Reg. § 1.816-1 Life insurance reserves.
(a) Definition of life insurance reserves Except as provided in section , a reserve that meets the requirements of section and (2) will not be disqualified as a life insurance reserve solely because the method used to compute the reserve takes into account other factors, provided that the method used to compute the reserve is a tax reserve method as defined in section and that such reserve is not an asset adequacy reserve as described in .
(b) Applicability date The section applies to taxable years beginning after October 13, 2020.
However, a taxpayer may choose to apply the rules of this section for a taxable year beginning after December 31, 2017, the effective date of the revision of section by Public Law 115-97, and on or before October 13, 2020, provided the taxpayer consistently applies the rules of this section to that taxable year and all subsequent taxable years. See section .
[T.D. 9911, 85 FR 64393, Oct. 13, 2020]