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(...continued)
defined in subsection (c)). For purposes of the
preceding sentence, the term “insurance company” means
any company more than half of the business of which
during the taxable year is the issuing of insurance or
annuity contracts or the reinsuring of risks
underwritten by insurance companies.
(b) Life Insurance Reserves Defined.--
(1) In general.--For purposes of this
part, the term “life insurance reserves”
means amounts--
(A) which are computed or
estimated on the basis of
recognized mortality or morbidity
tables and assumed rates of
interest, and
(B) which are set aside to
mature or liquidate, either by
payment or reinsurance, future
unaccrued claims arising from life
insurance, annuity, and
noncancellable accident and health
insurance contracts (including life
insurance or annuity contracts
combined with noncancellable
accident and health insurance)
involving, at the time with respect
to which the reserve is computed,
life, accident, or health
contingencies.
(2) Reserves must be required by law.--
Except--
(A) in the case of policies
covering life, accident, and health
insurance combined in one policy
issued on the weekly premium
payment plan, continuing for life
and not subject to cancellation,
* * *
* * * * * * *
in addition to the requirements set (continued...)
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Last modified: May 25, 2011