to such contract as of such time in determining foreign statement reserves (less any catastrophe, deficiency, equalization, or similar reserves). (5) Amount of reserve The amount of the reserve determined under this paragraph with respect to any contract shall be determined in the same manner as it would be determined if the qualifying insurance company or qualifying insurance company branch were subject to tax under subchapter L, except that in applying such subchapter— (A) the interest rate determined for the functional currency of the company or branch, and which, except as provided by the Secretary, is calculated in the same manner as the Federal mid-term rate under section 1274(d), shall be substituted for the applicable Federal interest rate, (B) the highest assumed interest rate permitted to be used in determining foreign statement reserves shall be substituted for the prevailing State assumed interest rate, and (C) tables for mortality and morbidity which reasonably reflect the current mortality and morbidity risks in the company's or branch's home country shall be substituted for the mortality and morbidity tables otherwise used for such subchapter. The Secretary may provide that the interest rate and mortality and morbidity tables of a qualifying insurance company may be used for 1 or more of its qualifying insurance company branches when appropriate. (6) Definitions For purposes of this section, any term used in this subsection which is also used in section 955(c) shall have the meaning given such term under section 955(c). 955. Definition of insurance income (a) Insurance income (1) In general For purposes of section 953(c), the term insurance income means the gross income which— (A) is attributable to the issuing (or reinsuring) of an insurance or annuity contract, and (B) is of a kind that would be subject to tax under subchapter L of this chapter if such income were the income of a domestic insurance company. (2) Exception Such term shall not include any exempt insurance income (as defined in