Court of Appeals for the Seventh Circuit July 18, 1997, 96-3499 (Indianapolis Life Insurance Company and Subsidiary v. United States)

EASTERBROOK, Circuit Judge.

Life insurance companies invest their premium income. Some of the earnings are held in reserve to pay the death benefits or annuities promised in the policies. Earnings in excess of the amounts needed for these purposes may be distributed to holders of whole life or “participating” policies as dividends.