[Code of Federal Regulations]
[Title 26, Volume 15]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR46.4371-2]

[Page 46]
 
                       TITLE 26--INTERNAL REVENUE
 
                               (Continued)
 
PART 46--EXCISE TAX ON POLICIES ISSUED BY FOREIGN INSURERS AND OBLIGATIONS NOT IN REGISTERED FORM--Table of Contents
 
          Subpart B--Tax on Policies Issued by Foreign Insurers
 
Sec. 46.4371-2  Imposition of tax on policies issued by foreign insurers; scope of tax.

    (a) Certain insurance policies, and indemnity, fidelity, or surety 
bonds. Section 4371(1) imposes a tax upon each policy of insurance 
(other than those referred to in paragraph (b) of this section), upon 
each indemnity, fidelity, or surety bond, or upon each certificate, 
binder, covering note, receipt, memorandum, cablegram, letter, or other 
instrument by whatever name called, whereby a contract of insurance or 
an obligation in the nature of an indemnity, fidelity, or surety bond is 
made, continued, or renewed, if issued:
    (1) By a nonresident alien individual, a foreign partnership, or a 
foreign corporation, as insurer (unless the policy or other instrument 
is signed or countersigned by an officer or agent of the insurer in a 
State, Territory, or the District of Columbia in which the insurer is 
authorized to do business); and either
    (2) To or for, or in the name of, a domestic corporation, domestic 
partnership, or an individual resident of the United States, against or 
with respect to hazards, risks, losses, or liabilities wholly or partly 
within the United States; or
    (3) To or for, or in the name of, a foreign corporation, foreign 
partnership, or nonresident individual, engaged in a trade or business 
within the United States with respect to hazards, risks, or liabilities 
wholly within the United States.

For definition of the term ``indemnity bond,'' see section 4372(c).
    (b) Life insurance, sickness, and accident policies, and annuity 
contracts. Unless the insurer is subject to tax under section 819, 
section 4371(2) imposes a tax upon each policy of insurance or annuity 
contract, or upon each certificate, binder, covering note, receipt, 
memorandum, cablegram, letter, or other instrument by whatever name 
called, whereby a contract of insurance or an annuity contract is made, 
continued, or renewed, if issued:
    (1) By a nonresident alien individual, a foreign partnership, or a 
foreign corporation, as insurer (unless the policy or other instrument 
is signed or countersigned by an officer or agent of the insurer in a 
State, Territory, or the District of Columbia in which such insurer is 
authorized to do business); and
    (2) To any person with respect to the life or hazards to the person 
of a citizen or resident of the United States.
    (c) Reinsurance. Section 4371(3) imposes a tax upon each policy of 
reinsurance, certificate, binder, covering note, receipt, memorandum, 
cablegram, letter, or other instrument by whatever name called, whereby 
a contract of reinsurance is made, continued, or renewed, if issued:
    (1) By a nonresident alien individual, a foreign partnership, or a 
foreign corporation, as reinsurer (unless the policy or other instrument 
is signed or countersigned by an officer or agent of the reinsurer in a 
State, Territory, or the District of Columbia in which such reinsurer is 
authorized to do business); and
    (2) To any person against, or with respect to, any of the hazards, 
risks, losses, or liabilities covered by contracts of the type described 
in section 4371 (1) or (2).
    (d) Exempt indemnity bonds. The tax imposed by section 4371 does not 
apply to any indemnity bond described in section 4373(2).