Page:United States Statutes at Large Volume 102 Part 4.djvu/539

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3509

(7) Subsection (b) of section 953 of the 1986 Code is amended— (A) by striking out paragraph (1) and redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively, (B) by striking out subparagraph (A) of paragraph (1) (as so redesignated) and inserting in lieu thereof the following: "(A) The small life insurance company deduction.", and (C) by striking out "(other than those taken into account under paragraph (3))" in paragraph (3) (as so redesignated). (8) Subparagraph (B) of section 953(c)(3) of the 1986 Code is amended— (A) by striking out "related person insurance income" and inserting in lieu thereof "related person insurance income (determined on a gross basis)", and (B) by striking out "its insurance income" and inserting in lieu thereof "its insurance income (as so determined)". (9) Subclause (H) of section 953(c)(3)(C)(i) of the 1986 Code is amended— (A) by striking out "all benefits" and inserting in lieu thereof "all benefits (other than with respect to section 884)", and (B) by striking out "under any income tax treaty" and inserting in lieu thereof "granted by the United States under any treaty". (10) Paragraph (7) of section 861(a) of the 1986 Code is amended to read as follows: "(7) Amounts received as underwriting income (as defined in section 832(b)(3)) derived from the issuing (or reinsuring) of any insurance or annuity contract— "(A) in connection with property in, liability arising out of an activity in, or in connection with the lives or health of residents of, the United States, or "(B) in connection with risks not described in subparagraph (A) as a result of any arrangement whereby another corporation receives a substantially equal amount of premiums or other consideration in respect to issuing (or reinsuring) any insurance or annuity contract in connection with property in, liability arising out of activity in, or in connection with the lives or health of residents of, the United States." (11) Subparagraph (A) of section 955(a)(2) of the 1986 Code is amended by striking out "b^;inning before 1987" and inserting in lieu thereof " b ^ i n n i n g before 1987 (to the extent such amount exceeds the sum of the decreases in qualified investments determined under this paragraph for prior taxable years beginning after 1986)". (12) Paragraphs (6) and (7) of section 954(b) of the 1986 Code are each amended Jby striking out "(determined without regard to the exclusion under paragraph (2) of this subsection)". (13XA) Subparagraph (C) of section 1221(g)(3) of the Reform Act is amended— 26 USC 954 note, (i) by striking out "July 9" and inserting in lieu thereof "June 9", and (ii) by striking out "March 31, 1982" and inserting in lieu thereof "November 3, 1981". (B) Subparagraph (D) of section 1221(g)(3) of the Reform Act is amended—

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