PUBLIC LAW 98-369—JULY 18, 1984
98 STAT. 737
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"(B) the denominator of which is the amount of the tax reserves allocable to life insurance contracts. The preceding sentence shall not apply unless the fraction determined under the preceding sentence exceeds V20. "(6) SPECIAL RULE FOR CERTAIN CONTRACTS ISSUED BEFORE JAN-
UARY 1, 1985.—In determining the amount of tax reserves of a subsidiary of a mutual insurance company for purposes of subsection (b)(4), section 811(d) shall not apply with respect to any life insurance contract issued before January 1, 1985, under a plan of life insurance in existence on July 1, 1983.
Post, p. 740.
"(h) TREATMENT OF STOCK COMPANIES OWNED BY MUTUAL LIFE INSURANCE COMPANIES.— "(1) TREATMENT AS MUTUAL LIFE INSURANCE COMPANIES FOR PURPOSES OF DETERMINING STOCK EARNINGS RATES AND MUTUAL
EARNINGS RATES.—Solely for purposes of subsections (d) and (e), a stock life insurance company shall be treated as a mutual life insurance company if stock possessing— "(A) at least 80 percent of the total combined voting power of all classes of stock of such stock life insurance • ^ company entitled to vote, or
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"(B) at least 80 percent of the total value of shares of all classes of stock of such stock life insurance company, is owned at any time during the calendar year directly (or through the application of section 318) by one or more mutual life insurance companies. "(2)
TREATMENT
OF
AFFILIATED GROUP WHICH INCLUDES
MUTUAL PARENT AND STOCK SUBSIDIARY,—In the case of an affiliated group of corporations which includes a common parent which is a mutual life insurance company and one or more stock life insurance companies, for purposes of determining the average equity base of such common parent (and the statement gain or loss from operations)— "(A) stock in such stock life insurance companies held by such common parent (and dividends on such stock) shall not be taken into account, and In •> "(B) such common parent and such stock life insurance companies shall be treated as though they were one mutual fc * life insurance company. "(3) ADJUSTMENT WHERE STOCK COMPANY NOT MEMBER OF AFFILIATED GROUP.—In the case of any stock life insurance com-
pany which is described in paragraph (1) but is not a member of an affiliated group described in paragraph (2), under regulations, proper adjustments shall be made in the average equity bases (and statement gains or losses from operations) of mutual life insurance companies owning stock in such company as may be necessary or appropriate to carry out the purposes of this section. "(i) TRANSITIONAL RULE FOR CERTAIN HIGH SURPLUS MUTUAL LIFE INSURANCE COMPANIES.—
"(1) IN GENERAL.—For purposes of subsection (a)(3), the average equity base of a high surplus mutual life insurance company for any taxable year shall not include the applicable percentage of the excess equity base of such company for such taxable year. "(2) DEFINITIONS.—For purposes of this subsection— "(A) EXCESS EQUITY BASE.—The term 'excess equity base' means the excess of—
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