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An insurance company is a life insurance company for Federal
income tax purposes if it meets the definition set forth in
section 816. Section 816 provides in part:
SEC. 816. LIFE INSURANCE COMPANY DEFINED.
(a) Life Insurance Company Defined.--For purposes
of this subtitle, the term “life insurance company”
means an insurance company which is engaged in the
business of issuing life insurance and annuity
contracts (either separately or combined with accident
and health insurance), or noncancellable contracts of
accident and health insurance, if--
(1) its life insurance reserves (as
defined in subsection (b)), plus
(2) unearned premiums, and unpaid losses
(whether or not ascertained), on
noncancellable life, accident or health
policies not included in life insurance
reserves,
comprise more than 50 percent of its total reserves (as
defined in subsection (c)). * * *
(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
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Last modified: May 25, 2011