Modern Life & Acci. Ins. Co. v. Commissioner
United States Tax Court
Petitioner is in the business of issuing cancelable and noncancelable accident and health insurance policies on the assessment plan in Illinois. Its members have a common equitable ownership of assets; its policyholders have the right to be members to the exclusion of others and to choose management; its sole business purpose is to supply insurance at cost to its members; and its members have a right to premiums in excess of amounts to cover losses and expenses.
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Petitioner is in the business of issuing cancelable and noncancelable accident and health insurance policies on the assessment plan in Illinois. Its members have a common equitable ownership of assets; its policyholders have the right to be members to the exclusion of others and to choose management; its sole business purpose is to supply insurance at cost to its members; and its members have a right to premiums in excess of amounts to cover losses and expenses. Held, that petitioner is taxable as a mutual insurance company under sec. 821, I.R.C. 1954, and not as an insurance company other…
1Opinion of the Court
OPINION
Petitioner was incorporated in 1923 to operate as an insurer under an assessment plan in accordance with an Illinois statute enacted in 1893. During the years 1959 through 1962 it operated as an Assessment Accident and Health Company under article XXI of the Illinois Insurance Code of 1937.3 Petitioner contends that it cannot be taxed as a mutual company under section 821 of the Internal Revenue Code and related sections because its surplus fund is such that it can never be converted into a domestic mutual company under article III of the Illinois Insurance Code of 1937 4 due to the…
2Cases cited10 opinions
- Local Finance Corp. v. CommissionerUnited States Tax Court · 1967
- Theodore v. CommissionerUnited States Tax Court · 1962
- Order of R. Employees v. CommissionerUnited States Tax Court · 1943
- Holyoke Mut. Fire Ins. Co. v. CommissionerUnited States Tax Court · 1957
- Mutual Fire, Marine & Inland Ins. Co. v. CommissionerUnited States Tax Court · 1947
5 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Modern Life & Accident Insurance Company v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1970
- California State Automobile Ass'n v. Franchise Tax BoardCalifornia Court of Appeal · 1987
- Oklahoma State Union of Farmers Educational & Cooperative Union v. CommissionerUnited States Tax Court · 1977
- Modern Life & Acci. Ins. Co. v. CommissionerUnited States Tax Court · 1968
- Oklahoma State Union of Farmers Educational & Cooperative Union v. CommissionerUnited States Tax Court · 1977
2 more not listed; retrieve them via the Exa API.