(3) Exceptions (A) Corporations not held by insureds Paragraph (1) shall not apply to any foreign corporation if at all times during the taxable year of such foreign corporation— (i) less than 20 percent of the total combined voting power of all classes of stock of such corporation entitled to vote, and (ii) less than 20 percent of the total value of such corporation, is owned (directly or indirectly under the principles of section 883(c)(4) ) by persons who are (directly or indirectly) insured under any policy of insurance or reinsurance issued by such corporation or who are related persons to any such person. (B) De minimis exception Paragraph (1) shall not apply to any foreign corporation for a taxable year of such corporation if the related person insurance income (determined on a gross basis) of such corporation for such taxable year is less than 20 percent of its insurance income (as so determined) for such taxable year determined without regard to those provisions of subsection (a)(1) which limit insurance income to income from countries other than the country in which the corporation was created or organized. (C) Election to treat income as effectively connected Paragraph (1) shall not apply to any foreign corporation for any taxable year if— (i) such corporation elects (at such time and in such manner as the Secretary may prescribe)— (I) to treat its related person insurance income for such taxable year as income effectively connected with the conduct of a trade or business in the United States, and (II) to waive all benefits (other than with respect to section 884 ) with respect to related person insurance income granted by the United States under any treaty between the United States and any foreign country, and (ii) such corporation meets such requirements as the Secretary shall prescribe to ensure that the tax imposed by this chapter on such income is paid. An election under this subparagraph made for any taxable year shall not be effective if the corporation (or any predecessor thereof) was a disqualified corporation for the taxable year for which the election was made or for any prior taxable year beginning after 1986. (D) Special rules for subparagraph (C) (i) Period during which election in effect (I) In general Except as provided in subclause (II), any election under subparagraph (C) shall apply to the taxable year for which made and all subsequent taxable years unless revoked with the consent of the Secretary. (II) Termination If a foreign corporation which made an election under subparagraph (C) for any taxable year is a disqualified corporation for any subsequent taxable year, such election shall not apply to any taxable year beginning after such subsequent taxable year. (ii) Exemption from tax imposed by section 4371 The tax imposed by section 4371 shall not apply with respect to any related person insurance income treated as effectively connected with the conduct of a trade or business within the United States under subparagraph (C). (E) Disqualified corporation For purposes of this paragraph the term “disqualified corporation” means, with respect to any taxable year, any foreign corporation which is a controlled foreign corporation for an uninterrupted period of 30 days or more during such taxable year (determined without regard to this subsection) but only if a United States shareholder (determined without regard to this subsection) owns (within the meaning of section 958(a) ) stock in such corporation at some time during such taxable year.