Guaranteed Renewable Life, Health, and Accident Insurance Policy [Internal Revenue] Law and Legal Definition

Pursuant to 26 CFR 1.801-3 (d) [Title 26 Internal Revenue; Chapter I Internal Revenue Service, Department of the Treasury; Subchapter A Income Tax; Part 1 Income Taxes; Normal Taxes and Surtaxes; Insurance Companies; Life Insurance Companies; Definition; Tax Imposed], the term Guaranteed Renewable Life, Health, and Accident Insurance Policy means “a health and accident contract, or a health and accident contract combined with a life insurance or annuity contract, which is not cancelable by the company but under which the company reserves the right to adjust premium rates by classes in accordance with its experience under the type of policy involved, and with respect to which a reserve in addition to the unearned premiums (as defined in paragraph (e) of this section) must be carried to cover that obligation. Section 801(e) [26 USCS § 801(e)] provides that such policies shall be treated in the same manner as noncancellable life, health, and accident insurance policies. For example, the age termination date requirements applicable to noncancellable health and accident insurance policies shall also apply to guaranteed renewable life, health, and accident insurance policies. See paragraph (c) of this section.”