Page:United States Statutes at Large Volume 76.djvu/1039

 76 STAT. ]

PUBLIC LAW 8 7 - 8 3 4 - O C T. 16, 1962

991

"(ii) there is any amount in the protection against loss account at the beginning of the taxable year. " (d) ELECTION To INCLUDE STATUTORY UNDERWRITING INCOME OR

Loss.— "(1) IN GENERAL.—Any mutual insurance company which is subject to the tax imposed by subsection (c) may elect, in such manner and at such time as the Secretary or his delegate may by regulations prescribe, to be subject to the tax imposed by subsection (a). "(2) EFFECT OF ELECTION.—If an election is made under paragraph (1), the electing company shall be subject to the tax imposed by subsection (a) (and shall not be subject to the tax imposed by subsection (c)) for the first taxable year for which such election is made and for all taxable years thereafter unless the Secretary or his delegate consents to a revocation of such election. "(e) No UNiTTiD STATES INSURANCE BUSINESS.—Foreign mutual insurance companies (other than a life insurance company and other than a fire, flood, or marine insurance company subject to the tax imposed by section 831) not carrying on an insurance business within Post, PP.997, the United States shall not be subject to this part but shall be taxable ^'8as other foreign corporations. "(f) SPECIAL TRANSITIONAL UNDERWRITING Loss.— "(1) COMPANIES TO WHICH SUBSECTION APPLIES.—This subsection shall apply to every mutual insurance company which has been subject to the tax imposed by this section (as in effect before the enactment of this subsection) for the 5 taxable years immediately preceding January 1, 1962, and has incurred an underwriting loss for each of such 5 taxable years. " (2) REDUCTION OF STATUTORY UNDERWRITING INCOME.—For

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purposes of this part, the statutory underwriting income of a company described in paragraph (1) for the taxable year shall be the statutory underwriting income for the taxable year (determined without regard to this subsection) reduced by the amount by which— " (A) the sum of the underwriting losses of such company for the 5 taxable years immediately preceding January 1, 1962, exceeds " (B) the total amount by which the company's statutory underwriting income was reduced by reason of this subsection for prior taxable years. "(3)

UNDERWRlftNG LOSS DEFINED.

F o P purpOSeS o f t l l i s Sub-

section, the term 'under.writing loss' means statutory underwriting loss, computed without any deduction under section 824(a) and without any deduction under section 832(c) (11). "^(4) YEARS TO WHICH SUBSECTION APPLIES.—This subsection shall apply with respect to any taxable year beginning after December 31, 1962, and before January 1, 1968, for which the taxpayer is subject to the tax imposed by subsection (a).

Post, p. 993. Post, p. 997.

" (g) CROSS REFERENCES.—

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"(1) For exemption from tax of certain mutual insurance companies, see section 501(c) (15). 26 USC 501; "(2) For alternative tax in case of capital gains, see section Post, p. \997. 1201(a).''

26 USC 1201; Post, p. 999.

(b) TAXABLE INVESTMENT INCOME.—

(1) IN GENERAL.—Section 822 (relating to determination of 26 USC 822; mutual insurance company taxable income) is amended by strik- ^°®'' P-992.

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