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PUBLIC LAW 86-69-JUNE 26, 1969
[73 S T A T.
"SEC. 819. FOREIGN LIFE INSURANCE COMPANIES. " (a) CARRYING ON UNITED STATES INSURANCE BU^NESS.—^A foreign life insurance company carrying on a life insurance business within the United States, if with respect to its United States business it would qualify as a life insurance company under section 801, shall be taxable on the United States business of such company in the same manner as a domestic life insurance company. " (b) ADJUSTMENT W H E R E SURPLUS H E U) IN UNITED STATES I s LESS T H A N SPECIFIED MINIMUM. —
"(1) IN GENERAL.—In the case of any company described in subsection (a), if the minimum figure determined under paragraph (2) exceeds the surplus held in the United States, then— " (A) the amount of the policy and other contract liability requirements (determined under section 805 without regard to this subsection), and " (B) the amount of the required interest (determined under section 809(a)(2) without regard to this subsection), shall each be reduced by an amount determined by multiplying such excess by the current earnings rate (as defined in section 805(b)(2)). "(2) DEFINITIONS.—For purposes of paragraph (1)— " (A) The minimum figure is the amount determined by multiplying the taxpayer's total insurance liabilities on UnitcKi States business by— " (i) in the case of a taxable year beginning before January 1, 1959, 9 percent, and "(ii) in the case of a taxable year beginning after December 31, 1958, a percentage for such year to be determined and proclaimed by the Secretary or his delegate. The percentage determined and proclaimed by the Secretary or his delegate under clause (ii) shall be based on such data with respect to domestic life insurance companies for the preceding taxable year as the Secretary or his delegate considers representative. Such percentage shall be computed on the basis of a ratio the numerator of which is the excess of the assets over the total insurance liabilities, and the denominator of which is the total insurance liabilities. " (B) The surplus held in the United States is the excess of the assets held in the United States over the total insurance liabilities on United States business. For purposes of this paragraph and subsection (c), the term 'total insurance liabilities' means the sum of the total reserves (as defined in section 801(c)) plus (to the extent not included in total reserves) the items referred to in paragraphs (3), (4), and (5) of section 810(c). "(c)
DISTRIBUTIONS TO SHAREHOLDERS.—
"(1) IN GENERAL.—In applying sections 802(b)(3) and 815 for purposes of subsection (a), the amount of the distributions to shareholders shall be determined by multiplying the total amount of the distributions to shareholders (within the meaning of section 815) of the foreign life insurance company by whichever of the following percentages is selected by the taxpayer for the taxable year: " (A) the percentage which the minimum figure for the taxable year (determined under subsection (b)(2)(A)) is of the excess of the assets of the company over the total insurance liabilities; or
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