SECTION 2. CHANGES

.01 DOMESTIC ASSET/LIABILITY PERCENTAGES FOR 2004. The Secretary determines the domestic asset/liability percentage separately for life insurance companies and property and liability insurance companies. For the first taxable year beginning after December 31, 2003, the relevant domestic asset/liability percentages are:

121.7 percent for foreign life insurance companies, and

173.6 percent for foreign property and liability insurance companies. .02 DOMESTIC INVESTMENT YIELDS FOR 2004. The Secretary is required to prescribe separate domestic investment yields for foreign life insurance companies and for foreign property and liability insurance companies. For the first taxable year beginning after December 31,

(as modified and clarified by Announcement 2002–17, 2002–1 C.B. 561, modified and amplified by Rev. Proc. 2002–19, 2002–1 C.B. 696, and amplified, clarified, and modified by Rev. Proc. 2002–54, 2002–2 C.B. 432), apply for taxpayers that are within the scope of Rev. Proc. 2002–9 for the requested year of change. Taxpayers within the scope of Rev. Proc. 2002–9 for the requested year of change that desire to make the changes in method described in §§ 1.77–1 and 1.455–6(b) must follow the procedures in Rev. Proc. 2002–9 instead of the procedures in the regulations and this revenue procedure.