### Question
Can you define what excess interest means?


### Answer
**Excess interest** is defined as the following in *26 U.S.C. § 808*:

> any amount in the nature of interest—


(A) paid or credited to a policyholder in his capacity as such, and


(B) in excess of interest determined at the prevailing State assumed rate for such 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**

