Section 24305 Of Article 2. Exclusions From California Revenue And Taxation Code >> Division 2. >> Part 11. >> Chapter 6. >> Article 2.
24305
. (a) Except as provided in subdivisions (b) and (c), amounts
received under life insurance policies and contracts paid by reason
of the death of the insured but if such amounts are held by the
insurer under an agreement to pay interest thereon, the interest
payments shall be included in gross income.
(b) Proceeds of flexible premium contracts payable by reason of
death shall be excluded from gross income only in accordance with the
provisions of Section 101(f) of the Internal Revenue Code.
(c) (1) In the case of an employer-owned life insurance contract,
any amount received by reason of death of an insured shall be
excluded from gross income only in accordance with the provisions of
Section 101(j) of the Internal Revenue Code.
(2) Section 101(j) of the Internal Revenue Code, relating to
treatment of certain employer-owned life insurance contracts, shall
apply in accordance with the provisions of Section 863(d) of the
Pension Protection Act of 2006 (Public Law 109-280), relating to
effective dates, except that the phrase "January 1, 2010," shall be
substituted for "the date of the enactment of this Act" contained
therein.