### Question
How does NORMAL TAXES AND SURTAXES define CARVM?


### Answer
Under *26 U.S.C. § 807*, **CARVM** is defined as:

> the Commissioners’ Annuities Reserve Valuation Method prescribed by the National Association of Insurance Commissioners which is in effect on the date of the issuance of the contract

#### 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**

