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131 STAT. 2152 PUBLIC LAW 115–97—DEC. 22, 2017 partnership, trust, or other entity that holds an interest in the life insurance contract.’’. (b) CONFORMING AMENDMENT.—Paragraph (1) of section 101(a) is amended by striking ‘‘paragraph (2)’’ and inserting ‘‘paragraphs (2) and (3)’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to transfers after December 31, 2017. SEC. 13523. MODIFICATION OF DISCOUNTING RULES FOR PROPERTY AND CASUALTY INSURANCE COMPANIES. (a) MODIFICATION OF RATE OF INTEREST USED TO DISCOUNT UNPAID LOSSES.—Paragraph (2) of section 846(c) is amended to read as follows: ‘‘(2) DETERMINATION OF ANNUAL RATE.—The annual rate determined by the Secretary under this paragraph for any calendar year shall be a rate determined on the basis of the corporate bond yield curve (as defined in section 430(h)(2)(D)(i), determined by substituting ‘60-month period’ for ‘24-month period’ therein).’’. (b) MODIFICATION OF COMPUTATIONAL RULES FOR LOSS PAY- MENT PATTERNS.—Section 846(d)(3) is amended by striking subpara- graphs (B) through (G) and inserting the following new subpara- graph: ‘‘(B) TREATMENT OF CERTAIN LOSSES.— ‘‘(i) 3-YEAR LOSS PAYMENT PATTERN.—In the case of any line of business not described in subparagraph (A)(ii), losses paid after the 1st year following the accident year shall be treated as paid equally in the 2nd and 3rd year following the accident year. ‘‘(ii) 10-YEAR LOSS PAYMENT PATTERN.— ‘‘(I) IN GENERAL.—The period taken into account under subparagraph (A)(ii) shall be extended to the extent required under subclause (II). ‘‘(II) COMPUTATION OF EXTENSION.—The amount of losses which would have been treated as paid in the 10th year after the accident year shall be treated as paid in such 10th year and each subsequent year in an amount equal to the amount of the average of the losses treated as paid in the 7th, 8th, and 9th years after the accident year (or, if lesser, the portion of the unpaid losses not theretofore taken into account). To the extent such unpaid losses have not been treated as paid before the 24th year after the accident year, they shall be treated as paid in such 24th year.’’. (c) REPEAL OF HISTORICAL PAYMENT PATTERN ELECTION.—Sec- tion 846, as amended by this Act, is amended by striking subsection (e) and by redesignating subsections (f) and (g) as subsections (e) and (f), respectively. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. (e) TRANSITIONAL RULE.—For the first taxable year beginning after December 31, 2017— (1) the unpaid losses and the expenses unpaid (as defined in paragraphs (5)(B) and (6) of section 832(b) of the Internal 26 USC 846 note. 26 USC 846 note. 26 USC 101 note. 26 USC 101. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00100 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS