VARIABLE CONTRACTS INVESTED IN GOVERNMENT SECURITIES PERMITTED.

SEC. 6080. VARIABLE CONTRACTS INVESTED IN GOVERNMENT SECURITIES PERMITTED. (a) In General.—Subsection (h) of section 817 of the 1986 Code (relating to treatment of certain nondiversified contracts) is amended by adding at the end thereof the following new paragraph: “(6) Government securities funds.—In determining whether a segregated asset account is adequately diversified for purposes of paragraph (1), each United States Government agency or instrumentality shall be treated as a separate issuer.” (b) Effective Date.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1987