tax reserve method
(3) Tax reserve method For purposes of this subsection— (A) In general The term “tax reserve method” means— (i) Life insurance contracts The CRVM in the case of a contract covered by the CRVM. (ii) Annuity contracts The CARVM in the case of a contract covered by the CARVM. (iii) Noncancellable accident and health insurance contracts In the case of any noncancellable accident and health insurance contract, the reserve method prescribed by the National Association of Insurance Commissioners which covers such contract as of the date the reserve is determined. (iv) Other contracts In the case of any contract not described in clause (i), (ii), or (iii)— (I) the reserve method prescribed by the National Association of Insurance Commissioners which covers such contract (as of the date the reserve is determined), or (II) if no reserve method has been prescribed by the National Association of Insurance Commissioners which covers such contract, a reserve method which is consistent with the reserve method required under clause (i), (ii), or (iii) or under subclause (I) of this clause as of the date the reserve is determined for such contract (whichever is most appropriate). (B) Definition of CRVM and CARVM For purposes of this paragraph— (i) CRVM The term “CRVM” means the Commissioners’ Reserve Valuation Method prescribed by the National Association of Insurance Commissioners which is applicable to the contract and in effect as of the date the reserve is determined. (ii) CARVM The term “CARVM” means the Commissioners’ Annuities Reserve Valuation Method prescribed by the National Association of Insurance Commissioners which is applicable to the contract and in effect as of the date the reserve is determined. (C) No additional reserve deduction allowed for deficiency reserves Nothing in any reserve method described under this paragraph shall permit any increase in the reserve because the net premium (computed on the basis of assumptions required under this subsection) exceeds the actual premiums or other consideration charged for the benefit.