1. Exemption for premiums paid on non-cash-value property and casualty insurance from taxes to enforce reporting on certain foreign accounts (a) In general Section 1473(1) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph: (C) Exception for premiums paid on non-cash-value property and casualty insurance (i) In general Such term shall not include any premium paid for any insurance contract if— (I) such insurance contract does not have an aggregate cash value greater than zero, and (II) no portion of the reserves, unearned premiums, or unpaid losses, with respect to such contract are taken into account under paragraph (1) or (2) of section 816(a). (ii) Cash value The term cash value means any amount (determined without reduction for any charge or policy loan) that— (I) is payable under the contract to any person upon surrender, termination, cancellation, or withdrawal, or (II) can be borrowed by any person under, or with regard to, the contract (including by pledging as collateral). (iii) Exceptions Notwithstanding clause (ii), the term cash value shall not include any amount payable— (I) solely by reason of the death of an individual insured under a life insurance contract, (II) as a personal injury or sickness benefit or a benefit providing indemnification of an economic loss incurred upon the occurrence of the event insured against, (III) as a refund of a previously paid premium (less cost of insurance charges whether or not actually imposed) under an insurance contract (other than a life insurance contract) due to cancellation or termination of the contract, decrease in risk exposure during the effective period of the contract, or arising from the correction of a posting or similar error with regard to the premium for the contract, (IV) as a policyholder dividend (other than a termination dividend) provided that the dividend relates to an insurance contract under which the only benefits