Page:United States Statutes at Large Volume 98 Part 1.djvu/811

 PUBLIC LAW 98-369—JULY 18, 1984 December 31, 1983, a company has, as authorized by the law of the State in which the company is domiciled, been operating as a mutual life insurance company with shareholders, such company shall be treated as a stock life insurance company. (f) TREATMENT OF CERTAIN ASSESSMENT LIFE INSURANCE COMPANIES.— (1) MoRTAUTY AND MORBIDITY TABLES.—In the case of a contract issued by an assessment life insurance company, the mortality and morbidity tables used in computing statutory reserves for such contract shall be used for purposes of paragraph (2)(C) of section 807(d) of the Internal Revenue Code of 1954 (as amended by this subtitle) if such tables were— (A) in use since 1965, and (B) developed on the basis of the experience of assessment life insurance companies in the State in which such assessment life insurance company is domiciled.

98 STAT. 763

26 USC 807 note.

Ante, p. 726.

(2) TREATMENT OF CERTAIN MUTUAL ASSESSMENT LIFE INSURANCE COMPANIES.—In the case of any contract issued by a

mutual assessment life insurance company which— (A) has been in existence since 1965, and (B) operates under chapter 13 or 14 of the Texas Insurance Code, for purposes of part I of subchapter L of chapter 1 of the Internal Revenue Code of 1954, the amount of the life insurance reserves for such contract shall be equal to the amount taken into account with respect to such contract in determining statutory reserves. (3) STATUTORY RESERVES.—For purposes of this subsection, the term "statutory reserves" has the meaning given to such term by section 809(b)(4)(B) of such Code. (g)

TREATMENT OF REINSURANCE AGREEMENTS REQUIRED BY

Ante, p. 720.

Ante, p. 733. 26 USC 801 note.

NAIC.—Effective for taxable years beginning after December 31, 1981, and before January 1, 1984, subsections (c)(l)(F) and (d)(12) of section 809 of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of this Act) shall not apply to dividends to policyholders reimbursed to the taxpayer by a reinsurer in respect of accident and health policies reinsured under a reinsurance agreement entered into before June 30, 1955, pursuant to the direction of the National Association of Insurance Commissioners and approved by the State insurance commissioner of the taxpayer's State of domicile. For purposes of subchapter L of chapter 1 of such Code (as in effect on the day before the date of the enactment of this Act) any such dividends shall be treated as dividends of the reinsurer and not the taxpayer. (h) DETERMINATION OF ASSETS OF CONTROLLED GROUP FOR PUR- 26 USC 806 note. POSES OF SMALL LIFE INSURANCE COMPANY DEDUCTION FOR 1984.— (1) IN GENERAL.—For purposes of applying paragraph (2) of section 806(d) of the Internal Revenue Code of 1954 (relating to Ante, p. 724. nonlife insurance members included for asset test) for the first taxable year beginning after December 31, 1983, the members of the controlled group referred to in such paragraph shall be treated as including only those members of such group which are described in paragraph (2) of this subsection if— (A) an election under section 1504(c)(2) of such Code is not in effect for the controlled group for such taxable year, (B) during such taxable year, the controlled group does not include a member which is taxable under part I of

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