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13(...continued)
shall be computed on the basis of a ratio the numerator
of which is the excess of the assets over the total
insurance liabilities, and the denominator of which is
the total insurance liabilities.
Sec. 805(a) of the 1954 Internal Revenue Code, as amended,
defined policy and other contract liability requirements as the
sum of:
(1) the adjusted life insurance reserves,
multiplied by the adjusted reserves rate,
(2) the mean of the pension plan reserves at the
beginning and end of the taxable year, multiplied by
the current earnings rate, and
(3) the interest paid.
Sec. 805(b)(2) of the 1954 Internal Revenue Code, as
amended, defined the current earnings rate as:
* * * the amount determined by dividing--
(A) the taxpayer's investment yield for such
taxable year, by
(B) the mean of the taxpayer's assets at the
beginning and end of the taxable year.
Sec. 805(b)(4) defined assets for purposes of the above sec.
805(b)(2) as follows "all assets of the company (including
nonadmitted assets), other than real and personal property
(excluding money) used by it in carrying on an insurance trade or
business."
Sec. 809(a)(2) of the 1954 Internal Revenue Code, as
amended, defined "required interest" for purposes of subsection
819 as:
the sum of the products obtained by multiplying--
(A) each rate of interest required, or
assumed by the taxpayer, in calculating the
reserves described in section 810(c) by
(continued...)
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