73 S T A T. ]
PUBLIC LAW 8 6 - 6 9 - J U N E 25, 1959
119
"(ii) the current earnings rate for any taxable year of any company which, for such year, is an insurance company (but not a life insurance company) shall be determined as if this part applied to such company for such year. "(4) ASSETS.—For purposes of this part, the term 'assets' means all assets of the company (including nonadmitted assets), other than real and personal property (excluding money) used by it in carrying on an insurance trade or business. For purposes of this paragraph, the amount attributable to— " (A) real property and stock shall be the fair market value thereof, and " (B) any other asset shall be the adjusted basis (determined without regard to fair market value on December 31, 1958) of such asset for purposes of determining gain on sale or other disposition. "(c)
ADJUSTED L I F E INSURANCE RESERVES.— "(1) ADJUSTED LIFE INSURANCE RESERVES DEFINED.—For
purposes of this part, the term 'adjusted life insurance reserves' means— " (A) the mean of the life insurance reserves (as defined in section 801(b)), other than pension plan reserves, at the beginning and end of the taxable year, multiplied by " (B) that percentage which equals 100 percent— " (i) increased by that percentage which is 10 times the average rate oi interest assumed by the taxpayer in calculating such reserves, and "(ii) reduced by that percentage which is 10 times the adjusted reserves rate. "(2) AVERAGE INTEREST RATE ASSUMED.—For purposes of this part, the average rate of interest assumed in calculating reserves shall be computed— " (A) by multiplying each assumed rate of interest by the means of the amounts of such reserves computed at that rate at the beginning and end of the taxable year, and " (B) by dividing (i) the sum of the products ascertained under subparagraph (A), by (ii) the mean of the total of such reserves at the beginning and end of the taxable year. "(d)
PENSION P L A N RESERVES.— "(1) PENSION PLAN RESERVES DEFINED.—For
purposes of this part, the term 'pension plan reserves' means that portion of the life insurance reserves which is allocable to contracts— " (A) purchased under contracts entered into with trusts which (as of the time the contracts were entered into) were deemed to be (i) trusts described in section 401(a) and exempt from tax under section 501(a), or (ii) trusts exempt from tax under section 165 of the Internal Revenue Code of 1939 or the corresponding provisions of prior revenue laws; " (B) purchased under contracts entered into under plans which (as of the time the contracts were entered into) were deemed to be plans meeting the requirements of section 401 (a)(3), (4), (5), and (6), or the requirements of section 165(a)(3), (4), (5), and (6) of the Internal Revenue Code of 1939; " (C) provided for employees of the life insurance company under a plan which, for the taxable year, meets the requirements of section 401(a)(3), (4), (5), and (6); or " (D) purchased to provide retirement annuities for its employees by an organization which (as of the time the con-
26 USC 4oi,5oi. ^^ ^*^*- ^•
^^ ^^^ '*°^53 Stat. 67,
26 USC 40 1.
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