104 STAT. 1388-450 PUBLIC LAW 101-508—NOV. 5, 1990 "(A) IN GENERAL.—The amount taken into account for purposes of subsections (a) and (b) as— "(i) the opening balance of the items referred to in subparagraph (C), and "(ii) the closing balance of such items, shall be 80 percent of the amount which (without regard to this subparagraph) would have been taken into account as such opening or closing balance, as the case may be. " (B) TRANSITIONAL RULE. — "(i) IN GENERAL. — In the case of any taxable year beginning on or after September 30, 1990, and before September 30, 1996, there shall be included in the gross income of any life insurance company an amount equal to 3 1/3 percent of such company's closing balance of the items referred to in subparagraph (C) for its most recent taxable year beginning before September 30, 1990. "(ii) TERMINATION AS LIFE INSURANCE COMPANY. — Except as provided in section 381(c)(22), if, for any taxable year beginning on or before September 30, 1996, the taxpayer ceases to be a life insurance company, the aggregate inclusions which would have been made under clause (i) for such taxable year and subsequent taxable years but for such cessation shall be taken into account for the taxable year preceding such cessation year. "(C) DESCRIPTION OF ITEMS.—For purposes of this paragraph, the items referred to in this subparagraph are the items described in subsection (c) which consist of unearned premiums and premiums received in advance under insurance contracts not described in section 816(b)(l)(B)." 26 USC 807 note. (b) EFFECTIVE DATE. —The amendment made by subsection (a) shall apply to taxable years beginning on or after September 30, 1990. SEC. 11303. TREATMENT OF LIFE INSURANCE RESERVES OF INSURANCE COMPANIES WHICH ARE NOT LIFE INSURANCE COMPANIES. (a) GENERAL RULE. —Paragraph (4) of section 832(b) (defining premiums earned) is amended by striking "section 807, pertaining" and all that follows down through the period at the end of the first sentence which follows subparagraph (C) and inserting "section 807.". (b) TECHNICAL AMENDMENT. —Subparagraph (A) of section 832(b)(7) is amended— (1) by striking "amounts included in unearned premiums under the 2nd sentence of such subparagraph" and inserting "insurance contracts described in section 816(b)(l)(B)", and (2) by striking "such amounts into account" and inserting "such contracts into account". 26 USC 832 note. (c) EFFECTIVE DATE. — (1) IN GENERAL.—The amendments made by this section shall apply to taxable years beginning on or after September 30, 1990. (2) AMENDMENTS TREATED AS CHANGE IN METHOD OF ACCOUNT- ING.— In the case of any taxpayer who is required by reason of the amendments made by this section to change his method of computing reserves—
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