§ 803. Life insurance gross income

• (a) For purposes of this part, the term “life insurance gross income” means the sum of the following amounts:
  • (1)
    • (A) The gross amount of premiums and other consideration on insurance and annuity contracts, less
    • (B) return premiums, and premiums and other consideration arising out of indemnity reinsurance.
  • (2) Each net decrease in reserves which is required by section 807(a) to be taken into account under this paragraph.
  • (3) All amounts not includible under paragraph (1) or (2) which under this subtitle are includible in gross income.
• (b)
  • (1) For purposes of subsection (a)(1)(A), the term “gross amount of premiums and other consideration” includes—
    • (A) advance premiums,
    • (B) deposits,
    • (C) fees,
    • (D) assessments,
    • (E) consideration in respect of assuming liabilities under contracts not issued by the taxpayer, and
    • (F) the amount of policyholder dividends reimbursable to the taxpayer by a reinsurer in respect of reinsured policies,
  • (2) For purposes of subsection (a)(1)(B)—
    • (A) Except as provided in subparagraph (B), the term “return premiums” does not include any policyholder dividends.
    • (B) Subparagraph (A) shall not apply to amounts of premiums or other consideration returned to another life insurance company in respect of indemnity reinsurance.