Page:United States Statutes at Large Volume 98 Part 1.djvu/806

 98 STAT. 758

PUBLIC LAW 98-369—JULY 18, 1984 contract with respect to such party as terminated on December 31 of each year and reinstated on January 1 of the next year)." (b) CLERICAL AMENDMENT.—The table of sections for such part IV is amended by adding at the end thereof the following new item: "Sec. 845. Certain reinsurance agreements."

PART II—EFFECTIVE DATE; TRANSITIONAL RULES Subpart A—Effective Date 26 USC 801 note. SEC. 215. EFFECTIVE DATE.

The amendments made by this subtitle shall apply to taxable years beginning after December 31, 1983. Subpart B—Transitional Rules 26 USC 801 note.

SEC. 216. RESERVES COMPUTED ON NEW BASIS; FRESH START. (a) RECOMPUTATION OF RESERVES.—

26 USC 801. Ante, p. 748.

Ante, p. 726.

(1) IN GENERAL.—As of the beginning of the first taxable year beginning after December 31, 1983, for purposes of subchapter L of the Internal Revenue Code of 1954 (other than section 816 thereof), the reserve for any contract shall be recomputed as if the amendments made by this subtitle had applied to such contract when it was issued. (2) PREMIUMS EARNED.—For the first taxable year beginning after December 31, 1983, in determining "premiums earned on insurance contracts during the taxable year" as provided in section 832(b)(4) of the Internal Revenue Code of 1954, life insurance reserves which are included in unearned premiums on outstanding business at the end of the preceding taxable year shall be determined as provided in section 807 of the Internal Revenue Code of 1954, as amended by this subtitle, as though section 807 was applicable to such reserves in such preceding taxable year. (3) ISSUANCE DATE FOR GROUP CONTRACTS.—For purposes of

this subsection, the issuance date of any group contract shall be determined under section 807(e)(2) of the Internal Revenue Code of 1954 (as added by this subtitle), except that if such issuance date cannot be determined, the issuance date shall be determined on the basis prescribed by the Secretary of the Treasury or his delegate for purposes of this subsection. (b) FRESH START.—

26 USC 1 et seq.

(1) IN GENERAL.—Except as provided in paragraph (2), in the case of any insurance company, any change in the method of accounting (and any change in the method of computing reserves) between such company's first taxable year beginning after December 31, 1983, and the preceding taxable year which is required solely by the amendments made by this subtitle shall be treated as not being a change in the method of accounting (or change in the method of computing reserves) for purposes of the Internal Revenue Code of 1954. (2) TREATMENT OF ADJUSTMENTS FROM YEARS BEFORE 1984.— (A) ADJUSTMENTS ATTRIBUTABLE TO DECREASES IN RE-

SERVES.—No adjustment under section 810(d) of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of this Act) attributable to any

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