# 26 U.S.C. § 803: Life insurance gross income

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s803>. Cite pinpoints as 26 U.S.C. § 803(a)(1).

## § 803(a) In general

For purposes of this part, the term “life insurance gross income” means the sum of the following amounts:

**§ 803(a)(1) Premiums.**

**§ 803(a)(1)(A)** The gross amount of premiums and other consideration on insurance and annuity contracts, less

**§ 803(a)(1)(B)** return premiums, and premiums and other consideration arising out of indemnity reinsurance.

**§ 803(a)(2) Decreases in certain reserves.** Each net decrease in reserves which is required by section 807(a) to be taken into account under this paragraph.

**§ 803(a)(3) Other amounts.** All amounts not includible under paragraph (1) or (2) which under this subtitle are includible in gross income.

## § 803(b) Special rules for premiums

**§ 803(b)(1) Certain items included.** For purposes of subsection (a)(1)(A), the term “gross amount of premiums and other consideration” includes—

**§ 803(b)(1)(A)** advance premiums,

**§ 803(b)(1)(B)** deposits,

**§ 803(b)(1)(C)** fees,

**§ 803(b)(1)(D)** assessments,

**§ 803(b)(1)(E)** consideration in respect of assuming liabilities under contracts not issued by the taxpayer, and

**§ 803(b)(1)(F)** the amount of policyholder dividends reimbursable to the taxpayer by a reinsurer in respect of reinsured policies,

on insurance and annuity contracts.

**§ 803(b)(2) Policyholder dividends excluded from return premiums.** For purposes of subsection (a)(1)(B)—

**§ 803(b)(2)(A) In general.** Except as provided in subparagraph (B), the term “return premiums” does not include any policyholder dividends.

**§ 803(b)(2)(B) Exception for indemnity reinsurance.** Subparagraph (A) shall not apply to amounts of premiums or other consideration returned to another life insurance company in respect of indemnity reinsurance.

## Final rules

- [84 FR 9231](https://www.federalregister.gov/documents/2019/03/14/2019-03474/eliminating-unnecessary-tax-regulations) (2019): Eliminating Unnecessary Tax Regulations

## Leading cases

- [United Benefit Life Insurance Co. v. McCrory, 414 F.2d 928 (8th Cir. 1969)](https://www.courtlistener.com/opinion/286108/united-benefit-life-insurance-company-a-corporation-v-james-l-mccrory/)
- [Equitable Life Assurance Soc. v. United States, 181 F. Supp. 241 (Ct. Cl. 1960)](https://www.courtlistener.com/opinion/1496566/equitable-life-assurance-soc-of-us-v-united-states/)

## Connections

Cites: § 807 Rules for certain reserves

Cited by: § 59A Tax on base erosion payments of taxpayers with substantial gross receipts; § 807 Rules for certain reserves; § 848 Capitalization of certain policy acquisition expenses; § 953 Insurance income

## Prior provisions

- A prior section 803, acts Aug. 16, 1954, ch. 736, 68A Stat. 256; Mar. 13, 1956, ch. 83, § 2, 70 Stat. 39, related to income and deductions in the case of life insurance companies, prior to the general revision of this part by Pub. L. 86–69, § 2(a), June 25, 1959, 73 Stat. 112.

## Amendments

- 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 721