§803 — Title 26 Internal Revenue Code | U.S. Code

§803 Life insurance gross income

Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter L— - Insurance Companies › Part PART I— - LIFE INSURANCE COMPANIES › Subpart Subpart B— - Life Insurance Gross Income › § 803

Last updated Apr 6, 2026|Official source

Summary

Counts a life insurance company’s gross income as three things: (1) all premiums and other money from insurance and annuity contracts, minus return premiums and amounts returned because of indemnity reinsurance; (2) net decreases in reserves that section 807(a) requires to be counted; and (3) any other amounts the tax code says are gross income. “Premiums and other money” includes advance premiums, deposits, fees, assessments, payments for taking on other firms’ contract liabilities, and policyholder dividends a reinsurer must reimburse. Policyholder dividends usually are not treated as return premiums, except when amounts are returned to another life insurer for indemnity reinsurance; then they count as return premiums.

Title 26, §803

Internal Revenue Code — Source: USLM XML via OLRC

(a)For purposes of this part, the term “life insurance gross income” means the sum of the following amounts:

(1)(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)Each net decrease in reserves which is required by section 807(a) to be taken into account under this paragraph.

(3)All amounts not includible under paragraph (1) or (2) which under this subtitle are includible in gross income.

(b)(1)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 contracts not issued by the taxpayer, and

(F)the amount of policyholder dividends reimbursable to the taxpayer by a reinsurer in respect of reinsured policies,

(2)For purposes of subsection (a)(1)(B)—

(A)Except as provided in subparagraph (B), the term “return premiums” does not include any policyholder dividends.

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

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 803, acts Aug. 16, 1954, ch. 736, 68A Stat. 256; Mar. 13, 1956, ch. 83, § 2, 70 Stat. 39, related to income and deductions in the case of life insurance companies, prior to the general revision of this part by Pub. L. 86–69, § 2(a), June 25, 1959, 73 Stat. 112.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98–369, set out as a note under section 801 of this title.