is subject to State law which regulates insurance (within the meaning of section 514(b)(2) of the Employee Retirement Income Security Act of 1974, as in effect on the date of the enactment of this section). (4) Related person A person shall be treated as related person to another person if such person bears a relationship to such other person described in section 267(b) or 707(b). 860N. Taxation of catastrophic risk transfer companies (a) Requirements applicable to catastrophic risk transfer companies The provisions of this part (other than subsection (c) of this section) shall not be applicable to a catastrophic risk transfer company for a taxable year unless— (1) the deduction for dividends paid during the taxable year (as defined in section 561) equals or exceeds 90 percent of its catastrophic risk transfer company taxable income for the taxable year determined without regard to subsection (b)(2)(C), and (2) as of the close of the taxable year, the catastrophic risk transfer company has no earnings and profits accumulated in any taxable year to which the provisions of this part (or the corresponding provisions of prior law) did not apply to it. (b) Method of taxation of companies (1) Imposition of tax on catastrophic risk transfer companies There is hereby imposed for each taxable year upon the catastrophic risk transfer company taxable income of every catastrophic risk transfer company a tax computed as provided in section 11, as though the catastrophic risk transfer company taxable income were the taxable income referred to in section 11. (2) Catastrophic risk transfer company taxable income The catastrophic risk transfer company taxable income shall be the taxable income of the catastrophic risk transfer company adjusted as follows: (A) The net operating loss deduction provided in section 172 shall not be allowed. (B) The deductions for corporations provided in part VIII (except section 248) in subchapter B (section 241 and following, relating to the deduction for dividends received, etc.) shall not be