[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 871 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 871
To amend the Internal Revenue Code of 1986 to exempt premiums paid on
non-cash-value property and casualty insurance from the taxes to
enforce reporting on certain foreign accounts.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2017
Mr. Smith of Missouri (for himself, Mr. Larson of Connecticut, and Mr.
Royce of California) introduced the following bill; which was referred
to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to exempt premiums paid on
non-cash-value property and casualty insurance from the taxes to
enforce reporting on certain foreign accounts.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. EXEMPTION FOR PREMIUMS PAID ON NON-CASH-VALUE PROPERTY AND
CASUALTY INSURANCE FROM TAXES TO ENFORCE REPORTING ON
CERTAIN FOREIGN ACCOUNTS.
(a) In General.--Section 1473(1) of the Internal Revenue Code of
1986 is amended by redesignating subparagraph (C) as subparagraph (D)
and by inserting after subparagraph (B) the following new subparagraph:
``(C) Exception for premiums paid on non-cash-value
property and casualty insurance.--
``(i) In general.--Such term shall not
include any premium paid for any insurance
contract if--
``(I) such insurance contract does
not have an aggregate cash value
greater than zero, and
``(II) no portion of the reserves,
unearned premiums, or unpaid losses,
with respect to such contract are taken
into account under paragraph (1) or (2)
of section 816(a).
``(ii) Cash value.--The term `cash value'
means any amount (determined without reduction
for any charge or policy loan) that--
``(I) is payable under the contract
to any person upon surrender,
termination, cancellation, or
withdrawal, or
``(II) can be borrowed by any
person under, or with regard to, the
contract (including by pledging as
collateral).
``(iii) Exceptions.--Notwithstanding clause
(ii), the term `cash value' shall not include
any amount payable--
``(I) solely by reason of the death
of an individual insured under a life
insurance contract,
``(II) as a personal injury or
sickness benefit or a benefit providing
indemnification of an economic loss
incurred upon the occurrence of the
event insured against,
``(III) as a refund of a previously
paid premium (less cost of insurance
charges whether or not actually
imposed) under an insurance contract
(other than a life insurance contract)
due to cancellation or termination of
the contract, decrease in risk exposure
during the effective period of the
contract, or arising from the
correction of a posting or similar
error with regard to the premium for
the contract,
``(IV) as a policyholder dividend
(other than a termination dividend)
provided that the dividend relates to
an insurance contract under which the
only benefits payable are described in
subclause (II), or
``(V) as a return of an advance
premium or premium deposit for an
insurance contract for which the
premium is payable at least annually if
the amount of the advance premium or
premium deposit does not exceed the
next annual premium that will be
payable under the contract.''.
(b) Effective Date.--The amendments made by this section shall
apply to payments made after the date of the enactment of this Act.
<all>