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under sec. 845(b), I.R.C., with respect to P. Held,
further: P may amortize each ceding commission over
the life of the underlying agreement.
James E. Brophy III and Mark V. Scheehle, for petitioner.1
Avery Cousins III, Susan E. Seabrook, Lana Eckhardt, and
Nancy S. Vozar, for respondent.
CONTENTS
Findings of Fact
1. General Facts..................................... 6
a. Petitioner................................... 6
b. Notices of Deficiency........................ 7
2. Reinsurance in General............................ 8
a. Overview..................................... 8
b. Experience Refund Provisions.................11
c. Risk Transfer and Risk Charges...............12
d. Termination..................................14
3. The 1988 and 1989 Retrocession Agreements.........15
a. Overview.....................................15
b. Purpose of the Agreements....................19
4. 1988 Agreement....................................21
a. Original Agreement...........................21
b. First Amendment/Trust Account................22
c. Underlying Business..........................24
d. Ceding Commission and Risk Charge............25
e. Right To Withhold............................26
f. Recapture....................................27
g. Termination..................................28
5. 1989 Agreement....................................28
a. In General...................................28
b. Amendments...................................29
c. Underlying Business..........................31
d. Ceding Commission and Risk Charge............31
e. Right To Withhold............................34
1 Brief amicus curiae was filed by John W. Holt and
Susan J. Hotine as counsel for the American Council of Life
Insurance.
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