26 USC 1035 - Certain exchanges of insurance policies

U.S Code last checked for updates: May 15, 2024

§ 1035.

Certain exchanges of insurance policies

(a)

General rules

No gain or loss shall be recognized on the exchange of—

(1)

a contract of life insurance for another contract of life insurance or for an endowment or annuity contract or for a qualified long-term care insurance contract;

(2)

a contract of endowment insurance (A) for another contract of endowment insurance which provides for regular payments beginning at a date not later than the date payments would have begun under the contract exchanged, or (B) for an annuity contract, or (C) for a qualified long-term care insurance contract;

(3)

an annuity contract for an annuity contract or for a qualified long-term care insurance contract; or

(4)

a qualified long-term care insurance contract for a qualified long-term care insurance contract.

(b)

Definitions

For the purpose of this section—

(1)

Endowment contract

(2)

Annuity contract

(3)

Life insurance contract

(c)

Exchanges involving foreign persons

(d)

Cross references

(1)

For rules relating to recognition of gain or loss where an exchange is not solely in kind, see subsections (b) and (c) of section 1031.

(2)

For rules relating to the basis of property acquired in an exchange described in subsection (a), see subsection (d) of section 1031.

(Aug. 16, 1954, ch. 736, 68A Stat. 309; Pub. L. 98–369, div. A, title II, §§ 211(b)(15), 224(a), July 18, 1984, 98 Stat. 756, 776; Pub. L. 99–514, title XVIII, § 1828, Oct. 22, 1986, 100 Stat. 2851; Pub. L. 105–34, title XI, § 1131(b)(1), Aug. 5, 1997, 111 Stat. 979; Pub. L. 109–280, title VIII, § 844(b), Aug. 17, 2006, 120 Stat. 1010; Pub. L. 115–141, div. U, title IV, § 401(a)(168), Mar. 23, 2018, 132 Stat. 1192.)

cite as: 26 USC 1035