Wesley C. and Rhonda A. Wickum - Page 15

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          of TAMRA makes clear that Congress’ purpose in exempting such               
          church plans from the “applicable law” requirement was to ensure            
          that they were treated as life insurance contracts “even if the             
          arrangements do not constitute life insurance under applicable              
          State law.”  H. Conf. Rept. 100-1104 (Vol. II), at 169 (1988),              
          1988-3 C.B. 473, 659.                                                       
               Since petitioner’s insurance activities took place in North            
          Dakota, the applicable law for determining whether the products             
          he sold were life insurance contracts is the law of North Dakota.           
          Petitioners argue that what petitioner sold was life insurance              
          because every policy he sold or supervised the sale of contained            
          a death benefit if death occurred as a result of an accident                
          covered by the policy.  In sum, petitioners' argument is that               
          accident policies that contain death benefits constitute life               



               5(...continued)                                                        
                    individuals covered under such plan or                            
                    arrangement, and                                                  
                         (B) such plan or arrangement is provided by a                
                    church for the benefit of its employees and their                 
                    beneficiaries, directly or through an organization                
                    described in section 414(e)(3)(A) or an                           
                    organization described in section                                 
                    414(e)(3)(B)(ii).                                                 
                    (3) Definitions.--For purposes of this subsection                 
               --                                                                     
                         (A) Church.--The term “church” means a church                
                    or a convention or association of churches.                       
                         (B) Employee.--The term “employee” includes                  
                    an employee described in section 414(e)(3)(B).                    




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