Disabled Girl Also Could Lose if Insurer Does : Annuities: The IRS wants Executive Life to pay $643 million in back taxes. It the agency wins, the 9-year-old’s monthly checks may stop coming.

A couple receiving monthly insurance checks for their 9-year-old quadriplegic daughter said Wednesday that the quality of her life may be jeopardized if the Internal Revenue Service forces a $643-million back-tax payment from Executive Life Insurance Co. of California and causes the company to cancel policy payments.

Moore held a press conference Wednesday in the back yard of the three-bedroom Cypress home she shares with her husband, Alan, and their three children.

The couple receive about $3,700 a month from Executive Life Insurance Co. for their disabled daughter, Sara. The payments, which the company has made for 6 1/2 years, were guaranteed for life, the Moores said. The child was left in a quadriplegic state after suffering brain damage during a complicated delivery, and the annuity was awarded in a court settlement with a Los Angeles County hospital.

“I didn’t want to win money from the settlement because I didn’t want to take a chance on investments,” said Alan Moore, who is a parking attendant supervisor at Cal State Long Beach. “I wanted (Sara) to be financially stable for the rest of her life.”

However, panic has set in for the couple since news reports disclosed that the IRS is seeking $643 million in back taxes from Executive Life, which was seized by state insurance regulators two weeks ago.

Executive Life insures about 300,000 people, but the tax agency’s move to collect unpaid taxes could jeopardize life insurance and annuity payments to thousands of these customers, said Phil Proffit, executive director of the National Coalition of IRS Whistleblowers, based in Los Angeles.

The Moores’ annuity has allowed Julie--formerly a dental assistant--to stay home the past two years and provide personal care for Sara. Most of the monthly stipend goes to provide weekly in-home physical and occupational therapy sessions and equipment for the child, such as special chairs for home and school.

Caring for a disabled child is extremely expensive, the Moores said, and would be nearly impossible without the annuity checks because Alan Moore makes less than $40,000 a year.