TREATMENT OF CERTAIN INVESTMENT-ORIENTED LIFE INSURANCE CONTRACTS.

SEC. 7647. TREATMENT OF CERTAIN INVESTMENT-ORIENTED LIFE INSURANCE CONTRACTS. (a) General Rule.—Subsection (c) of section 7702A (relating to computational rules) is amended by adding at the end thereof the following new paragraph: 103 STAT. 2383 “(6) Treatment of certain contracts with more than one insured.— If— “(A) a contract provides a death benefit which is payable only upon the death of 1 insured following (or occurring simultaneously with) the death of another insured, and “(B) there is a reduction in such death benefit below the lowest level of such death benefit provided under the contract during the 1st 7 contract years, this section shall be applied as if the contract had originally been issued at the reduced benefit level.” (b) Effective Date.—The amendment made by subsection (a) shall apply to contracts entered into on or after September 14, 1989.