Title: 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.
Policy area: Taxation

Summary:
This bill amends the Internal Revenue Code to exempt premiums paid on non-cash-value property and casualty insurance policies from taxes to enforce reporting on certain foreign accounts.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 871 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 871

 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

                            February 6, 2017

Mr. Smith of Missouri (for himself, Mr. Larson of Connecticut, and Mr. 
Royce of California) 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXEMPTION FOR PREMIUMS PAID ON NON-CASH-VALUE PROPERTY AND 
              CASUALTY INSURANCE FROM TAXES TO ENFORCE REPORTING ON 
              CERTAIN FOREIGN ACCOUNTS.

    (a) In General.--Section 1473(1) of the Internal Revenue Code of 
1986 is amended by redesignating subparagraph (C) as subparagraph (D) 
and by inserting after subparagraph (B) the following new subparagraph:
                    ``(C) Exception for premiums paid on non-cash-value 
                property and casualty insurance.--
                            ``(i) In general.--Such term shall not 
                        include any premium paid for any insurance 
                        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 contract 
                                to any person upon surrender, 
                                termination, cancellation, or 
                                withdrawal, or
                                    ``(II) can be borrowed by any 
                                person under, or with regard to, the 
                                contract (including by pledging as 
                                collateral).
                            ``(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 
                                sickness benefit or a benefit providing 
                                indemnification of an economic loss 
                                incurred 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 
                                imposed) 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 
                                contract, or arising from the 
                                correction of 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 
                                premium 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.
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