Next week, Senate Finance Committee Chairman Charles Grassley (R-IA) and Ranking Member Max Baucus (D-MT) will introduce legislation aimed at reducing abuses in certain life insurance contacts involving tax-exempt organizations. The bill will target life insurance contracts that inappropriately afford benefits to private investors that would not otherwise be available without the charity’s involvement. In a May 3 Senate Finance Committee press release, Senator Baucus pledged to work with Senator Grassley, “to make sure that these insurance scams are shut down quickly.” While the Senate Finance Committee has been examining life insurance deals involving charities for some time, the issue was not mentioned in the committee’s June 2004 staff discussion draft.