### Question
What is the definition of net premiums?


### Answer
The definition of **net premiums** is as follows in *26 U.S.C. § 72*:

> the amount of premiums paid under the contract reduced by any policyholder dividends

#### Citation:
  - *26 U.S.C. § 72*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART II-ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME**

