---
kind: "section"
citation: "26 U.S.C. § 803"
title: "26"
title_heading: "Internal Revenue Code"
number: "803"
heading: "Life insurance gross income"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/803"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter L — Insurance Companies"
  - "Part I — Life Insurance Companies"
  - "Subpart B — Life Insurance Gross Income"
---

# §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](/usc/26/414.md?p=z-4-B), 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)](/usc/26/807.md?p=a) to be taken into account under this paragraph.
  - (3) **Other amounts—** All amounts not includible under paragraph [(1)](#a-1) or [(2)](#a-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)](#a-1-A), the term “gross amount of premiums and other consideration” includes—
    - (A) advance premiums,
    - (B) deposits,
    - (C) fees,
    - (D) assessments,
    - (E) consideration in respect of assuming liabilities under [contracts](/usc/26/101.md?p=f-3-A) not issued by the [taxpayer](/usc/26/1313.md?p=b), and
    - (F) the amount of [policyholder](/usc/26/812.md?p=b) [dividends](/usc/26/316.md?p=a) reimbursable to the [taxpayer](/usc/26/1313.md?p=b) by a reinsurer in respect of reinsured policies,

    on insurance and [annuity contracts](/usc/26/414.md?p=z-4-B).

  - (2) **Policyholder dividends excluded from return premiums—** For purposes of [subsection (a)(1)(B)](#a-1-B)—
    - (A) **In general—** Except as provided in [subparagraph (B)](#b-2-B), the term “return premiums” does not include any [policyholder](/usc/26/812.md?p=b) [dividends](/usc/26/316.md?p=a).
    - (B) **Exception for indemnity reinsurance—** [Subparagraph (A)](#b-2-A) shall not apply to amounts of premiums or other consideration returned to another [life insurance company](/usc/26/816.md?p=a) in respect of indemnity reinsurance.

## Source credit

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

## Notes

### Editorial Notes

### Prior Provisions

A prior section 803, acts Aug. 16, 1954, ch. 736, 68A Stat. 256; Mar. 13, 1956, ch. 83, § 2, 70 Stat. 39, related to income and deductions in the case of life insurance companies, prior to the general revision of this part by Pub. L. 86–69, § 2(a), June 25, 1959, 73 Stat. 112.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98–369, set out as a note under section 801 of this title.