26 USC § 803 - Life insurance gross income

---
identifier: "/us/usc/t26/s803"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 803 - Life insurance gross income"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "803"
section_name: "Life insurance gross income"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "L"
subchapter_name: "Insurance Companies"
part_number: "I"
part_name: "LIFE INSURANCE COMPANIES"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 98–369, div. A, title II, § 211(a), July 18, 1984, 98 Stat. 721.)"
---


# § 803. Life insurance gross income

**(a)** **In general** For purposes of this part, the term “life insurance gross income” means the sum of the following amounts:

**(1)** **Premiums**

**(A)** The gross amount of premiums and other consideration on insurance and annuity contracts, less

**(B)** return premiums, and premiums and other consideration arising out of indemnity reinsurance.

**(2)** **Decreases in certain reserves** Each net decrease in reserves which is required by section 807(a) to be taken into account under this paragraph.

**(3)** **Other amounts** All amounts not includible under paragraph (1) or (2) which under this subtitle are includible in gross income.

**(b)** **Special rules for premiums**

**(1)** **Certain items included** For purposes of subsection (a)(1)(A), the term “gross amount of premiums and other consideration” includes—

on insurance and annuity contracts.

**(A)** advance premiums,

**(B)** deposits,

**(C)** fees,

**(D)** assessments,

**(E)** consideration in respect of assuming liabilities under contracts not issued by the taxpayer, and

**(F)** the amount of policyholder dividends reimbursable to the taxpayer by a reinsurer in respect of reinsured policies,

**(2)** **Policyholder dividends excluded from return premiums** For purposes of subsection (a)(1)(B)—

**(A)** **In general** Except as provided in subparagraph (B), the term “return premiums” does not include any policyholder dividends.

**(B)** **Exception for indemnity reinsurance** Subparagraph (A) shall not apply to amounts of premiums or other consideration returned to another life insurance company in respect of indemnity reinsurance.

---

**Source Credit**: (Added Pub. L. 98–369, div. A, title II, § 211(a), July 18, 1984, 98 Stat. 721.)

## Editorial Notes

### Prior Provisions

A prior section 803, acts , ; , , related to income and deductions in the case of life insurance companies, prior to the general revision of this part by , , .

## Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable to taxable years beginning after , see , set out as a note under .