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noncancelable and certain other types of A&H insurance had
characteristics similar to life insurance and that companies
writing those policies should be allowed to qualify more easily
as life insurance companies. See S. Rept. 1631, 77th Cong., 2d
Sess. (1942), 1942-2 C.B. 504, 611-612. Contrary to respondent’s
arguments, Congress neither amended the reserve ratio intending
to depart from the well-established emphasis on reserves to
determine the nature of an insurance company's business, nor
redefined the reserve ratio by introducing for the first time P&C
insurance terminology into life and A&H products. Congress
merely identified with particularity the reserves that were
required for life and A&H insurance.
Respondent also relies inappropriately on National
Protective Ins. Co. v. Commissioner, 128 F.2d 948 (8th Cir.
1942), affg. 44 B.T.A. 978 (1941), stating that the case is
“eerily similar” to the facts at hand.8 That case has little
8 Respondent also is mistaken by his reliance on the Tax
Equity and Fiscal Responsibility Act of 1982, Pub. L. 97-248, 96
Stat. 324, and the Tax Reform Act of 1984, Pub. L. 98-369, 98
Stat. 494, to infer therefrom the meaning of the term “unpaid
losses”. That term was added to the Internal Revenue Code of
1939 by the Revenue Act of 1942, ch. 619, sec. 163(a), 56 Stat.
798, 867, and those subsequent acts have no bearing on its
meaning. Respondent infers from the later acts that the fact
that Congress did not explicitly state therein that accrued
unpaid losses on CA&H insurance were excluded from “unpaid
losses” means that Congress did not intend to exclude those items
from that term when it was enacted in 1942. Respondent cites
West Va. Univ. Hosps., Inc. v. Casey, 499 U.S. 83, 98 (1991),
(continued...)
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