98 STAT. 748
PUBLIC LAW 98-369—JULY 18, 1984 "(1) IN GENERAL.—Each stock life insurance company which has an existing policyholders surplus account shall continue such account. "(2) No ADDITIONS TO ACCOUNT.—No amount shall be added to the policyholders surplus account for any taxable year beginning after December 31, 1983. "(3) SUBTRACTIONS FROM ACCOUNT.—There shall be subtracted from the policyholders surplus account for any taxable year an amount equal to the sum oJF— "(A) the amount which (without regard to subparagraph (B)) is treated under this section as distributed out of the policyholders surplus account, and "(B) the amount by which the tax imposed for the taxable year by section 801 is increeised by reason of this section.
Ante, p. 720.
"(e) EXISTING POLICYHOLDERS SURPLUS ACCOUNT.—For purposes of
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this section, the term 'existing policyholders surplus account means any policyholders surplus account which has a balance as of the close of December 31, 1983. "(f) OTHER RULES APPLICABLE TO POLICYHOLDERS SURPLUS ACCOUNT CONTINUED.—Except to the extent inconsistent with the pro-
Ante, p. 747.
visions of this part, the provisions of subsections (d), (e), (f), and (g) of section 815 (and of sections 6501(c)(6), 6501(k), 6511(d)(6), 6601(d)(3), and 6611(fK4)) as in effect before the enactment of the Tax Reform Act of 1984 are hereby made applicable in respect of any policyholders surplus account for which there was a balance as of December 31, 1983. ...„ sni
26 USC 816.
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"Sec. 816. Life insurance company defined. "Sec. 817. Treatment of variable contracts. "Sec. 818. Other definitions and special rules.
"SEC. 816. LIFE INSURANCE COMPANY DEFINED.
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"Subpart E—Dennitions and Special Rules
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"(a) LIFE INSURANCE COMPANY DEFINED.—For purposes of this subtitle, the term 'life insurance company' means an insurance company which is engaged in the business of issuing life insurance and annuity contracts (either separately or combined with accident and health insurance), or noncancellable contracts of health and accident insurance, if^ "(1) its life insurance reserves (as defined in subsection (b)), plus "(2) unearned premiums, and unpaid losses (whether or not ascertained), on noncancellable life, accident, or health policies not included in life insurance reserves, comprise more than 50 percent of its total reserves (as defined in subsection (c)). For purposes of the preceding sentence, the term 'insurance company means any company more than half of the business of which during the taxable year is the issuing of insurance or annuity contracts or the reinsuring of risks underwritten by insurance companies. "(b) LIFE INSURANCE RESERVES DEFINED.—
"(1) IN GENERAL.—For purposes of this part, the term 'life insurance reserves' means amounts— "(A) which are computed or estimated on the basis of recognized mortality or morbidity tables and assumed rates of interest, and
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