by this section shall apply to taxable years beginning after December 31, 2017. 3705. Repeal of special rule for distributions to shareholders from pre-1984 policyholders surplus account (a) In general Subpart D of part I of subchapter L is amended by striking section 815 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment Section 801 is amended by striking subsection (c). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. (d) Phased inclusion of remaining balance of policyholders surplus accounts In the case of any stock life insurance company which has a balance (determined as of the close of such company’s last taxable year beginning before January 1, 2018) in an existing policyholders surplus account (as defined in section 815 of the Internal Revenue Code of 1986, as in effect before its repeal), the tax imposed by section 801 of such Code for the first 8 taxable years beginning after December 31, 2017, shall be the amount which would be imposed by such section for such year on the sum of— (1) life insurance company taxable income for such year (within the meaning of such section 801 but not less than zero), plus (2) 1/8 of such balance. 3706. Modification of proration rules for property and casualty insurance companies (a) In general Section 832(b)(5)(B) is amended by striking 15 percent and inserting 26.25 percent . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2017. 3707. Modification of discounting rules for property and casualty insurance companies (a) Modification of rate of interest used to discount unpaid losses Paragraph (2) of section 846(c) is amended to read as follows: (2) Determination of annual rate The annual rate determined by the Secretary under this paragraph for any calendar year shall be a rate determined on the basis of the corporate bond yield curve (as defined in section