PUBLIC LAW 100-647—NOV. 10,1988

102 STAT. 3451

 (B)	by striking out "28 percent" and inserting in lieu
thereof "31.6 percent", and
 (C)	bv adding at the end thereof the following new sen-
tence:   The preceding sentence shall apply only if the tax
determined under the preceding sentence is less than the
tax which would otherwise be imposed."
(3) Paragraph (2) of section 101 l(d) of the Reform Act is   26 USC 801
amended to read as follows:	note.
"(2) qualified ufe insurance company.—For purposes of
paragraph (1), the term "qualified life insurance company
means any life insurance company subject to tax under part I of
subchapter L of chapter 1 of the Internal Revenue Code of
1986."
(b)	amendments related to section 1012 of the reform act.—
(1)	Clause (iv) of section 1012(cX4XC) of the Reform Act is   26 USC 833 note.
amended to read as follows:
"(iv) dental benefit coverage provided by a Delta  Healthcare
Dental Plans Association organization through con-   professionals.
tracts with independent professional service providers
so long as the provision of such coverage is the prin-
cipal activity of such organization."
 (2)	Clause (ii) of section 1012(cX4XC) of the Reform Act is
amended by striking out "Association" and inserting in lieu
thereof "Plan".
 (3)	The Secretary of the Treasury or his delegate may pre~   26 USC 833 note.
scribe rules providing proper adjustments for taxpayers which
become subject to subchapter L of chapter 1 of the 1986 Code by
reason of the amendments made by section 1012 of the Reform
Act with respect to short taxable years which begin during 1987
by reason of section 843 of such Code.
(4XA) Paragraph (3) of section 501(m) of the 1986 Code is
amended by striking out "and" at the end of subparagraph (C),
by striking out the period at the end of subparagraph (D) and
inserting in lieu thereof ", and", and by adding at the end
thereof the following new subparagraph:
"(E) charitable gift annuities."
(B) Subsection (m) of section 501 of the 1986 Code is amended
by _(adding at the end thereof the following new paragraph:
"(5) charitable got annuity.—-For purposes of paragraph
(3XE), the term 'charitable gift annuity^5 means an annuity if—
"(A) a portion of the amount paid in connection with the
issuance of the annuity is allowable as a deduction under
section 170 or 2055, and
"(B) the annuity is described in section 514(cX5) (deter-
mined as if any amount paid in cash in connection with
such issuance were property)."
(c)	amendments related to section 1021 of the reform act.—   insurance.
(1XA) Subparagraph (C) of section 832(bX7) of the 1986 Code
(relating to special rules for determining premiums earned) is
amended by striking out "this part" and inserting in lieu
thereof "section 831(a)".
(B) The subparagraph heading for such subparagraph is
amended by striking out "nonlife insurance company and
inserting in lieu thereof "insurance company taxable under
section 831 (a)".
(2) Paragraph (7) of section 832(b) of the 1986 Code is amended
by adding at the end thereof the following new subparagraphs:

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