### Question
How is the term reportable policy sale defined?


### Answer
The term **reportable policy sale** is defined in *26 U.S.C. § 101* as the following:

> the acquisition of an interest in a life insurance contract, directly or indirectly, if the acquirer has no substantial family, business, or financial relationship with the insured apart from the acquirer's interest in such life insurance contract

#### Citation:
  - *26 U.S.C. § 101*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

