### Question
How does the law define exempt insurance income?


### Answer
Under *26 U.S.C. § 953*, **exempt insurance income** is defined as:

> income derived by a qualifying insurance company which—


(i) is attributable to the issuing (or reinsuring) of an exempt contract by such company or a qualifying insurance company branch of such company, and


(ii) is treated as earned by such company or branch in its home country for purposes of such country's tax laws

#### Citation:
  - *26 U.S.C. § 953*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart F-Controlled Foreign Corporations**

