Central Reserve Life Corporation and Subsidiaries - Page 11




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          Cir. 1993).  In the case at hand, however, the text of section              
          816 is found in subchapter L of the Code.  Congress drafted                 
          subchapter L and its predecessors using the specialized language            
          of the insurance industry, and Congress understood that language            
          to have the technical meaning given to it by that industry.  See            
          Helvering v. Independent Life Ins. Co., 292 U.S. 371, 379 (1934);           
          Alinco Life Ins. Co. v. United States, 178 Ct. Cl. 813, 373 F.2d            
          336, 352 (1967); see also United States v. American Trucking                
          Associations, Inc., 310 U.S. 534, 543-544 (1940).  It is only               
          appropriate, therefore, to construe the subject text in the light           
          of its usage in the insurance industry, to the extent that it has           
          an established meaning in that industry.  See Atlantic Mut. Ins.            
          Co. v. Commissioner, 523 U.S. 382 (1998); Hedden v. Richard, 149            
          U.S. 346, 348-349 (1893); South Jersey Sand Co. v. Commissioner,            
          30 T.C. 360, 368 (1958), affd. 267 F.2d 591 (3d Cir. 1959).  The            
          meaning of the words in the insurance industry may be gleaned               
          from their use in the annual statement which contains,                      
          references, and incorporates many of the industry’s terms of art.           
          The annual statement is instructive in understanding the peculiar           
          meaning of those words, which, in turn, may make it most helpful            
          in construing the provisions of subchapter L.  See Commissioner             
          v. Standard Life & Accident Ins. Co., 433 U.S. 148, 157-163                 
          (1977); Harco Holdings, Inc. v. United States, supra at 1033.               







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