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TITLE 26-INTERNAL REVENUE CODE in the subsection catchline, and "accident and health insurance contracts (other than those to which para- graph (5) applies) and group life insurance contracts" for "group life insurance and group accident and health insurance contracts" in the text. Subsec. (f)(2). Pub. L. 87-858, § 3(c), substituted "(d)(3)", "(d)(6)" and "(d)(5)" for "(d)(6)". "(d)(5)" and "(d)(3)", respectively. 1961-Subsec. (d)(l1). Pub. L. 87-59, §2(a), autho- rized the deduction of certain mutualization distribu- tions made in 1960 and 1961. Subsec. (g)(3). Pub. L. 87-59, § 2(b), included within its provisions certain mutualization distributions made in 1960 and 1961. EFFECTIVE DATE OF 1976 AMENDMENT Section 1508(b) of Pub. L. 94-455 provided that: "The amendments made by subsection (a) [amending subsec. (d)(5) of this section] shall apply to taxable years beginning after December 31, 1957". Amendment of subsecs. (a), (b), (d), (e), (g) by sec- tion 1901 of Pub. L. 94-455 effective for taxable years ending Dec. 31, 1976. see section 1901(d) of Pub. L. 94- 455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment of subsec. (e)(3) by section 201(a)(2)(C) of Pub. L. 91-172 applicable to taxable years beginning after Dec. 31, 1969, see section 201(g) of Pub. L. 91- 172, set out as an Effective Date of 1969 Amendment note under section 170 of this title. Amendment of subsec. (e)(5) by section 907(c)(2)(B) of Pub. L. 91-172 applicable with respect to losses in- curred in taxable year beginning after Dec. 31, 1962, but not affecting any tax liability for any taxable year beginning before Jan. 1, 1967, see section 907(d) of Pub. L. 91-172, set out as an Effective Date of 1969 Amendment note under section 805 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-272 applicable to divi- dends received in taxable years ending after Dec. 31, 1963, see section 214(c) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 243 of this title. Section 228(d) of Pub. L. 88-272 provided that: "The amendment made by subsection (a) [to this section] shall apply to taxable years beginning after December 31, 1961. The amendment made by subsection (c) [to section 832 of this title] shall apply to taxable years beginning after December 31, 1953, and ending after August 16, 1954." EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87-858 applicable with re- spect to taxable years beginning after Dec. 31, 1961, see section 3Wf) of Pub. L. 87-858, set out as an Effec- tive Date of 1962 Amendment note under section 801 of this title. Section 3(c) of Pub. L. 87-790 provided that: "The amendments made by this section [to subsec. (d)(6) of this section and to section 815(c)(2)(C) of this title] shall apply to taxable years beginning after December 31, 1962." EFFECTIVE DATE OF 1961 AMENDMENT Section 2(c) of Pub. L. 87-59 provided that: "The amendments made by subsections (a) and (b) [to sub- secs. (d)(11) and (g)(3) of this section] shall apply to taxable years beginning after December 31, 1959." EFFECTIVE DATE Section applicable only with respect to taxable years beginning after Dec. 31, 1957, see section 4 of Pub. L. 86-69, set out as an Effective Date note under section 801 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section Is referred to in sections 243, 801, 802, 810, 811, 812, 815, 819, 953, 1561, 1564 of this title. § 810. Rules for certain reserves (a) Adjustment for decrease If the sum of the items described in subsec- tion (c) as of the beginning of the taxable year exceeds the sum of such items as of the close of the taxable year (reduced by the amount of in- vestment yield not included in gain or loss from operations for the taxable year by reason of section 809(a)(1)), the excess shall be taken into account as a net decrease referred to in section 809(c)(2). (b) Adjustment for increase If the sum of the items described in subsec- tion (c) as of the close of the taxable year (re- duced by the amount of investment yield not included in gain or loss from operations for the taxable year by reason of section 809(a)(1)) ex- ceeds the sum of such items as of the beginning of the taxable year, the excess shall be taken into account as a net increase referred to in sec- tion 809(d)(2). (c) Items taken into account The items referred to in subsections (a) and (b) are as follows: (1) The life insurance reserves (as defined in section 801(b)). (2) The unearned premiums and unpaid losses included in total reserves under section 801(c)(2). (3) The amounts (discounted at the rates of interest assumed by the company) necessary to satisfy the obligations under insurance or annuity contracts (including contracts supple- mentary thereto), but only if such obligatins do not involve (at the time with respect to which the computation is made under this paragraph) life, health, or accident contin- gencies. (4) Dividend accumulations, and other amounts, held at interest in connection with insurance or annuity contracts (including contracts supplementary thereto). (5) Premiums received in advance, and li- abilities for premium deposit funds. (6) Special contingency reserves under con- tracts of group term life insurance or group health and accident insurance which are es- tablished and maintained for the provision of insurance on retired lives, for premium stabi- lization, or for a combination thereof. In applying this subsection, the same item shall be counted only once. (d) Adjustment for change in computing reserves (1) In general If the basis for determining any item re- ferred to in subsection (c) as of the close of any taxable year differs from the basis for such determination as of the close of the pre- ceding taxable year, then so much of the dif- ference between- (A) the amount of the item at the close of the taxable year, computed on the new basis, and (B) the amount of the item at the close of the taxable year, computed on the old basis, as is attributable to contracts issued before § 810 Page 506