### Question
How does the law define premium adjustment?


### Answer
Under *26 U.S.C. § 808*, **premium adjustment** is defined as:

> any reduction in the premium under an insurance or annuity contract which (but for the reduction) would have been required to be paid under the contract

#### Citation:
  - *26 U.S.C. § 808*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter L-Insurance Companies > PART I-LIFE INSURANCE COMPANIES > Subpart C-Life Insurance Deductions**

