### Question
How is the "life insurance reserves" defined?


### Answer
The term **life insurance reserves** is defined in *26 U.S.C. § 816* as follows -

> amounts—


(A) which are computed or estimated on the basis of recognized mortality or morbidity tables and assumed rates of interest, and


(B) which are set aside to mature or liquidate, either by payment or reinsurance, future unaccrued claims arising from life insurance, annuity, and noncancellable accident and health insurance contracts (including life insurance or annuity contracts combined with noncancellable accident and health insurance) involving, at the time with respect to which the reserve is computed, life, accident, or health contingencies

#### Citation:
  - *26 U.S.C. § 816*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter L-Insurance Companies > PART I-LIFE INSURANCE COMPANIES > Subpart E-Definitions and Special Rules**

