of subsection (a)(1), passive income shall not include qualified insurance income of a qualifying insurance company. (2) Qualified insurance income For purposes of this subsection, the term qualified insurance income means income of a qualifying insurance company which is— (A) received from a person other than a related person and derived from the investments made by a qualifying insurance company or a qualifying insurance company branch of its reserves allocable to exempt contracts or of 80 percent of its unearned premiums from exempt contracts (as both are determined in the manner prescribed under paragraph (4)), or (B) received from a person other than a related person and derived from investments made by a qualifying insurance company or a qualifying insurance company branch of an amount of its assets allocable to exempt contracts equal to— (i) in the case of property, casualty, or health insurance contracts, one-third of its premiums earned on such insurance contracts during the taxable year (as defined in section 832(b)(4)), and (ii) in the case of life insurance or annuity contracts, 10 percent of the reserves described in subparagraph (A) for such contracts. (3) Principles for determining qualified insurance income Except as provided by the Secretary, for purposes of subparagraphs (A) and (B) of paragraph (2)— (A) in the case of any contract which is a separate account-type contract (including any variable contract not meeting the requirements of section 817), income credited under such contract shall be allocable only to such contract, and (B) income not allocable under subparagraph (A) shall be allocated ratably among contracts not described in subparagraph (A). (4) Methods for determining unearned premiums and reserves For purposes of paragraph (2)(A)— (A) Property and casualty contracts The unearned premiums and reserves of a qualifying insurance company or a qualifying insurance company branch with respect to property, casualty, or health insurance contracts shall be determined using the same