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

Summary

Counts as life insurance gross income the total of three things. First, all premiums and other payments on insurance and annuity contracts, minus returned premiums and amounts tied to indemnity reinsurance. Second, any net drop in reserves that must be counted under section 807(a). Third, any other amounts that this tax subtitle says must be included in gross income. "Gross amount of premiums and other consideration" means things like advance premiums, deposits, fees, assessments, payments for taking over liabilities on other contracts, and dividend reimbursements from a reinsurer. "Return premiums" usually do not include policyholder dividends, unless the money is returned to another life insurer because of indemnity reinsurance.

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.

§803 Life Insurance Gross Income