,,ii #aad? ,,congress #a/ ,session ,s4 #afhg ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,june #be1 #bjae,mr4 ,wyd5 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to re/rict ! insurance bus9ess exception to passive =eign inve/m5t company rules4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,(f%ore ,re9surance ,tax ,fairness ,act4 #b4 ,re/riction on insurance bus9ess exception to passive =eign inve/m5t company rules 7a7 ,9 g5]al ,section #abig7;b77#b77;,b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7,b7 d]iv$ 9 ! active conduct ( an insurance bus9ess by a qualify+ insurance corporation 7z def9$ 9 subsection 7f771 4 7b7 ,qualify+ insurance corporation def9$ ,section #abig ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,qualify+ insurance corporation ,= purposes ( subsection 7b77#b77;,b7-- 7#a7 ,9 g5]al ,! t]m qualify+ insurance corporation means1 ) respect to any taxable ye>1 a =eign corporation-- 7,a7 :i* w\ld be subject to tax "u sub*apt] ,l if su* corporation 7 a dome/ic corporation1 & 7,b7 ! applicable insurance liabilities ( :i* con/itute m ?an #be p]c5t ( its total assets1 det]m9$ on ! basis ( su* liabilities & assets z report$ on ! corporation's applicable f9ancial /atem5t = ! la/ ye> end+ ) or )9 ! taxable ye>4 7#b7 ,alt]native facts & circum/ances te/ = c]ta9 corporations ,if a corporation fails to qualify z a qualifi$ insurance corporation "u p>agraph 7#a7 solely because ! p]c5tage det]m9$ "u p>agraph 7#a77;,b7 is #be p]c5t or less1 a ,unit$ ,/ates p]son t owns /ock 9 su* corporation may elect to treat su* /ock z /ock ( a qualify+ insurance corporation if-- 7,a7 ! p]c5tage s det]m9$ = ! corporation is at lea/ #aj p]c5t1 & 7,b7 "u regulations provid$ by ! ,secret>y1 bas$ on ! applicable facts & circum/ances-- 7i7 ! corporation is pr$om9antly engag$ 9 an insurance bus9ess1 & 7ii7 su* failure is due solely to tempor>y circum/ances involv+ su* insurance bus9ess4 7#c7 ,applicable insurance liabilities ,= purposes ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m applicable insurance liabilities means1 ) respect to any life or prop]ty & casualty insurance bus9ess-- 7i7 loss & loss adju/m5t exp5ses1 & 7ii7 res]ves 7o!r ?an defici5cy1 cont+5cy1 or une>n$ premium res]ves7 = life & heal? insurance risks & life & heal? insurance claims ) respect to contracts provid+ cov]age = mortality or morbidity risks4 7,b7 ,limitations on am\nt ( liabilities ,any am\nt det]m9$ "u clause 7i7 or 7ii7 ( subp>agraph 7,a7 %all n exce$ ! less] ( su* am\nt-- 7i7 z report$ to ! applicable insurance regulatory body 9 ! applicable f9ancial /atem5t describ$ 9 p>agraph 7#d77;,a7 7or1 if less1 ! am\nt requir$ by applicable law or regulation71 or 7ii7 z det]m9$ "u regulations prescrib$ by ! ,secret>y4 7#d7 ,o!r def9itions & rules ,= purposes ( ?is subsection-- 7,a7 ,applicable f9ancial /atem5t ,! t]m applicable f9ancial /atem5t means a /atem5t = f9ancial report+ purposes :i*-- 7i7 is made on ! basis ( g5]ally accept$ acc\nt+ pr9ciples1 7ii7 is made on ! basis ( int]national f9ancial report+ /&>ds1 b only if !re is no /atem5t t meets ! requirem5t ( clause 7i71 or 7iii7 except z o!rwise provid$ by ! ,secret>y 9 regulations1 is ! annual /atem5t :i* is requir$ to be fil$ ) ! applicable insurance regulatory body1 b only if !re is no /atem5t :i* meets ! requirem5ts ( clause 7i7 or 7ii74 7,b7 ,applicable insurance regulatory body ,! t]m applicable insurance regulatory body means1 ) respect to any insurance bus9ess1 ! entity e/abli%$ by law to lic5se1 au?orize1 or regulate su* bus9ess & to :i* ! /atem5t describ$ 9 subp>agraph 7,a7 is provid$4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjae4