Page 95 - Tax Reform

PUBLIC LAW 115–97—DEC. 22, 2017 131 STAT. 2145

‘‘(B) VARIABLE CONTRACTS.—For purposes of this part
(other than section 816), the amount of the life insurance
reserves for a variable contract shall be equal to the sum
of—
‘‘(i) the greater of—
‘‘(I) the net surrender value of such contract,
or
‘‘(II) the portion of the reserve that is sepa-
rately accounted for under section 817, plus
‘‘(ii) 92.81 percent of the excess (if any) of the
reserve determined under paragraph (2) over the
amount in clause (i).
‘‘(C) STATUTORY CAP.—In no event shall the reserves
determined under subparagraphs (A) or (B) for any contract
as of any time exceed the amount which would be taken
into account with respect to such contract as of such time
in determining statutory reserves (as defined in paragraph
(4)).
‘‘(D) NO DOUBLE COUNTING.—In no event shall any
amount or item be taken into account more than once
in determining any reserve under this subchapter.
‘‘(2) AMOUNT OF RESERVE.—The amount of the reserve
determined under this paragraph with respect to any contract
shall be determined by using the tax reserve method applicable
to such contract.’’.
(D) by striking ‘‘(other than a qualified long-term care
insurance contract, as defined in section 7702B(b)), a 2-
year full preliminary term method’’ in paragraph (3)(A)(iii)
and inserting ‘‘, the reserve method prescribed by the
National Association of Insurance Commissioners which
covers such contract as of the date the reserve is deter-
mined’’,
(E) by striking ‘‘(as of the date of issuance)’’ in para-
graph (3)(A)(iv)(I) and inserting ‘‘(as of the date the reserve
is determined)’’,
(F) by striking ‘‘as of the date of the issuance of’’
in paragraph (3)(A)(iv)(II) and inserting ‘‘as of the date
the reserve is determined for’’,
(G) by striking ‘‘in effect on the date of the issuance
of the contract’’ in paragraph (3)(B)(i) and inserting
‘‘applicable to the contract and in effect as of the date
the reserve is determined’’, and
(H) by striking ‘‘in effect on the date of the issuance
of the contract’’ in paragraph (3)(B)(ii) and inserting
‘‘applicable to the contract and in effect as of the date
the reserve is determined’’.
(3) SPECIAL RULES.—Section 807(e) is amended— 26 USC 807.
(A) by striking paragraphs (2) and (5),
(B) by redesignating paragraphs (3), (4), (6), and (7)
as paragraphs (2), (3), (4), and (5), respectively,
(C) by amending paragraph (2) (as so redesignated)
to read as follows:
‘‘(2) QUALIFIED SUPPLEMENTAL BENEFITS.—
‘‘(A) QUALIFIED SUPPLEMENTAL BENEFITS TREATED
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SEPARATELY.—For purposes of this part, the amount of
the life insurance reserve for any qualified supplemental