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

Section 92.19r6.4 Disposition versions

2021-06-02

92.19R6.4. Despite sections 92.19R3 and 92.19R4, where a life insurance policy is issued for any purpose at a particular time determined under section 967.1 of the Act, for the purposes of this division (other than this section and section 92.19R6.3) and Division II in respect of the life insurance policy, the following rules apply at and after the particular time:

(a)  in respect of each coverage issued before the particular time under the life insurance policy, a separate exemption test policy is deemed to be issued in respect of a coverage under the life insurance policy

i.  on the date of issue of the life insurance policy, and

ii.  on each policy anniversary that ends before the particular time and on which the amount of the death benefit under the life insurance policy exceeds 108% of the amount of the death benefit under the life insurance policy on the later of the life insurance policy’s date of issue and the date of the life insurance policy’s preceding policy anniversary, if any;

(b)  in respect of each coverage issued before the particular time under the life insurance policy, section 92.19R3 does not apply to deem an exemption test policy to be issued in respect of the policy, or in respect of a coverage under the policy, at any time before the particular time;

(c)  in respect of each exemption test policy the date of issue of which is determined under subparagraph i of paragraph a, subparagraph iii of subparagraph a of the first paragraph of section 92.19R4 and paragraph b of section 92.19R5 are to be read as if “subparagraph i of subparagraph b of the first paragraph of section 92.19R3” were replaced by “subparagraph i of paragraph a of section 92.19R6.4”;

(d)  in respect of each exemption test policy the date of issue of which is determined under subparagraph ii of paragraph a, subparagraph iv of subparagraph a of the first paragraph of section 92.19R4 is to be read as follows:

“iv. if the date on which the exemption test policy is issued is determined under subparagraph ii of paragraph a of section 92.19R6.4 at a time before a particular time, the portion of the amount that would be determined, at the time immediately before the particular time, under subparagraph ii if the exemption test policy were issued in respect of the policy on the same date as the date determined for it under subparagraph ii of paragraph a of section 92.19R6.4 that can be reasonably allocated to the coverage in the circumstances (an allocation being considered not to be reasonable if the total of the amounts determined under subparagraphs a and b of the second paragraph is less than the amount determined under subparagraph c of that paragraph in respect of the exemption test policy the date of issue of which is determined under subparagraph i of paragraph a of section 92.19R6.4 in respect of the coverage), or”; and

(e)  section 92.19R5 is to be read as if “at a particular time” in the portion of paragraph b before subparagraph i were replaced by “at a time that is at or after the particular time referred to in section 92.19R6.4 in respect of the life insurance policy”.

S.Q. 2019, c. 14, s. 633; S.Q. 2021, c. 14, s. 247.

2019-06-19

92.19R6.4. Where, under section 967.1 of the Act, a particular time when a life insurance policy is issued is determined, the following rules apply, for the purposes of sections 92.19R4 and 92.19R5, at or after the particular time in respect of an exemption test policy issued before the particular time in respect of the policy:

(a)  subparagraphs iii and iv of subparagraph a of the first paragraph of section 92.19R4, and not subparagraphs i and ii of that subparagraph a, apply in respect of the exemption test policy; and

(b)  paragraph b of section 92.19R5, and not paragraph a of that section, applies in respect of the exemption test policy.

S.Q. 2019, c. 14, s. 633.