National States Insurance Company v. Commissioner of Internal Revenue

ARNOLD, Circuit Judge.

The question presented is whether the taxpayer is a “life insurance company” within the meaning of Section 801(a) of the Internal Revenue Code, 26 U.S.C. § 801(a) (1982), so as to qualify for certain favorable tax treatment. This question depends, in turn, upon whether the taxpayer is issuing, in a sufficiently great proportion, policies that are “guaranteed renewable life, health, and accident insurance policies” as that term is defined in Treas.Reg. § 1.801-3(d), T.D. 7172, 26 C.F.R. § 1.801-3(d) (1984). Such policies (referred to by the parties as GRHA policies) are…