I 
114TH CONGRESS 
2D SESSION 
H. R. 6159 
To amend the Internal Revenue Code of 1986 to exempt premiums paid 
on non-cash-value property and casualty insurance from the taxes to 
enforce reporting on certain foreign accounts. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 22, 2016 
Mr. ROYCE (for himself and Mr. LARSON of Connecticut) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to exempt 
premiums paid on non-cash-value property and casualty 
insurance from the taxes to enforce reporting on certain 
foreign accounts. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EXEMPTION FOR PREMIUMS PAID ON NON- 
CASH-VALUE PROPERTY AND CASUALTY IN-
SURANCE FROM TAXES TO ENFORCE RE-
PORTING ON CERTAIN FOREIGN ACCOUNTS. 
(a) IN GENERAL.—Section 1473(1) of such Code is 
amended by redesignating subparagraph (C) as subpara-
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graph (D) and by inserting after subparagraph (B) the 
following new subparagraph: 
‘‘(C) EXCEPTION FOR PREMIUMS PAID ON 
NON-CASH-VALUE PROPERTY AND CASUALTY IN-
SURANCE.— 
‘‘(i) IN
GENERAL.—Such term shall 
not include any premium paid for any in-
surance contract if— 
‘‘(I) such insurance contract does 
not have an aggregate cash value 
greater than zero, and 
‘‘(II) no portion of the reserves, 
unearned premiums, or unpaid losses, 
with respect to such contract are 
taken into account under paragraph 
(1) or (2) of section 816(a). 
‘‘(ii) CASH VALUE.—The term ‘cash 
value’ means any amount (determined 
without reduction for any charge or policy 
loan) that— 
‘‘(I) is payable under the con-
tract to any person upon surrender, 
termination, cancellation, or with-
drawal, or 
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‘‘(II) can be borrowed by any 
person under, or with regard to, the 
contract (including by pledging as col-
lateral). 
‘‘(iii) EXCEPTIONS.—Notwithstanding 
clause (ii), the term ‘cash value’ shall not 
include any amount payable— 
‘‘(I) solely by reason of the death 
of an individual insured under a life 
insurance contract, 
‘‘(II) as a personal injury or sick-
ness benefit or a benefit providing in-
demnification of an economic loss in-
curred upon the occurrence of the 
event insured against, 
‘‘(III) as a refund of a previously 
paid premium (less cost of insurance 
charges whether or not actually im-
posed) under an insurance contract 
(other than a life insurance contract) 
due to cancellation or termination of 
the contract, decrease in risk exposure 
during the effective period of the con-
tract, or arising from the correction of 
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a posting or similar error with regard 
to the premium for the contract, 
‘‘(IV) as a policyholder dividend 
(other than a termination dividend) 
provided that the dividend relates to 
an insurance contract under which the 
only benefits payable are described in 
subclause (II), or 
‘‘(V) as a return of an advance 
premium or premium deposit for an 
insurance contract for which the pre-
mium is payable at least annually if 
the amount of the advance premium 
or premium deposit does not exceed 
the next annual premium that will be 
payable under the contract.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to payments made after the date 
of the enactment of this Act. 
Æ 
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