Rev. Rul. 68-235

A taxpayer exchanged life insurance, endowment insurance, and fixed annuity policies, prior to their maturity, for three variable annunity policies.

Held, the fact the exchange was for variable annuity policies does not preclude the application of section 1035(a) of the Internal Revenue Code of 1954, providing all of the requirements of that section are met. Thus no gain or loss is recognized on the exchange of the life insurance, endowment insurance, and fixed annuity policies for the three variable annuity contracts.