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Treasury Regulations · 26 CFR

§ 1.801-6. Adjustments in reserves for policy loans.

In effect eCFR current as of October 15, 2026

Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).

Regulation under 26 U.S.C. § 801

Cite as 26 CFR § 1.801-6

At a glance

Read from the text and its source citation. Not part of the regulation.

Status
In the current eCFR
Issued
December 10, 1960 by T.D. 6513
Issued under
26 U.S.C. § 801
Length
341 words · about 1 min to read
Defines
1 term
Cross-references
cites 2 Code sections and 4 regulations; cited by 1
(a) In general. Section 801(d) provides that for purposes only of determining whether or not an insurance company is a life insurance company (as defined in section 801(a) and paragraph (b) of § 1.801-3), the life insurance reserves (as defined in section 801(b) and § 1.801-4), and the total reserves (as defined in section 801(c) and paragraph (a) of § 1.801-5), shall each be reduced by an amount equal to the mean of the aggregates, at the beginning and end of the taxable year, of the policy loans outstanding with respect to contracts for which life insurance reserves are maintained. Such reduction shall be made after any adjustments required under section 806(a) and § 1.806-3 have been made.
(b) Policy loans defined. The term policy loans includes loans made by the insurance company, by whatever name called, for which the reserve on a contract is the collateral.
(c) Illustration of principles. The provisions of section 801(d) and this section may be illustrated by the following example:
Example.

The books of T, an insurance company, selling only life insurance and cancellable accident and health insurance, reflect (after adjustment under section 806 (a)) the following facts for the taxable year 1958:

Jan. 1Dec. 31Mean of year
1. Life insurance reserves$1,000$2,000$1,500
2. Policy loans50850450
3. Life insurance reserves less policy loans1,050
4. Unearned premiums, and unpaid losses (whether or not ascertained), on cancellable accident and health insurance9001,6001,250
5. Total reserves adjusted for policy loans (item 3 plus item 4)2,300

As the rules provided by section 801 (a) and (d) require that the figure in item 3 ($1,050) be more than 50 percent of the mean of the year figure in item 5 ($2,300) for an insurance company to qualify as a life insurance company, T would not qualify as a life insurance company for the taxable year 1958.

[T.D. 6513, 25 FR 12657, Dec. 10, 1960]

Terms defined here

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Other regulations under § 801

Cross-references

Computed from the citations in the text of 26 CFR.

Code sections it cites

Regulations it cites

Cited by 1 other regulation

Amendment history

From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.

  1. Issued by T.D. 6513 (25 FR 12657)

Where it sits in 26 CFR

  1. Subchapter A Income tax
  2. Part 1 Income taxes
  3. Definition; tax imposed

Nearby sections