[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.806-1]

[Page 620]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.806-1  Adjustment for certain reserves.

    (a) For taxable years beginning after December 31, 1953, but before 
January 1, 1955, and ending after August 16, 1954, a life insurance 
company writing contracts other than life insurance or annuity contracts 
(either separately or combined with noncancellable health and accident 
insurance contracts) must add to its life insurance company taxable 
income (as a factor in determining 1954 adjusted taxable income) an 
amount equal to eight times the amount of the adjustment for certain 
reserves provided in paragraph (b) of this section.
    (b) The adjustment for certain reserves referred to in paragraph (a) 
of this section shall be an amount equal to 3 1/4 percent of the mean of 
the unearned premiums and unpaid losses at the beginning and end of the 
taxable year on such other contracts as are not included in life 
insurance reserves. If such unearned premiums, however, are less than 25 
percent of the net premiums written during the taxable year on such 
other contracts, then the adjustment shall be 3 1/4 percent of 25 
percent of the net premiums written during the taxable year on such 
other contracts plus 3 1/4 percent of the mean of the unpaid losses at 
the beginning and end of the taxable year on such other contracts. As 
used in this section, the term ``unearned premiums'' has the same 
meaning as in section 832(b)(4) and Sec. 1.832-1.