qualified nonguaranteed contract

Defined in 1 place of the United States Code.

For purposes of this paragraph, the term “qualified nonguaranteed contract” means any insurance contract (including a reasonable premium stabilization reserve held thereunder) if—

(I) there is no guarantee of a renewal of such contract, and

(II) other than insurance protection, the only payments to which the employer or employees are entitled are experience rated refunds or policy dividends which are not guaranteed and which are determined by factors other than the amount of welfare benefits paid to (or on behalf of) the employees of the employer or their beneficiaries.

Source

1994–present 26 U.S.C. § 419Internal Revenue Code · Treatment of funded welfare benefit plans · for purposes of this section