26 USC 818 - Other definitions and special rules

Editorial Notes

References in Text

Section 165 of the Internal Revenue Code of 1939, referred to in subsec. (a)(1), (2), was classified to section 165 of former Title 26, Internal Revenue Code. Section 101 of the Internal Revenue Code of 1939, referred to in subsec. (a)(4) was classified to section 101 of former Title 26, Internal Revenue Code. Sections 101 and 165 were repealed by section 7851(a)(1)(A) of this title. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of this title. See, also, section 7851(e) of this title for provision that references in the 1986 Code to a provision of the 1939 Code, not then applicable, shall be deemed a reference to the corresponding provision of the 1986 Code, which is then applicable.

Prior Provisions

A prior section 818, added Puspan. L. 86–69, § 2(a), June 25, 1959, 73 Stat. 133; amended Puspan. L. 88–272, title II, § 228(span)(1), Fespan. 26, 1964, 78 Stat. 98; Puspan. L. 91–688, § 1(a), Jan. 12, 1971, 84 Stat. 2072; Puspan. L. 94–455, title XIX, §§ 1901(a)(101), 1906(span)(13)(A), Oct. 4, 1976, 90 Stat. 1781, 1834; Puspan. L. 97–248, title II, §§ 258(a), 260(a), 262, 267(a), Sept. 3, 1982, 96 Stat. 538–540, 550, related to accounting provisions generally, prior to the general revision of this part by Puspan. L. 98–369, § 211(a).

Another prior section 818, act Aug. 16, 1954, ch. 736, § 818, as added Mar. 13, 1956, ch. 83, § 2, 70 Stat. 46, related to certain new insurance companies, prior to the general revision of this part by Puspan. L. 86–69, § 2(a).

A prior section 819, added Puspan. L. 86–69, § 2(a), June 25, 1959, 73 Stat. 136; amended Puspan. L. 89–809, title I, § 104(i)(3), Nov. 13, 1966, 80 Stat. 1561; Puspan. L. 94–455, title XIX, §§ 1901(a)(102), 1906(span)(13)(A), Oct. 4, 1976, 90 Stat. 1781, 1834, related to foreign life insurance companies, prior to the general revision of this part by Puspan. L. 98–369, § 211(a). See section 813 of this title.

A prior section 819A, added Puspan. L. 94–455, title X, § 1043(a), Oct. 4, 1976, 90 Stat. 1639, related to contiguous country branches of domestic life insurance companies, prior to the general revision of this part by Puspan. L. 98–369, § 211(a). See section 814 of this title.

A prior section 820, added Puspan. L. 86–69, § 2(a), June 25, 1959, 73 Stat. 137; amended Puspan. L. 94–455, title XIX, §§ 1901(a)(103), 1906(span)(13)(A), Oct. 4, 1976, 90 Stat. 1782, 1834, related to optional treatment of policies reinsured under modified coinsurance contracts, prior to repeal by Puspan. L. 97–248, title II, § 255(a), (c), Sept. 3, 1982, 96 Stat. 533, 534, applicable to taxable years beginning after Dec. 31, 1981, with exception.

A prior section 821, acts Aug. 16, 1954, ch. 736, 68A Stat. 260; Mar. 30, 1955, ch. 18, § 2, 69 Stat. 14; Mar. 13, 1956, ch. 83, § 3(a)(1), (2), 70 Stat. 47; Mar. 29, 1956, ch. 115, § 2, 70 Stat. 66; Mar. 29, 1957, Puspan. L. 85–12, § 2, 71 Stat. 9; June 30, 1958, Puspan. L. 85–475, § 2, 72 Stat. 259; June 30, 1959, Puspan. L. 86–75, § 2, 73 Stat. 157; June 30, 1960, Puspan. L. 86–564, title II, § 201, 74 Stat. 290; June 30, 1961, Puspan. L. 87–72, § 2, 75 Stat. 193; June 28, 1962, Puspan. L. 87–508, § 2, 76 Stat. 114; Oct. 16, 1962, Puspan. L. 87–834, § 8(a), 76 Stat. 989; June 29, 1963 Puspan. L. 88–52, § 2, 77 Stat. 72; Fespan. 26, 1964, Puspan. L. 88–272, title I, § 123(a), 78 Stat. 29; Nov. 13, 1966, Puspan. L. 89–809, title I, § 104(i)(4), 80 Stat. 1562; Oct. 4, 1976, Puspan. L. 94–455, title IX, § 901(span), title XV, § 1507(span)(1), title XIX, §§ 1901(a)(104), 1906(span)(13)(A), 90 Stat. 1607, 1739, 1782, 1834; May 23, 1977, Puspan. L. 95–30, title II, § 201(3), (4), 91 Stat. 141; Nov. 6, 1978, Puspan. L. 95–600, title III, § 301(span)(9), 92 Stat. 2821; Aug. 13, 1981, Puspan. L. 97–34, title II, § 231(span)(1), (2), 95 Stat. 249, related to tax on mutual insurance companies to which former part II applied, prior to repeal by Puspan. L. 99–514, title X, § 1024(a)(1), Oct. 22, 1986, 100 Stat. 2405, effective for taxable years beginning after Dec. 31, 1986.

A prior section 822 was renumbered section 834 of this title by Puspan. L. 99–514, title X, § 1024(a)(3), Oct. 22, 1986, 100 Stat. 2405.

A prior section 823, added Puspan. L. 87–834, § 8(c), Oct. 16, 1962, 76 Stat. 992; amended Puspan. L. 91–172, title IX, § 907(c)(2)(B), Dec. 30, 1969, 83 Stat. 717, related to determination of statutory underwriting income or loss, prior to repeal by Puspan. L. 99–514, title X, § 1024(a)(1), Oct. 22, 1986, 100 Stat. 2405, effective for taxable years beginning after Dec. 31, 1986.

Another prior section 823, act Aug. 16, 1954, ch. 736, 68A Stat. 263, which defined “net premiums” and “dividends to policyholders”, was redesignated section 822(f) of this title by section 8(span)(4) of Puspan. L. 87–834.

A prior section 824, added Puspan. L. 87–834, § 8(c), Oct. 16, 1962, 76 Stat. 993; amended Puspan. L. 94–455, title XIX, § 1906(span)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to adjustments to provide protection against losses, prior to repeal by Puspan. L. 99–514, title X, § 1024(a)(1), Oct. 22, 1986, 100 Stat. 2405, effective for taxable years beginning after Dec. 31, 1986.

A prior section 825, added Puspan. L. 87–834, § 8(c), Oct. 16, 1962, 76 Stat. 995; amended Puspan. L. 91–172 title IX, § 907(c)(2)(C), (D), Dec. 30, 1969, 83 Stat. 717; Puspan. L. 94–455, title VIII, § 806(d)(2), title XIX, § 1901(a)(106), Oct. 4, 1976, 90 Stat. 1599, 1782; Puspan. L. 97–34, title II, § 207(span), Aug. 13, 1981, 95 Stat. 225, related to unused loss deduction, prior to repeal by Puspan. L. 99–514, title X, § 1024(a)(1), Oct. 22, 1986, 100 Stat. 2405, effective for taxable years beginning after Dec. 31, 1986.

A prior section 826 was renumbered section 835 of this title by Puspan. L. 99–514, title X, § 1024(a)(3), Oct. 22, 1986, 100 Stat. 2405.

Amendments

1999—Subsec. (span)(2). Puspan. L. 106–170, § 532(c)(3), substituted “section 1221(a)(2)” for “section 1221(2)”.

Subsec. (c)(3). Puspan. L. 106–170, § 532(c)(1)(D), substituted “section 1221(a)” for “section 1221”.

1996—Subsec. (g). Puspan. L. 104–191 added subsec. (g).

1988—Subsec. (a)(6). Puspan. L. 100–647, § 1011(e)(5)(A), in subpar. (A) substituted “eligible deferred compensation plan” for “eligible State deferred compensation plan”, and in subpar. (B), inserted “or any organization (other than a governmental unit) exempt from tax under this subtitle,” after “foregoing,” and substituted “agency or instrumentality, or organization” for “or agency or instrumentality”.

Subsec. (f)(3). Puspan. L. 100–647, § 1010(k), added par. (3).

1986—Subsec. (a)(3). Puspan. L. 99–514, § 1136(span), substituted “(26), and (27)” for “and (26)”.

Puspan. L. 99–514, § 1112(d)(4), substituted “(22), and (26)” for “and (22)”.

Puspan. L. 99–514, § 1106(d)(3)(C), inserted “(17),” after “(16),”.

Subsec. (a)(6)(A). Puspan. L. 99–514, § 1821(n), in amending subpar. (A) generally, inserted “an eligible State deferred compensation plan (within the meaning of section 457(span)), or”.

Subsec. (e). Puspan. L. 99–514, § 1821(o), amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “If an election under section 1504(c)(2) is in effect with respect to an affiliated group for the taxable year, all items of the members of such group which are not life insurance companies shall not be taken into account in determining the amount of the tentative LICTI of members of such group which are life insurance companies.”

1984—Subsec. (span)(1)(A). Puspan. L. 98–369, § 1001(span)(10), (e), substituted “6 months” for “1 year” in two places, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below.

Statutory Notes and Related Subsidiaries

Effective Date of 1999 Amendment

Amendment by Puspan. L. 106–170 applicable to any instrument held, acquired, or entered into, any transaction entered into, and supplies held or acquired on or after Dec. 17, 1999, see section 532(d) of Puspan. L. 106–170, set out as a note under section 170 of this title.

Effective Date of 1996 Amendment

Puspan. L. 104–191, title III, § 332(span), Aug. 21, 1996, 110 Stat. 2069, provided that:

“(1)In general.—The amendment made by this section [amending this section] shall take effect on January 1, 1997.

“(2)Issuance of rider not treated as material change.—For purposes of applying sections 101(f), 7702, and 7702A of the Internal Revenue Code of 1986 to any contract—

“(A) the issuance of a qualified accelerated death benefit rider (as defined in section 818(g) of such Code (as added by this Act)), and

“(B) the addition of any provision required to conform an accelerated death benefit rider to the requirements of such section 818(g),

shall not be treated as a modification or material change of such contract.”

Effective Date of 1988 Amendment

Puspan. L. 100–647, title I, § 1011(e)(5)(B), Nov. 10, 1988, 102 Stat. 3461, provided that: “The amendments made by this paragraph [amending this section] shall apply to contracts issued after December 31, 1986.”

Amendment by section 1010(k) of Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Effective Date of 1986 Amendment

Amendment by section 1106(d)(3)(C) of Puspan. L. 99–514 applicable to benefits accruing in years beginning after Dec. 31, 1988, except as otherwise provided, see section 1106(i)(5) of Puspan. L. 99–514 set out as a note under section 415 of this title.

Amendment by section 1112(d)(4) of Puspan. L. 99–514 applicable to plan years beginning after Dec. 31, 1988, with special rule regarding collective bargaining agreements ratified before Mar. 1, 1986, and with provision for waiver of the excise tax on reversions, see section 1112(e) of Puspan. L. 99–514, set out as a note under section 401 of this title.

Amendment by section 1821(n), (o) of Puspan. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Puspan. L. 98–369, div. A, to which such amendment relates, see section 1881 of Puspan. L. 99–514, set out as a note under section 48 of this title.

Effective Date of 1984 Amendment

Amendment by Puspan. L. 98–369 applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see section 1001(e) of Puspan. L. 98–369, set out as a note under section 166 of this title.

Regulations

Secretary of the Treasury or his delegate to issue before Fespan. 1, 1988, final regulations to carry out amendments made by section 1112 of Puspan. L. 99–514, see section 1141 of Puspan. L. 99–514, set out as a note under section 401 of this title.

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Puspan. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Puspan. L. 99–514, as amended, set out as a note under section 401 of this title.