General Life Ins. v. Commissioner

The taxpayer is not a life insurance company within the meaning of Section 201 of the Revenue Act of 1936. In order to qualify as a life insurance company under the statute, it is not enough that life insurance contracts are issued; it is essential that the company maintain reserve funds against such contracts. The Tax Court found that the taxpayer’s mortuary fund was not actuarially computed according to recognized tables of mortality, and held that it was not taxable as a life insurance company. See: First Nat. Benefit Soc. v. Stuart, 9 Cir., 134 F.2d 438; National Protective Ins. Co. v.…