PUBLIC LAW 98-369—JULY 18, 1984 "(C) the amount of any endowment benefit (or sum of endowment benefits, including any cash surrender value on the maturity date described in subparagraph (B)) shall be deemed not to exceed the least amount payable as a death benefit at any time under the contract. "(2) LIMITED INCREASES IN DEATH BENEFIT PERMITTED.—Not-
withstanding paragraph (I)(A)— "(A) for purposes of computing the guideline level premium, an increase in the death benefit which is provided in the contract may be taken into account but only to the extent necessary to prevent a decrease in the excess of the death benefit over the cash surrender value of the contract, and "(B) for purposes of the cash value accumulation test, the increase described in subparagraph (A) may be taken into account if the contract will meet such test at all times assuming that the net level reserve (determined as if level annual premiums were paid for the contract over a period not ending before the insured attains age 95) is substituted for the net single premium. "(f) OTHER DEFINITIONS AND SPECIAL RULES,—For purposes of this section— "(1) PREMIUMS PAID.—
"(A) IN GENERAL.—The term 'premiums paid' means the premiums paid under the contract less amounts (other than amounts includible in gross income) to which section 72(e) applies and less any other amounts received with respect to the contract which are specified in regulations. "(B) TREATMENT OF CERTAIN PREMIUMS RETURNED TO POL-
ICYHOLDER.—If, in order to comply with the requirements of subsection (a)(2)(A), any portion of any premium paid during any contract year is returned by the insurance company (with interest) within 60 days after the end of a contract year, the amount so returned (excluding interest) shall be deemed to reduce the sum of the premiums paid under the contract during such year. "(C) INTEREST RETURNED INCLUDIBLE IN GROSS INCOME.—
Notwithstanding the provisions of section 72(e), the amount of any interest returned as provided in subparagraph (B) shall be includible in the gross income of the recipient. "(2) CASH VALUES.— "(A) CASH SURRENDER VALUE.—The
cash surrender value of any contract shall be its cash value determined without regard to any surrender charge, policy loan, or reasonable termination dividends. "(B) NET SURRENDER VALUE.—The net surrender value of any contract shall be determined with regard to surrender charges but without regard to any policy loan. "(3) DEATH BENEFIT.—The term death benefit' means the amount payable by reason of the death of the insured (determined without regard to any qualified additional benefits). "(4) FUTURE BENEFITS.—The term 'future benefits' means death benefits and endowment benefits. "(5) QUALIFIED ADDITIONAL BENEFITS.—
"(A) IN GENERAL.—The term 'qualified additional benefits' means any— "(i) guaranteed insurability,
98 STAT. 769
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