Common use of Assessment companies Clause in Contracts

Assessment companies. Section 801(b)(3) provides that in the case of an assessment life insurance company or association, the term life insurance re- serves includes: (1) Sums actually deposited by such company or association with officers of a State or Territory pursuant to law as guaranty or reserve funds, and (2) Any funds maintained, under the charter or articles of incorporation or association of such company or asso- ciation (or bylaws approved by the State insurance commissioner) of such company or association, exclusively for the payment of claims arising under certificates of membership or policies issued upon the assessment plan and not subject to any other use. For purposes of part I, subchapter L, chapter 1 of the Code, the reserves de- scribed in this paragraph shall be in- cluded as life insurance reserves even though such reserves do not meet the requirements of section 801(b) and paragraph (a) of this section. However, for such reserves to be included as life insurance reserves, they must be depos- ited or maintained to liquidate future unaccrued claims arising from life in- surance, annuity, or noncancellable health and accident insurance con- tracts (including life insurance or an- nuity contracts combined with noncancellable health and accident in- surance) involving, at the time with re- spect to which the reserve is deposited or maintained, life, health, or accident contingencies. The rate of interest as- sumed in calculating the reserves de- scribed in this paragraph shall be 3 per- cent, regardless of the rate of interest (if any) specified in the contract in re- spect of such reserves.

Assessment companies. Section 801(b)(3) provides that in the case of an assessment life insurance company or association, the term life insurance re- serves includes: (1) Sums actually deposited by such company or association with officers of a State or Territory pursuant to law as guaranty or reserve funds, and (2) Any funds maintained, under the charter or articles of incorporation or association of such company or asso- ciation (or bylaws approved by the State insurance commissioner) of such company or association, exclusively for the payment of claims arising under certificates of membership or policies issued upon the assessment plan and not subject to any other use. For purposes of part I, subchapter L, chapter 1 of the Code, the reserves de- scribed in this paragraph shall be in- cluded as life insurance reserves even though such reserves do not meet the requirements of section 801(b) and paragraph (a) of this section. However, for such reserves to be included as life insurance reserves, they must be depos- ited or maintained to liquidate future unaccrued claims arising from life in- surance, annuity, or noncancellable health and accident insurance con- tracts (including life insurance or an- nuity contracts combined with noncancellable health and accident in- surance) involving, at the time with re- spect to which the reserve is deposited or maintained, life, health, or accident contingencies. The rate of interest as- sumed in calculating the reserves de- scribed in this paragraph shall be 3 per- cent, regardless of the rate of interest (if any) specified in the contract in re- spect of such reserves.accident