Page:United States Statutes at Large Volume 102 Part 4.djvu/483

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PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3453

(1) Section 832 of the 1986 Code (defining insurance company taxable income) is amended by adding at the end thereof the following new subsection: "(g) DIVIDENDS WITHIN GROUP.—In the case of an insurance company subject to tax under section 831(a) filing or required to file a consolidated return under section 1501 with respect to any afHliated group for any taxable year, any determination under this part with respect to any dividend paid by one member of such group to another member of such group shall be made as if such group were not filing a consolidated return." (2) Subclause (H) of section 832(b)(5)(B)(ii) of the 1986 Code (relating to losses incurred) is amended by inserting "(directly or indirectly)" after "attributable". (3) For purposes of section 832(b)(5)(C)(i) of the 1986 Code, any 26 USC 832 note. stock or obligation acquired on or after August 8, 1986, by an insurance company subject to the tax imposed by section 831 of the 1986 Clode (hereinafter in this paragraph referred to as the "acquiring company") from another insurance company so subject (hereinafter in this paragraph referred to as the "transferor company") shall be treated as acquired on the date on which such stock or obligation was acquired by the transferor company if ^ (A) the transferor company acquired such stock or obligation before August 8, 1986, and (B) at all times after the date on which such stock or obligation was acquired by the transferor company and before the date of the acquisition by the acquiring company, the transferor company and the acquiring company were members of the same affiliated group filing a consolidated return. For purposes of the preceding sentence, the date on which the stock or obligation was acquired by the transferor company shall be determined with r^ard to any prior application of the preceding sentence. For purposes of this paragraph, if the acquiring corporation or transferor corporation was a party to a reorganization described in section 368(a)(l)(F) of the 1986 Code, any reference to such corporation shall include a reference to any predecessor thereof involved in such reorganization, (e) AMENDBOINTS RELATED TO SECTION 1023 OP THE REFORM ACT.—

(1) Subparagraph (B) of section 846(f)(6) of the 1986 Code (relating to special rule for certain accident and health insurance lines of business) is amended by striking out "paid during the year" and inserting in lieu thereof "paid in the middle of the year". (2) Subsection (g) of section 846 of the 1986 (Dode is amended by striking out "and" at the end of paragraph (1), by striking out the period at the end of paragraph (2) and inserting in lieu thereof ", and", and by adding at the end thereof the following new paragraph: "(3) r^ulations providing appropriate adjustments in the application of this section to a taxpayer having a taxable year wMch is not the calendar year." (3) Subsection (e) of section 1023 of the Reform Act (relating to 26 USC 846 note. discounting of unpaid losses and certain unpaid expenses) is amended by adding at the end thereof the following new paragraph:

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