TREATMENT OF LIFE INSURANCE RESERVES OF INSURANCE COMPANIES WHICH ARE NOT LIFE INSURANCE COMPANIES.

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”. (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 accounting.— 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— 104 STAT. 1388–451 (A) such change shall be treated as a change in a method of accounting, (B) such change shall be treated as initiated by the taxpayer, (C) such change shall be treated as having been made with the consent of the Secretary, and (D) the net adjustments which are required by section 481 of the Internal Revenue Code of 1986 to be taken into account by the taxpayer shall be taken into account over a period not to exceed 4 taxable years beginning with the taxpayer’s first taxable year beginning on or after September 30, 1990. (3) Coordination with section 832(b)(4)(C).— The amendments made by this section shall not affect the application of section 832(b)(4)(C) of the Internal Revenue Code of 1986.