SECTION 1. PURPOSE

This revenue procedure provides the procedures by which an insurance company (“Company”) may obtain automatic consent to change its method of accounting for cash advances on commissions (“cash advances”) paid to its agents from deducting a cash advance in the taxable year paid to the agent to deducting a cash advance in the taxable year earned by the agent (“earned cash advance”). This revenue procedure applies only to cash advances that qualify as loans under this revenue procedure.