accident and health contracts

  • Contracts entered into by life insurance companies that are like indemnity contracts that restore the policyholder to where he or she was before an accident. These contracts fall into two broad categories: cancelable policies and noncancelable policies.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).