Page 96 - Tax Reform

131 STAT. 2146 PUBLIC LAW 115–97—DEC. 22, 2017

benefit shall be computed separately as though such benefit
were under a separate contract.
‘‘(B) QUALIFIED SUPPLEMENTAL BENEFIT.—For purposes
of this paragraph, the term ‘qualified supplemental benefit’
means any supplemental benefit described in subparagraph
(C) if—
‘‘(i) there is a separately identified premium or
charge for such benefit, and
‘‘(ii) any net surrender value under the contract
attributable to any other benefit is not available to
fund such benefit.
‘‘(C) SUPPLEMENTAL BENEFITS.—For purposes of this
paragraph, the supplemental benefits described in this
subparagraph are any—
‘‘(i) guaranteed insurability,
‘‘(ii) accidental death or disability benefit,
‘‘(iii) convertibility,
‘‘(iv) disability waiver benefit, or
‘‘(v) other benefit prescribed by regulations,
which is supplemental to a contract for which there is
a reserve described in subsection (c).’’, and
(D) by adding at the end the following new paragraph:
‘‘(6) REPORTING RULES.—The Secretary shall require
reporting (at such time and in such manner as the Secretary
shall prescribe) with respect to the opening balance and closing
balance of reserves and with respect to the method of computing
reserves for purposes of determining income.’’.
(4) DEFINITION OF LIFE INSURANCE CONTRACT.—Section
26 USC 7702. 7702 is amended—
(A) by striking clause (i) of subsection (c)(3)(B) and
inserting the following:
‘‘(i) reasonable mortality charges which meet the
requirements prescribed in regulations to be promul-
gated by the Secretary or that do not exceed the mor-
tality charges specified in the prevailing commis-
sioners’ standard tables as defined in subsection
(f)(10),’’ and
(B) by adding at the end of subsection (f) the following
new paragraph:
‘‘(10) PREVAILING COMMISSIONERS’ STANDARD TABLES.—For
purposes of subsection (c)(3)(B)(i), the term ‘prevailing commis-
sioners’ standard tables’ means the most recent commissioners’
standard tables prescribed by the National Association of Insur-
ance Commissioners which are permitted to be used in com-
puting reserves for that type of contract under the insurance
laws of at least 26 States when the contract was issued. If
the prevailing commissioners’ standard tables as of the begin-
ning of any calendar year (hereinafter in this paragraph
referred to as the ‘year of change’) are different from the pre-
vailing commissioners’ standard tables as of the beginning of
the preceding calendar year, the issuer may use the prevailing
commissioners’ standard tables as of the beginning of the pre-
ceding calendar year with respect to any contract issued after
the change and before the close of the 3-year period beginning
dkrause on DSKBC28HB2PROD with PUBLAWS VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00094 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097
on the first day of the year of change.’’.
(b) CONFORMING AMENDMENTS.—