Page:United States Statutes at Large Volume 96 Part 1.djvu/592

 96 STAT. 550

PUBLIC LAW 97-248—SEPT. 3, 1982 most recent mortality table allowed under all State laws on the date of issuance), "(ii) interest shall be based on the greater of— "(I) an annual effective rate of 4 percent (3 percent for contracts issued before July 1, 1983), or "(ID the minimum rate or rates guaranteed upon issue of the contract, and "(iii) the computational rules of paragraph (2)(D) shall apply, except that the maturity date referred to in clause (ii) thereof shall not be earlier than age 95. "(H) CORRECTION OF ERRORS.—If the taxpayer establishes

26 USC 101.

26 USC 101 note.

to the satisfaction of the Secretary that— "(i) the requirements described in paragraph (1) for any contract year was not satisfied due to reasonable error, and "(ii) reasonable steps are being taken to remedy the error, the Secretary may waive the failure to satisfy such requirements. "(I) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection. ' (b) CONFORMING AMENDMENT.—Paragraph (1) of section 101(a) (relating to proceeds of life insurance contracts payable by reason of death) is amended by striking out "and in subsection (d)" and inserting in lieu thereof ", subsection (d), and subsection (f)". (c) EFFECTIVE D A T E S. —

(1) IN GENERAL.—The amendments made by this section shall apply to contracts entered into before January 1, 1984. (2) SPECIAL RULE FOR CONTRACTS ENTERED INTO BEFORE JANU-

Ante, p. 547.

ARY 1, 1983.—Any contract entered into before January 1, 1983, which meets the requirements of section 101(f) of the Internal Revenue Code of 1954 on the date which is 1 year after the date of the enactment of this Act shall be treated as meeting the requirements of such section for any period before the date on which such contract meets such requirements. Any death benefits paid under a flexible premium life insurance contract (within the meaning of section 101(f)(3)(A) of such Code) before the date which is 1 year after such date of enactment shall be excluded from gross income. (3) SPECIAL RULE FOR CERTAIN CONTRACTS.—Any contract

entered into before January 1, 1983, shall be treated as meeting the requirements of subparagraph (A) of section 101(f)(1) of such Code if such contract would meet such requirements if section 103(0(2)(C) of such Code were applied by substituting "3 percent" for "4 percent". SEC. 267. REDUCTION IN APPROXIMATE REVALUATION METHOD OF COMPUTING RESERVES.

(a) REDUCTION FROM $21 PER $1,000 TO $19 PER $1,000 IN DETERMINING APPROXIMATE REVALUATION OF CERTAIN RESERVES COMPUTED ON PRELIMINARY TERM BASIS.—

26 USC 818.

(1) IN GENERAL.—Subparagraph (A) of section 818(c)(2) (relating to approximate revaluation of reserves computed on preliminary term basis) is amended— (A) by striking out "$21" and inserting in lieu thereof "$19", and

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