### Question
How is the term applicable interest rate defined?


### Answer
The term **applicable interest rate** is defined in *26 U.S.C. § 832* as the following:

> the annual rate determined under 846(c)(2) for the calendar year in which the premiums are received

#### Citation:
  - *26 U.S.C. § 832*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter L-Insurance Companies > PART II-OTHER INSURANCE COMPANIES**

