---
kind: "section"
citation: "26 C.F.R. § 46.4371-2"
title: "26"
number: "46.4371-2"
heading: "Imposition of tax on policies issued by foreign insurers; scope of tax."
url: "https://uscodex.org/cfr/26/46.4371-2"
---

# §46.4371-2. Imposition of tax on policies issued by foreign insurers; scope of tax.

- (a) **Certain insurance policies, and indemnity, fidelity, or surety bonds.** [Section 4371(1)](/cfr/26/4371.md?p=1) imposes a tax upon each policy of insurance (other than those referred to in [paragraph (b)](#b) of this section), upon each indemnity, fidelity, or surety bond, or upon each certificate, binder, covering note, receipt, memorandum, cablegram, letter, or other instrument by whatever name called, whereby a contract of insurance or an obligation in the nature of an indemnity, fidelity, or surety bond is made, continued, or renewed, if issued:
  - (1) By a nonresident alien individual, a foreign partnership, or a foreign corporation, as insurer (unless the policy or other instrument is signed or countersigned by an officer or agent of the insurer in a State, Territory, or the District of Columbia in which the insurer is authorized to do business); and either
  - (2) To or for, or in the name of, a domestic corporation, domestic partnership, or an individual resident of the United States, against or with respect to hazards, risks, losses, or liabilities wholly or partly within the United States; or
  - (3) To or for, or in the name of, a foreign corporation, foreign partnership, or nonresident individual, engaged in a trade or business within the United States with respect to hazards, risks, or liabilities wholly within the United States.
- (b) **Life insurance, sickness, and accident policies, and annuity contracts.** Unless the insurer is subject to tax under [section 819](/cfr/26/819.md), [section 4371(2)](/cfr/26/4371.md?p=2) imposes a tax upon each policy of insurance or annuity contract, or upon each certificate, binder, covering note, receipt, memorandum, cablegram, letter, or other instrument by whatever name called, whereby a contract of insurance or an annuity contract is made, continued, or renewed, if issued:
  - (1) By a nonresident alien individual, a foreign partnership, or a foreign corporation, as insurer (unless the policy or other instrument is signed or countersigned by an officer or agent of the insurer in a State, Territory, or the District of Columbia in which such insurer is authorized to do business); and
  - (2) To any person with respect to the life or hazards to the person of a citizen or resident of the United States.
- (c) **Reinsurance.** [Section 4371(3)](/cfr/26/4371.md?p=3) imposes a tax upon each policy of reinsurance, certificate, binder, covering note, receipt, memorandum, cablegram, letter, or other instrument by whatever name called, whereby a contract of reinsurance is made, continued, or renewed, if issued:
  - (1) By a nonresident alien individual, a foreign partnership, or a foreign corporation, as reinsurer (unless the policy or other instrument is signed or countersigned by an officer or agent of the reinsurer in a State, Territory, or the District of Columbia in which such reinsurer is authorized to do business); and
  - (2) To any person against, or with respect to, any of the hazards, risks, losses, or liabilities covered by contracts of the type described in section [4371 (1)](/cfr/26/4371.md?p=1) or [(2)](/cfr/26/4371.md?p=2).
- (d) **Exempt indemnity bonds.** The tax imposed by [section 4371](/cfr/26/4371.md) does not apply to any indemnity bond described in [section 4373(2)](/cfr/26/4373.md?p=2).

## Notes

### Authority

Authority: 26 U.S.C. 7805.

### Source

Source: T.D. 8497, 25 FR 6461, May 6, 1960, unless otherwise noted.