Page:United States Statutes at Large Volume 98 Part 1.djvu/769

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 721

"(c) TAXATION OF DISTRIBUTIONS FROM PRE-1984 POLICYHOLDERS SURPLUS ACCOUNT.—

'^

"For provision taxing distributions to shareholders from pre-1984 policyholders surplus account, see section 815.

"Subpart B—Life Insurance Gross Income

Post, p. 747.

...

"Sec. 803. Life insurance gross income. "SEC. 803. LIFE INSURANCE GROSS INCOME.

26 USC 803.

"(a) IN GENERAL.—For purposes of this part, the term 'life insurance gross income' means the sum of the following amounts: "(1) PREMIUMS.—

-3

"(A) The gross amount of premiums and other consideration on insurance and annuity contracts, less "(B) return premiums, and premiums and other consideration arising out of indemnity reinsurance. "(2) DECREASES IN CERTAIN RESERVES.—Each net decrease in reserves which is required by section 807(a) to be taken into Post, p. 726. account under this paragraph.

-'^

"(3) OTHER AMOUNTS.—All amounts not includible

'

under

paragraph (1) or (2) which under this subtitle are includible in gross income. "(b) SPECIAL RULES FOR PREMIUMS.— "(1) CERTAIN ITEMS INCLUDED.—For

purposes of subsection (a)(1)(A), the term 'gross amount of premiums and other consideration' includes— "(A) advance premiums, "(B) deposits, "(C) fees, "(D) assessments, • "(E) consideration in respect of assuming liabilities under j_ contracts not issued by the taxpayer, and O It f <<^p) Yie amount of policyholder dividends reimbursable to the taxpayer by a reinsurer in respect of reinsured '^ policies, on insurance and annuity contracts. "(2) POLICYHOLDER DIVIDENDS EXCLUDED FROM RETURN PREMI-

UMS.—For purposes of subsection (a)(1)(B)— "(A) IN GENERAL.—Except as provided in subparagraph (B), the term 'return premiums'does not include any policy' holder dividends.

"'

"(B) EXCEPTION FOR INDEMNITY REINSURANCE.—Subpara-

' *

graph (A) shall not apply to amounts of premiums or other consideration returned to another life insurance company in respect of indemnity reinsurance.

"Subpart C—Life Insurance Deductions "Sec. "Sec. "Sec. "Sec. "Sec. "Sec.

' '

804. Life insurance deductions. 805. General deductions. 806. Special deductions. 807. Rules for certain reserves. 808. Policyholder dividends deduction. 809. Reduction in certain deductions of mutual life insurance compa, nies. "Sec. 810. Operations loss deduction.

31-194 0 - 8 6

25: QL. 3 Part 1

�