaa sales Ms High Low Last Clio. Bomark 10 147 a 14'fl 147a FslMich .381 1 109 10V4 10'4 GrellBr .32 4 20 191 I9W- A PipeuaH 1 I5'4 1 5 i 15'. rlrVlcke 31315-14 Vt Vt- Vtj 10 moat actlva 49 "1 3.99 Tolal public deM Ocl. 25, 1904 11,600.064 12,341 Last rear 3.97 2 64 1.62 4.06 3.27 8 90 5.07 4.62 121 192 5.01 4.54 61 92 153,638 174,200 175.342 Interest on public debt Sea. interest rise! year thru Sea.

Prolected deficit llscal '14 Actual budoet dettcll '84 Receipts tiscal rear thro Sep. 5. 4 31 01 668,457 10.901 BIO 75 45! 51 68'i 58 90 57'7 76 97 60 7 35 97 65'1 79 82 11.57 11.58 BONDS Issue, rate, maturlir Bl SI Dev A9C9 -'91 Chao Cal Strwy 319 -'95 lliatj Do, 4t lllall Ches. Bar Bfdg 8 Ton 54-'00 Choo Ret Ports 4-'95 III. State Toll Hwr 34 -IS Do, 41 '98 Do, 66 -'10 tnd.

Toll Rd. 31 --94 Kansas Tpke 119-l-'94 Kentucky Tpke 475-'04 LlvomaAAIch.lDR Ifltt) Mackinac Bridge 5'i-'94 Oklahoma Tpke 4.70-'O6 Va St Tptt 3H 13 rat Do, 49b -12 t'89 Source: William Blair Co. rlilon, Chkago. 79 101 65 400 Industrial! 20 transport 40 utilities 40 financial 500 composite Preferred stock AAA Industrlirt AA Industrials Uliimes Comaosiit I Industrials Ulilllies Composltt 11.77 12.22 11.14 Receipts same period year ago 000, 562-Outlays fiscal rear thru Sep. 841,830 Outlays same period year ago r95.9l Gold assets thru July .11,099 The toremment't flKal rear runt Oct.

I through Sept. 30. ReyMdlnd 504,800 Ms- Soulnern Co 269,900 'M Elhyl 235,300 29H2' PopeTtlbt .1 202,400 16. Teiaco Inc 153.100 14rt Noeasl Ulll 152,700 I3S 98 101 12.12 12 62 12 2 12 80 tl'i 12.121 12.441 12.28 87 17 Momeiltlte 107,900 25' i Burlral Ind 104,800 9t 92 4.1 124J 1291 12 46 13.16 12.72 Sen Food 101,900 55' MoMI 100,700 1099 'I 12.571 13.00 132 1371 13.04 1370 Silver and gold, SILVER-Chicaoo-MrdAmerlce tror ounces Noyember, S7.1 per troy ounce: December, January, '85, February, April, December, nerloul rolume, 45 contract. GOLD Chlcaoo-MldAmerlct Iroy' ounces December, $337.60 per tror ounce; April.

'85. $349,001 orevloui trolume. 147 cnn Bond averages 20 10 10 1 rails Ind. bills. 10 ton.

0.3 unch. Industrlalt Ulililies Composite Government (taxable) Long term Intermediate term Short term Municipal Ittg London stocks I London Financial Times! Net Close chge. Industriths 878.2 5.0 13.51 13.26 11.58 11.41 10.691 9.79 1 iter enra. u.l v.i Monday 58.1 80.6 1984 high 58.7 81.9 1984 low 5J7 77.7 Cash value Continued from 1st Business page aimed specifically at a relatively new kind of insurance, called "universal life," "adjustable life" or "'flexible life," in which part of the premium buys a term life insurance policy and the balance is invested to accumulate a cash value. In 1384, Congress entirely rewrote the law on taxation of the insurance industry.

Because it is a highly regulated industry and its profits come from long-term investments, not collection of premiums, insurance companies always have had a different tax treatment, noted Paul Anglin, a tax partner at Deloitte Haskins Sells. The recent tax law was an effort to streamline the tax process, he added, although insurance accountants and executives say it's too early to determine whether the new law really will be simpler. As part of that effort, the definition of "life insurance" was further restricted and made applicable to all life insurance products, not just universal life. Policies that don't meet the new definition will be considered investments, and the cash-value build-up will be taxed currently to the policyholder, even if the policy is not cashed in. TO FALL within the new definition, all policies must meet one of two tests.

Both tests include actuarial assumptions, such as interest and mortality rates, and one also includes an acceptable "corridor," or ratio of cash build-up to death benefit, based on the age of the policyholder. As the policyholder gets older, a greater percentage of the policy may go to cash value. Under the old law, a universal life policy with a cash value of $60,000 had to have a face value, or death benefit, of at least $84,000. Under i the 1984 law, a policy with a $60,000 -cash value must have a death benefit of at least $150,000, according to the American Council of Life Insurance. "It is impossible for a layman to use the tests, and if you have any questions about a policy, you should get a representation from the insurance company that the tests have been met," said Steven Gardiner, a manager at Arthur Andersen Co.

in Milwaukee who specializes in taxation of the insurance industry. Frederick Williams, vice president of advanced sales for Chattanooga, Tenn. -based Provident Life and Accident Insurance said having a choice of two tests rather than a single guideline actually broadens, rather than restricts, the definition of "life insurance." BUT REGARDLESS of which test is used, an insurance policy is allowed to build up less of a cash value per premium dollar under the new law, he added. "It would have more of an impact on the younger consumer," he said. "The new corridor versus the old corridor would produce less cash value over a long period of time.

To a person who buys a policy at, say, age 30, you would say it has been detrimental because you would have less cash value at age 65." "As a practical matter, my experience was that very few people were trying to load their policies up" with cash values, Gardiner said. "This law just says that if you want to, you can't." Anglin of Deloitte Haskins Sells said the stricter definition 'was "a broad reaction on the part of the government. I think they thought the abuses were broad based." He added that the new definition only affects policies written after this year, and that policies issued earlier will be allowed to stand. 11 59 1209 11.70 12.27 11.13 1168 10.13 10.35 97 993 949 Fn, nr ffr A I I I A6SC 09 i I i 4M995 W. I I i 3, 5 and 7 ye.ar fixed-rate contracts.

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Not only you greater freedom in assembling your own feature package, your com-p-any may be one of the many that'll benefit from new reduced rates. In addition, Illinois Bell is now offering Suburban businesses call: 1 800 533-0100 Continued from 1st Business page House. Lugar said the Reagan adminis-. tration's top concern will beuecor-notnic growth on the assumption that that would lead to a reduction in the federal deficit. Lugar ruled out higher taxes next year, but said the door is open to tax restructuring and reform.

"There's a need for tax simplification," he said. "Probably one or-another flat-tax proposal will be considered." Paul W. Prior, league chairman, repeated his call for action by Con- ress and the administration to re-uce the deficit and hence interest rates. "We dare not sacrifice economic growth, no matter how encouraging we find the recent decline in interest rates, a decline that was in-, Bpired by slower economic said Prior, chairman and president of Henry County Savings Loan Association of New Castle, Ind. SEPARATELY, a panel of economists predicted a slower rate of growth of the nation's economy coupled with declining unemployment but rising interest rates during the next two years.

Lacy H. Hunt, executive vice" president and chief economist for Asset Management Co. Inc. of Philadelphia, said the nation's" gross national product would grow at a 4.7 percent annual rate in the fourth quarter. The GNP, however, will taper off to 3.1 percent by the end of next year and to 1.6 percent in the third quarter of 1986, Lacy said.

Unemployment will drop from 7.4 percent in the third quarter to a low of 6.2 percent by the second quarter of 1986, Hunt said. However, the prime lending rate will rise from today's 12.2 percent to a peak of 13.64 percent in the second period of 1986, he said. Rates on 30-year, fixed-rate gages will go 13.93 percent today to 15.6 perudnt this time next year and to 16.2 percent in the third quarter of 1986. Cbrnmunication Wthout Complication. C-Illinois Bed.

1984 AN JemEuMiZxii COMPANY .1 4l 9V fru-V 43V49" 9.jVJ.