840R23. For the purposes of section 840R22, the amount that an insurer may deduct for a taxation year and a modified net premium must be computed based solely on rates of interest, mortality and policy lapse, in the case of a lapse-supported policy effected after 31 December 1990, and based solely on rates of interest and mortality, in any other case, using,(a) in the case of a modified net premium and a benefit, other than a benefit referred to in paragraph b of a participating life insurance policy, other than an annuity contract, under the terms of which the policyholder is entitled to receive a specified amount in respect of the policy’s cash surrender value, the rates used by the insurer when the policy was issued in computing the cash surrender values of the policy;
(b) in the case of a benefit provided for in lieu of a cash settlement on the termination or maturity of a policy, or in satisfaction of a dividend on a policy, the rates used by the insurer in computing the amount of such benefit; and
(c) in the case of the whole or part of any other policy, the rates used by the insurer in computing the amount of the premiums in respect of the policy.