### Question
How is the term qualified foreign contract defined?


### Answer
The term **qualified foreign contract** is defined in *26 U.S.C. § 807* as the following:

> any contract issued by a foreign life insurance branch (which has its principal place of business in a foreign country) of a domestic life insurance company if—


(i) such contract is issued on the life or health of a resident of such country,


(ii) such domestic life insurance company was required by such foreign country (as of the time it began operations in such country) to operate in such country through a branch, and


(iii) such foreign country is not contiguous to the United States

#### Citation:
  - *26 U.S.C. § 807*
  - 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**

