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131 STAT. 2145 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(B) VARIABLE CONTRACTS.—For purposes of this part (other than section 816), the amount of the life insurance reserves for a variable contract shall be equal to the sum of— ‘‘(i) the greater of— ‘‘(I) the net surrender value of such contract, or ‘‘(II) the portion of the reserve that is sepa- rately accounted for under section 817, plus ‘‘(ii) 92.81 percent of the excess (if any) of the reserve determined under paragraph (2) over the amount in clause (i). ‘‘(C) STATUTORY CAP.—In no event shall the reserves determined under subparagraphs (A) or (B) for any contract as of any time exceed the amount which would be taken into account with respect to such contract as of such time in determining statutory reserves (as defined in paragraph (4)). ‘‘(D) NO DOUBLE COUNTING.—In no event shall any amount or item be taken into account more than once in determining any reserve under this subchapter. ‘‘(2) AMOUNT OF RESERVE.—The amount of the reserve determined under this paragraph with respect to any contract shall be determined by using the tax reserve method applicable to such contract.’’. (D) by striking ‘‘(other than a qualified long-term care insurance contract, as defined in section 7702B(b)), a 2- year full preliminary term method’’ in paragraph (3)(A)(iii) and inserting ‘‘, the reserve method prescribed by the National Association of Insurance Commissioners which covers such contract as of the date the reserve is deter- mined’’, (E) by striking ‘‘(as of the date of issuance)’’ in para- graph (3)(A)(iv)(I) and inserting ‘‘(as of the date the reserve is determined)’’, (F) by striking ‘‘as of the date of the issuance of’’ in paragraph (3)(A)(iv)(II) and inserting ‘‘as of the date the reserve is determined for’’, (G) by striking ‘‘in effect on the date of the issuance of the contract’’ in paragraph (3)(B)(i) and inserting ‘‘applicable to the contract and in effect as of the date the reserve is determined’’, and (H) by striking ‘‘in effect on the date of the issuance of the contract’’ in paragraph (3)(B)(ii) and inserting ‘‘applicable to the contract and in effect as of the date the reserve is determined’’. (3) SPECIAL RULES.—Section 807(e) is amended— (A) by striking paragraphs (2) and (5), (B) by redesignating paragraphs (3), (4), (6), and (7) as paragraphs (2), (3), (4), and (5), respectively, (C) by amending paragraph (2) (as so redesignated) to read as follows: ‘‘(2) QUALIFIED SUPPLEMENTAL BENEFITS.— ‘‘(A) QUALIFIED SUPPLEMENTAL BENEFITS TREATED SEPARATELY.—For purposes of this part, the amount of the life insurance reserve for any qualified supplemental 26 USC 807. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00093 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS