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of its accrued liabilities and of its unaccrued reserves for 1991
and 1992:
Reported on Annual Statements 1991 1992
Accrued liabilities
Exhibit 11, CA&H/Medical $2,666,371 $2,494,121
========== ==========
Unaccrued reserves
Exhibit 8, Ordinary & Group-Term Life 1,669,727 2,089,797
Exhibit 9, CA&H/Disability 419,786 442,261
Total unaccrued reserves 2,089,513 2,532,058
========== ==========
Discussion
Since 1921, Congress has enacted separate rules of taxation
for life insurance companies and nonlife insurance companies.
Compare sections 801 through 818 with sections 831 through 835.
Generally, insurance companies qualify as life insurance
companies and are entitled to the related special tax treatment
if more than 50 percent of their total reserves represent life
insurance company reserves as defined in section 816(a). Section
816, in pertinent part below, provides the following description
of the elements of the life insurance company qualifying 50-
percent fraction and of life insurance total reserves.
SEC. 816(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
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Last modified: May 25, 2011