Does anyone know how are split-dollar insurance plans for tax-exempts treated? Do the 457(f) rules control?

The Sarbanes-Oxley Act of 2002 [Public Law 107-204], which became law on July 30, 2002, banned company loans to executives. Many have therefore been concerned that the premiums on split dollar policies could be considered interest-free loans to the extent the corporation is eventually reimbursed for them. The uncertainty over the policies virtually halted their sale in 2002, and has even created uncertainty as to whether premiums can continue to be paid on existing contracts. [“Insurance Plans of Top Executives Are in Jeopardy,”New York Times, Aug 29, 2002, Business section]

To the extent that split-dollar insurance even remains possible, regulations issued on September 17, 2003 [TD 9092] and Rev. Rul. 2003-105, 2003-40 I.R.B. 696, tax the value of such arrangements under either an economic benefit or a loan theory, depending on whether the employee or the employer is the owner of the policy.