A bill to provide special temporary rules for taxing the income of life insurance companies.

Amends the Internal Revenue Code to set forth special temporary rules for the taxation of life insurance companies for 1982 and 1983.

Revises provisions relating to policies reinsured under modified coinsurance contracts. Specifies that prescribed policy and other contract liability requirements shall not include interest payable after enactment of this Act by a reinsured to a reinsurer in connection with a coinsurance contract.

Revises the method of computing the tax deductions for: (1) dividends to policyholders; (2) certain nonparticipating contracts; and (3) certain accident, health insurance, and group life insurance plans.

Revises the method of determining adjusted life insurance reserves.

Revises the method of computing the policyholder's share of investment yield, life insurance company taxable income, and net capital gain for companies filing consolidated returns. Specifies that the above method shall not apply to certain contract computations in effect before 1982.

States that the determination for taxable years before 1982 as to whether a contract is a coinsurance contract shall be made solely by reference to the terms of the contract.