• The ... company is to determine for itself which of its plans are to be treated as term insurance and which as permanent.
• The original instructions gave as a suggested definition of term insurance "that it is any policy with a premium rate less than 90% of the no profits rate for Ordinary Life...

1949 - SOA - Report of the Committee on Mortality Under Ordinary Insurances and Annuities, Society of Actuaries - 12p

The 818(c) election is another issue that is being looked at by the Service.

• In the Hutton ruling, the Service specifically took a caveat indicating that they were saying nothing with respect to this issue.
• One question that was discussed briefly was what was the plan of insurance?
  • How do you know whether you have a permanent policy that qualifies for $21 per thousand,
  • or a term policy that qualifies for $5,
  • or perhaps some that qualifies for nothing.
• That is an unanswered question."

-- Wiliam B. Harman, JR

1981 - SOA - Universal Life, Society of Actuaries - 16p