Internal Revenue Code x 4371 requires all of the following three elements for the foreign insurance excise tax to apply. They are: 1. A policy of insurance, 2. Insurance of a United States risk, and 3. Policy issued by a foreign insurer or reinsurer. Policy of Insurance - A policy of insurance may include a policy of reinsurance, an indemnity bond, or an annuity contract. Generally, a policy is the printed document issued by the insurer presented to the insured which contains the terms of the insurance contract. This document is sometimes referred to as a treaty. When the insurer transfers the same risks to another insurer, reinsurance has occurred and the second insurer is termed the reinsurer. Indemnity Bond - An indemnity bond is a contract under which the surety party promises to reimburse a third party, called the obligee, for losses it sustained as a result of the failure of the principal party, called the obligor, to perform under its contract with the obligee...
- ISBN10 1304113019
- ISBN13 9781304113016
- Publish Date 7 June 2013
- Publish Status Active
- Publish Country GB
- Imprint Lulu.com
- Format Paperback
- Pages 80
- Language English