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TITLE 26-INTERNAL REVENUE CODE income received by the attorney-in-fact from the reciprocal in such taxable year. (f) Surtax exemption denied Any increase in taxable income of a reciprocal attributable to the limitation provided in sub- section (b) shall be taxed without regard to the surtax exemption provided in section 821(a)(2). (g) Adjustment for refund If for any taxable year an attorney-in-fact is allowed a credit or refund for taxes paid with respect to which credit or refund to the recipro- cal resulted under subsection (e), the taxes of such reciprocal for such taxable year shall be properly adjusted under regulations prescribed by the Secretary. (h) Taxes of attorney.in-fact unaffected Nothing in this section shall increase or de- crease the taxes imposed by this chapter on the income of the attorney-in-fact. (Added Pub. L. 87-834, § 8(c), Oct. 16, 1962, 76 Stat. 996, and amended Pub. L. 94-455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) AMENMENTS 1976-Subsecs. (a), (b), (c)(2), (e), (g). Pub. L. 94-455 struck out "or his delegate" following "Secretary". EFFECTIVE DATE Section applicable with respect to taxable years be- ginning after Dec. 31, 1962, see section 8(h) of Pub. L. 87-834, set out as an Effective Date of 1962 Amend- ment note under section 821 of this title. PART III-OTHER INSURANCE COMPANIES Sec. 831. Tax on insurance companies (other than life or mutual), mutual marine insurance companies, and certain mutual fire or flood insurance com- panies. 832. Insurance company taxable income. AMENDMENTS 1962-Pub. L. 87-834, § 8(g)(4)(C), Oct. 16, 1962. 76 Stat. 999, substituted "and certain mutual fire or flood insurance companies" for "and mutual fire insurance companies issuing perpetual policies" in item 831. PART REFERRED TO IN OTHER SECTIONS This part is referred to in section 953 of this title. § 831. Tax on insurance companies (other than life or mutual), mutual marine insurance companies, and certain mutual fire or flood insurance com- panies (a) Imposition of tax Taxes computed as provided in section 11 shall be imposed for each taxable year on the taxable income of- (1) every insurance company (other than a life or mutual insurance company), (2) every mutual marine insurance compa- ny, and (3) every mutual fire or flood insurance company- (A) exclusively issuing perpetual policies, or (B) whose principal business is the issu- ance of policies for which the premium de- posits are the same, regardless of the length of the term for which the policies are writ- ten, if the unabsorbed portion of such pre- mium deposits not required for losses, ex- penses, or establishment of reserves is re- turned or credited to the policyholder on cancellation or expiration of the policy. (b) Election for multiple line company to be taxed on total income (1) In general Any mutual insurance company engaged in writing marine, fire, and casualty insurance which for any 5-year period beginning after December 31, 1941, and ending before Janu- ary 1, 1962, was subject to the tax imposed by section 831 (or the tax imposed by corre- sponding provisions of prior law) may elect, in such manner and at such time as the Secre- tary may by regulations prescribe, to be sub- ject to the tax imposed by section 831, wheth- er or not marine insurance is its predominant source of premium income. (2) Effect of election If an election is made under paragraph (1), the electing company shall (in lieu of being subject to the tax imposed by section 821) be subject to the tax imposed by this section for taxable years beginning after December 31, 1961, Such election shall not be revoked except with the consent of the Secretary. (c) Cross references (1) For alternative tax in case of capital gains, see sec. tion 1201(a). (2) For taxation of foreign corporations carrying on an insurance business within the United States, see section 842. (Aug. 16, 1954, ch. 736, 68A Stat. 264; Oct. 16, 1962, Pub. L. 87-834, § 8(e)(1), (f), (g)(4)(B), 76 Stat. 997-999; Nov. 13, 1966, Pub. L. 89-809, title I, § 104(i)(6), 80 Stat. 1562; Oct. 4, 1976, Pub. L. 94-455, title XIX. §§ 1901(a)(107), 1906(b)(13)(A), 90 Stat. 1782, 1834.) AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455, § 1901(a)(107), sub- stituted "on the taxable income" for "or the taxable income '. Subsec. Cb). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary" wherever appearing. 1966-Subsec. (b). Pub. L. 89-809, § 104i)(6)(A), struck out subsec. (b) which excepted foreign insur- ance companies other than life or mutual insurance companies, foreign mutual marine insurance compa- nies, and foreign mutual fire insurance companies not carrying on an insurance business within the United States and provided that they would be taxable as other foreign corporations and redesignated subsec. (c) as subsec. (b). Subsec. (c). Pub. L. 89-809, § 104(I)(6)(B), redesignat- ed subsec. (d) as subsec. (c) and, in subsec. (c) as ro re- designated, added item (2). Former subsec. (c) redesig- nated as subsec. (b). Subsec. Cd). Pub. L, 89-809, § 1040i)(6)(B), redesignat- ed subsec. (d) as subsec. (c). 1962-Pub. L. 87-834, § 8(g)(4)(B), substituted "and certain mutual fire or flood insurance companies" for "and mutual fire insurance companies issuing perpet- ual policies" in the section catchllne. Subsec. (a). Pub. L. 87-834, §8(e)(1), included flood insurance companies, and substituted provisions au- thorizing imposition of the tax on those companies whose principal business is the issuance of policies for which the premium deposits are the same, regardless of the length of the term for which the policies are written, if the unabsorbed portion of such premium Page 529