purposes of such country’s tax laws, (iii) more than 50 percent of the gross receipts of which for the taxable year— (I) consist of premiums for insurance or reinsurance in connection with property, liability, or the lives or health of individuals, and (II) are treated as earned by such controlled foreign corporation in its home country for purposes of such country’s tax laws, and (iv) the applicable insurance liabilities of which constitute more than 35 percent of its total assets as reported on the company’s applicable financial statement for the year with which or in which the taxable year ends. (B) Applicable insurance liabilities For purposes of subparagraph (A)(iv), the term applicable insurance liabilities means— (i) loss and loss adjustment expenses, (ii) unearned premiums, and (iii) reserves (other than any catastrophe, deficiency, equalization, or similar reserves) for life and health insurance risks and life and health insurance claims with respect to contracts providing coverage for mortality or morbidity risks (not to exceed the amount of such reserve that is required to be reported to the home country insurance regulatory body). (C) Applicable financial statement For purposes of subparagraph (A)(iv), the term applicable financial statement means a statement for financial reporting purposes which— (i) is made on the basis of generally accepted accounting principles, (ii) is made on the basis of international financial reporting standards, but only if there is no statement that meets the requirement of clause (i), or (iii) except as otherwise provided by the Secretary in regulations, is the annual statement which is required to be filed with the home country insurance regulatory body, but only if there is no statement which meets the requirements of clause (i) or (ii). (D) Regulations The Secretary shall prescribe such regulations as necessary to carry out the purposes of this paragraph. (4) Qualifying insurance company branch The term qualifying insurance company branch means a qualified business