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

Section 840r20 Disposition versions

2019-06-19

840R20. (Revoked).

s. 840R11.2; O.C. 91-94, s. 90; O.C. 67-96, s. 52; O.C. 1466-98, s. 126; O.C. 1463-2001, s. 111; O.C. 134-2009, s. 1; 2019, c. 14, s. 646.

2012-09-01

840R20. Subject to the second paragraph, in respect of a group life insurance policy an insurer may deduct an amount in respect of a dividend, refund of premiums or refund of premium deposits provided for under the terms of the policy that is used by the insurer to reduce or eliminate a future adverse claims experience under the policy or that is paid or unconditionally credited to the policyholder by the insurer or applied in discharge, in whole or in part, a liability of the policyholder to pay premiums to the insurer, not exceeding the least of

(a)  a reasonable amount in respect of such a dividend, refund of premiums or refund of premium deposits;

(b)  an amount equal to 25% of the amount of the premium payable under the terms of the policy for the 12-month period ending on the date the policy expires, if the policy expires in the year, or at the end of the year, in any other case; and

(c)  the amount of the reserve or liability in respect of such a dividend, refund of premiums or refund of premium deposits reported by the insurer in its annual report for the year filed with the Superintendent of Financial Institutions or, where the insurer was subject to the supervision of the Superintendent of Financial Institutions throughout the year but was not required to file an annual report with the Superintendent for the year, in its financial statements for the year.

An insurer may not, pursuant to the first paragraph, deduct an amount that may be otherwise deducted in computing its income for the year under paragraph b of section 841 of the Act.

s. 840R11.2; O.C. 91-94, s. 90; O.C. 67-96, s. 52; O.C. 1466-98, s. 126; O.C. 1463-2001, s. 111; O.C. 134-2009, s. 1.