Page:United States Statutes at Large Volume 68A.djvu/295

 CH. 1

NORMAL TAXES AND SURTAXES

255

Subchapter L—Insurance Companies ."^

Part I. Life insurance companies. Part II. Mutual insurance companies (other than life or marine or fire insurance companies issuing perpetual policies). Part III. Other insurance companies. Part IV. Provisions of general application.

PART I—LIFE INSURANCE COMPANIES Sec. Sec. Sec. Sec. Sec. Sec. Sec.

801. 802. 803. 804. 805. 806. 807.

Definition of life insurance company. Imposition of tax. Other definitions and rules. Reserve and other policy liability deduction. 1964 life insurance company taxable income. Adjustment for certain reserves. Foreign life insurance companies.

SEC. 801. DEFINITION OF LIFE INSURANCE COMPANY.

For purposes of this subtitle, the term "Hfe insurance company" means an insurance company which is engaged in the business of issuing life insurance and annuity contracts (either separately or combined with health and accident insurance), or noncancellable contracts of health and accident insurance, if its life insurance reserves (as defined in section 803(b)), plus unearned premiums and unpaid losses on noncancellable life, health, or accident policies not included in life insurance reserves, comprise more than 50 percent of its total reserves. For purposes of this section, the term "total reserves" means life insurance reserves, unearned premiums and unpaid losses not included in life insurance reserves, and all other insurance reserves required by law. A burial or funeral benefit insurance company engaged directly in the manufacture of funeral supplies or the performance of funeral services shall not be taxable under section 802 but shall be taxable under section 821 or section 831. SEC. 802. IMPOSITION OF TAX.

(a) IN GENERAL.—Except as otherwise provided in subsection (b), there shall be imposed for each taxable year on the life insurance company taxable income of every life insurance company a tax consisting of a normal tax and a surtax computed as provided in section 11. For purposes of such tax, the term "life insurance company taxable income" means the taxable income (as defined in section 803 (g)) minus the reserve and other policy liability deduction provided in section 804 and plus the amount of the adjustment for certain reserves provided in section 806. For purposes of the surtax, such taxable income shall be computed without regard to the deduction provided in section 242 for partially tax-exempt interest. (b) TAXABLE Y E A R S BEGINNING IN 1954.—In lieu of the tax imposed by subsection (a) there shall be imposed, for taxable years beginning in 1954, on the 1954 life insurance company taxable income § 802(b)

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