Before us is a petition by the Commissioner of Internal Revenue to review a decision of the Tax Court of the United States involving income taxes for the years 1958 through 1961, holding that the guaranteed renewable accident and health insurance contracts issued by the taxpayer, Pacific Mutual Life Insurance Company, were “issued or renewed for periods of five years or more” within the purview of Sec. 809(d) (5) of the Internal Revenue Code of 1954.

The following summary of facts is taken from the petitioner’s opening brief, to which taxpayer offers no dissent in its answer brief.

Taxpayer, a life insurance company, issued a guaranteed renewable accident and health contract providing disability income benefits which was available to insureds whose age did not exceed 59 years. Under the terms of the policy, the insured was given the right to renew the policy for consecutive periods of one year each to age 65 by payment of the renewal premium for each such term. Taxpayer reserved the right to change the amount of the renewal premium on the basis of its applicable rate tables in effect on the due date, provided, however, that (1) no change was made in the rate tables applicable to the insured’s policy unless such change was also made applicable to all policies providing like benefits and renewal rights and in the same rating class; (2) the rating class of the insured’s policy was not changed because of any change in the insured’s status, such as change of physical condition or occupation; and (3) each renewal premium was to be determined in accordance with the rating class and age of the insured at the date of issue. Taxpayer computed the premium rates on such guaranteed renewable accident and health policies on the basis that the premium would remain level to age 65, the same as it does for a life insurance policy with a term to age 65.

In determining its gain from operations (also referred to as the Phase II tax base), taxpayer claimed a deduction under Section 809(d) (5) of the 1954 Code, based upon the inclusion premiums received under the above policies in the computation of 3% of premiums attributable to nonparticipating contracts issued or renewed for periods of 5 years or more. The Commissioner determined that the contracts in question did not qualify under Section 809(d) (5) as “contracts * * * which are issued or renewed for periods of 5 years or more” and that the premiums attributable to the contracts accordingly were not to be included in computing taxpayer’s Section 809(d) (5) deduction. The Tax Court held that the deduction should be allowed.

A specimen copy of the “Guaranteed Renewable Income Protection Policy” which was issued by taxpayer was received as an exhibit in the Tax Court proceedings (Exhibit 29-AC). Pertinent provisions appearing in the exhibit are:

The only specification of error relied upon by the Commissioner is that:

The statute involved is the Life Insurance Company Income Tax Act of 1959, 73 Stat. 112 , Internal Revenue Code §§ 801-820, as amended. Relevant provisions thereof are:

As noted, Section 809(d) (5) provides an alternative deduction in

The reasons for including the alternative 3 percent deduction were explained by the Senate Finance Committee as follows:

The Senate, in discussing the minimum five year requirement, stated:

In reference to Guaranteed Renewable Contracts, the Committee states:

In the course of its opinion, the Tax Court stated:

We believe that the Tax Court erred in concluding that the taxpayer’s “Guaranteed Renewable Income Protection Policy” was issued or renewed for periods of 5 years or more. In our view such construction is contrary to the plain meaning of the language employed by Congress in creating the alternative deduction provided in See. 809(d) (5), the rationale giving rise to such provision, and Congressional intent, as reflected in its legislative history.

As stated in the dissenting opinion of Judge Simpson of the Tax Court:

The taxpayer contends that even if the Tax Court erred in concluding that its Guaranteed Renewable Accident and Health Contract was issued or renewed for periods of five years or more, taxpayer is nevertheless entitled to the benefit of the 3 % of premiums deduction provided for in Sec. 809(d) (5) because of the provisions of See. 801(e) quoted, supra. This alternative ground was asserted by taxpayer in the Tax Court but is not commented upon either in the majority or dissenting opinion. It is, however, asserted on this appeal.

Taxpayer calls attention to the facts:

(a) that Sec. 801(e), as well as Sec. 809(d) (5) are contained in Part I of Subehapter L, which includes all of the sections relating to the taxation of life insurance companies; and

(b) that the only limitation placed upon nonparticipating contracts by Sec. 809(d) (5) in order to qualify for the benefit of the 3% of premiums deduction is that they be issued or renewed for periods of five years or more.

Based on the foregoing premises, taxpayer argues that under Sec. 801(e) its Guaranteed Renewable Accident and Health Contracts “shall be treated in the same manner as noneancellable life, health and accident insurance.”

We are not persuaded by taxpayer’s argument.

Sections 801 and 809 were adopted as parts of a single Act, the Act of June 25, 1959, Pub.L. 86-69, 73 Stat. 112. The legislative history quoted, supra, is pertinent and applicable to both sections.

Sec. 801 is a definition section. Sec. 801(e) does not specify the period of time for which “guaranteed renewable life, health and accident insurance” shall be issued or renewed. The alternative deduction provided for in Sec. 809(d) (5) —an amount equal to 3% of the premiums — is restricted to nonparticipating contracts “which are issued or renewed for periods of 5 years or more.”

To avoid inconsistent treatment of the same insurance contract under Sec. 801 (e), and under Sec. 809(d) (5), and in light of the reasons and purpose behind the enactment of the alternative deduction provision contained in Sec. 809(d) (5), we are of the view that Congress impliedly adopted as part of Sec. 801(e) the requirement contained in the alternative deduction provision of Sec. 809(d) (5) that the contracts mentioned in Sec. 801(e) be issued or renewed for periods of five years or more. Since we have earlier in this opinion held that the Tax Court erred in concluding that the taxpayer’s “Guaranteed Renewable Income Protection Policy” was issued or renewed for periods of five years or more, Sec. 801(e) is not relevant and furnishes no support for taxpayer’s alternative ground.

The decision of the Tax Court is reversed.

. Reported at 48 T.C. 118 , three judges dissenting. . The determination of the taxable income of a life insurance company is made under a detailed three-phase statutory formula. For a detailed discussion of the 1959 Act, see United States v. Atlas Insurance Co., 381 U.S. 233 , 85 S.Ct. 1379 , 14 L.Ed.2d 358 (1965).