Treasury Regulations · 26 CFR
§ 1.807-1. Computation of life insurance reserves.
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. § 807
Cite as 26 CFR § 1.807-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- October 13, 2020 by T.D. 9911
- Issued under
- 26 U.S.C. § 807
- Length
- 305 words · about 1 min to read
- Cross-references
- cites 1 Code section and 0 regulations; cited by 1
¶(a) Tax reserve method. For purposes of determining the amount of life insurance reserves for a contract under section 807(d)(1), section 807(d)(2) requires the determination of the amount of the reserve for a contract using the tax reserve method applicable to the contract. Under section 807(d)(3), the tax reserve method applicable to the contract is the Commissioners' Reserve Valuation Method (CRVM), the Commissioners' Annuities Reserve Valuation Method (CARVM), or other reserve method prescribed by the National Association of Insurance Commissioners (NAIC) that applies to the contract as of the date the reserve is determined. If the NAIC has not prescribed a reserve method that covers the contract, a reserve method that is consistent with the CRVM, the CARVM, or other NAIC-prescribed method as of the date the reserve is determined (whichever is most appropriate) must be used.
¶(b) No asset adequacy reserve. The life insurance reserve determined under section 807(d)(1) does not include any asset adequacy reserve.
¶(1) An asset adequacy reserve is—
¶(i) Any reserve that is established as an additional reserve based upon an analysis of the adequacy of reserves that would otherwise be established in accordance with the requirements set forth in the NAIC Valuation Manual, such as the CRVM or CARVM as applicable, or
¶(ii) Any similar reserve.
¶(2) In determining whether a reserve is a life insurance reserve, the label placed on such reserve is not determinative, provided, however, any reserve or portion of a reserve that would have been established pursuant to an asset adequacy analysis required by the NAIC's Valuation Manual 30 as it existed on December 22, 2017, the date of enactment of Public Law 115-97, is an asset adequacy reserve.
¶(c) Applicability date. The rules of this section apply to taxable years beginning after October 13, 2020.
[T.D. 9911, 85 FR 64392, Oct. 13, 2020]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections 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.
- Issued by T.D. 9911 (85 FR 64392)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Investment income
Nearby sections
- § 1.804-3 Gross investment income of a life insurance company.
- § 1.804-4 Investment yield of a life insurance company.
- § 1.806-3 Certain changes in reserves and assets.
- § 1.807-1 Computation of life insurance reserves.
- § 1.807-2 Cross-reference.
- § 1.807-3 Reporting of reserves.
- § 1.807-4 Adjustment for change in computing reserves.