I-3, r. 1 - Regulation respecting the Taxation Act

Section 92.19r6 Disposition versions

2021-06-02

92.19R6. Section 92.19R6.1 applies at a particular time in respect of a life insurance policy if

(a)  that time is on its 10th or a later policy anniversary;

(b)  the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy at that time exceeds 250% of

i.  in the case where the particular time at which the policy is issued is determined under section 967.1 of the Act and the policy’s third preceding policy anniversary is before the particular time, the accumulating fund (computed without regard to any amount payable in respect of a policy loan and as though the policy were issued after 31 December 2016) in respect of the policy on that third preceding policy anniversary, or

ii.  in any other case, the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy on its third preceding policy anniversary; and

(c)  where that time is after 31 December 2016,

i.  the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy at that time exceeds the aggregate of all amounts each of which is

(1)  if the policy is issued before 1 January 2017, 3/20 of the accumulating fund, at that time, in respect of an exemption test policy issued in respect of the policy, and

(2)  if the policy is issued after 31 December 2016, 3/8 of the accumulating fund, at that time, in respect of an exemption test policy issued in respect of a coverage under the policy, and

ii.  section 92.19R6.1 did not apply on any of the policy’s six preceding policy anniversaries.

s. 92.19R7; O.C. 7-87, s. 2; O.C. 1470-2002, s. 8; O.C. 1282-2003, s. 9; O.C. 134-2009, s. 1; S.Q. 2019, c. 14, s. 632; S.Q. 2021, c. 14, s. 245.

2019-06-19

92.19R6. Section 92.19R6.1 applies at a particular time in respect of a life insurance policy if

(a)  that time is on its 10th or a later policy anniversary;

(b)  the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy at that time exceeds 250% of the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy on its third preceding policy anniversary; and

(c)  where that time is after 31 December 2016,

i.  the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy at that time exceeds the aggregate of all amounts each of which is

(1)  if the policy is issued before 1 January 2017, 3/20 of the accumulating fund, at that time, in respect of an exemption test policy issued in respect of the policy, and

(2)  if the policy is issued after 31 December 2016, 3/8 of the accumulating fund, at that time, in respect of an exemption test policy issued in respect of a coverage under the policy, and

ii.  section 92.19R6.1 did not apply on any of the policy’s six preceding policy anniversaries.

s. 92.19R7; O.C. 7-87, s. 2; O.C. 1470-2002, s. 8; O.C. 1282-2003, s. 9; O.C. 134-2009, s. 1; S.Q. 2019, c. 14, s. 632.

2012-09-01

92.19R6. Despite sections 92.19R1 to 92.19R5, the following rules apply:

(a)  where the amount of the death benefit of a life insurance policy is, at a particular time, reduced by a particular amount, the amount of the death benefit of the standard policies for purposes of exemption issued before the particular time in respect of the life insurance policy, except the standard policies for purposes of exemption issued in respect thereof in accordance with subparagraph a of the first paragraph of section 92.19R3, must be reduced at the particular time, in the order of the dates of issue of those policies from the nearest to the farthest from the particular time, by an amount equal to the lesser of the part of the particular amount that has not yet been used to reduce the death benefit of one or more other standard policies for purposes of exemption, and the amount immediately before the particular time of the death benefit of the standard policy for the purposes of exemption covered by it;

(b)  where, on the 10th or on any subsequent policy anniversary of a life insurance policy, the accumulating fund thereof, determined without taking into account unpaid policy loans thereon, exceeds 250% of the accumulating fund of the policy at the time of the 3rd preceding policy anniversary, determined without taking into account unpaid policy loans thereon, each standard policy for purposes of exemption that is deemed, under sections 92.19R3 to 92.19R5, to have been issued before that time in respect of the life insurance policy is deemed to have been issued on the date of the 3rd preceding policy anniversary or, if that date is later, on the date on which it was deemed to have been issued under sections 92.19R3 to 92.19R5;

(c)  where, on one or more occasions after 1 December 1982, a premium referred to in section 92.19R7 is paid by a taxpayer in respect of an interest, acquired for the last time not later than that date in a life insurance policy that is neither an annuity contract nor a deposit administration fund policy, or an interest in a life insurance policy issued not later than that date and that is neither an annuity contract nor a deposit administration fund policy is acquired by a taxpayer from a person who held that interest without interruption from that date, the policy is deemed to be an exempt policy from that date of its issue to the date on which occurred, after 1 December 1982, the first of such occasions; and

(d)  a life insurance policy that, for a reason other than its conversion into an annuity contract, ceases to be an exempt policy at the time of a policy anniversary is deemed to be an exempt policy at the time of that policy anniversary in cases where either, if the anniversary occurred 60 days later, the policy would have been an exempt policy at that later date, or the person whose life was insured under the policy died on the day of that policy anniversary or within the following 60 days.

s. 92.19R7; O.C. 7-87, s. 2; O.C. 1470-2002, s. 8; O.C. 1282-2003, s. 9; O.C. 134-2009, s. 1.