100 STAT. 2844
PUBLIC LAW 99-514—OCT. 22, 1986
commissioner's standard table adopted by the twenty-sixth State as of a date (no earlier than the date the regulation is issued) specified by the Secretary." (t) AMENDMENT RELATED TO SECTION 817.—
(1) Subsection (d) of section 817 is amended by adding at the end thereof the following new sentence: "Paragraph (3) shall be applied without regard to whether there is a guarantee, and obligations under such guarantee which exceed obligations under the contract without regard to such guarantee shall be accounted for as part of the company's general account." (2) The amendment made by paragraph (1) shall apply— (A) to contracts issued after December 31, 1986, and (B) to contracts issued before January 1, 1987, if such contract was treated as a variable contract on the taxpayer's return. SEC. 1822. AMENDMENTS RELATED TO SECTION 216 OF THE ACT. (a) CLARIFICATION OF APPLICATION OF 10-YEAR SPREAD.—Subpara-
graph (C) of section 216(b)(3) of the Tax Reform Act of 1984 (relating to 10-year spread inapplicable where no 10-year spread under prior law) is amended by striking out "was required to have been taken into account" and inserting in lieu thereof "would have been required to be taken into account". (b) TREATMENT OF CERTAIN ELECTIONS UNDER SECTION 818(C).—
Subparagraph (B) of section 216(b)(4) of the Tax Reform Act of 1984 (relating to the elections under section 818(c) after September 27, 1983, not taken into account) is amended by striking out "Subparagraph (A)" and inserting in lieu thereof "Paragraph (3) and subparagraph (A) of this paragraph". (c) ELECTION NOT TO HAVE RESERVES RECOMPUTED.—
(1) Clause (ii) of section 216(c)(2)(A) of the Tax Reform Act of 1984 (relating to election with respect to contracts issued after 1983 and before 1989) is amended by striking out "$3,000,000" and inserting in lieu thereof "$3,000,000 (determined with regard to this paragraph)". (2) Subparagraph (A) of section 216(c)(2) of the Tax Reform Act of 1984 is amended by striking out "be equal to" and all that follows down through the period at the end thereof and inserting in lieu thereof the following: "be equal to the greater of the statutory reserve for such contract (adjusted as provided in subparagraph (B)) or the net surrender value of such contract (as deHned in section 807(e)(1) of the Internal Revenue Code of 1954)." (3) Subparagraph (B) of section 216(c)(2) of the Tax Reform Act of 1984 is amended— (A) by striking out "statutory reserves" and inserting in lieu thereof "opening and closing statutory reserves", and (B) by striking out "under section 805(c)(1) of such Code" and inserting in lieu thereof "under the principles of section 805(c)(1) of such Code". (d) SPECIAL RULE WHERE REINSURER NOT USING CALENDAR YEAR
AS TAXABLE YEAR.—Subparagraph (A) of section 216(b)(3) of the Tax Reform Act of 1984 is amended by adding at the end thereof the following: "For purposes of this subparagraph, if the reinsurer's taxable year is not a calendar year, the first day of the reinsurer's first taxable year beginning after December 31, 1983, shall be substituted for 'January 1, 1984' each place it appears."
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