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

Section 92.19r1 Disposition versions

2019-06-19

92.19R1. For the purposes of paragraph a of section 92.19 of the Act, an exempt policy at a particular time means a life insurance policy in respect of which the following conditions are met:

(a)  if the particular time corresponds to a policy anniversary of the policy, the accumulating fund of the policy at that time, determined without considering any policy loan, does not exceed the aggregate of the accumulating funds, at that time, of the accumulating funds of the exemption test policies issued in respect of the policy not later than that time;

(b)  assuming that the terms of the policy do not differ from those that were in force on the last policy anniversary of the policy occurring not later than the particular time and, where necessary, making reasonable assumptions about all the other factors, including, in the case of a participating life insurance policy within the meaning of subparagraph f of the first paragraph of section 835 of the Act, the assumption that the amounts of dividends paid will be as shown in the dividend scale, it is reasonable to expect that

i.  if the policy is issued before 1 January 2017, the condition provided for in subparagraph a will be met on each policy anniversary of the policy on which the policy could remain in force after the particular time but before the endowment date of the exemption test policies issued in respect of the policy, and

ii.  if the policy is issued after 31 December 2016, the condition in subparagraph a will be met on the policy’s next policy anniversary, without reference to any automatic adjustments under the policy that may be made after the particular time to ensure that the policy is an exempt policy and, where applicable, making projections using the most recent values that are used to calculate the accumulating fund in respect of the policy or in respect of each exemption test policy issued in respect of a coverage under the policy;

(c)  the condition in paragraph a was met on all policy anniversaries of the policy prior to the particular time; and

(d)  the condition in paragraph b was met at all times from the first policy anniversary of the policy and before the particular time.

In the first paragraph, a life insurance policy does not include an annuity contract, a deposit administration fund policy or a leveraged insured annuity policy.

s. 92.19R1; O.C. 7-87, s. 2; O.C. 67-96, s. 11; O.C. 1470-2002, s. 7; O.C. 134-2009, s. 1; O.C. 390-2012, s. 7; O.C. 1182-2017, s. 2; S.Q. 2019, c. 14, s. 630.

2017-12-20

92.19R1. For the purposes of paragraph a of section 92.19 of the Act, an exempt policy at a particular time means a life insurance policy in respect of which the following conditions are met:

(a)  if the particular time corresponds to a policy anniversary of the policy, the accumulating fund of the policy at that time, determined without considering any policy loan, does not exceed the aggregate of the accumulating funds, at that time, of the accumulating funds of the standard policies for purposes of exemption issued in respect of the policy not later than that time;

(b)  it is reasonable to expect, at the particular time, that the condition provided for in paragraph a will be met on each policy anniversary of the policy on which the policy could remain in force after the particular time but before the date determined under paragraph b of section 92.19R5 with respect to the standard policies for purposes of exemption issued in respect of the policy and, to that end,

i.  it must be assumed that the terms of the policy do not differ from those that were in force on the last policy anniversary of the policy occurring not later than the particular time, and

ii.  any other reasonable assumption must be made, where necessary, about all the other factors, including, in the case of a participating life insurance policy within the meaning of subparagraph f of the first paragraph of section 835 of the Act, the assumption that the amounts of dividends paid will be as shown in the dividend scale;

(c)  the condition in paragraph a was met on all policy anniversaries of the policy prior to the particular time; and

(d)  the condition in paragraph b was met at all times from the first policy anniversary of the policy and before the particular time.

In the first paragraph, a life insurance policy does not include an annuity contract, a deposit administration fund policy or a leveraged insured annuity policy.

s. 92.19R1; O.C. 7-87, s. 2; O.C. 67-96, s. 11; O.C. 1470-2002, s. 7; O.C. 134-2009, s. 1; O.C. 390-2012, s. 7; O.C. 1182-2017, s. 2.

2012-09-01

92.19R1. For the purposes of paragraph a of section 92.19 of the Act, an exempt policy at a particular time means a life insurance policy in respect of which the following conditions are met:

(a)  if the particular time corresponds to a policy anniversary of the policy, the accumulating fund of the policy at that time, determined without considering any policy loan, does not exceed the aggregate of the accumulating funds, at that time, of the accumulating funds of the standard policies for purposes of exemption issued in respect of the policy not later than that time;

(b)  it is reasonable to expect, at the particular time, that the condition provided for in paragraph a will be met on each policy anniversary of the policy on which the policy could remain in force after the particular time but before the date determined under paragraph b of section 92.19R5 with respect to the standard policies for purposes of exemption issued in respect of the policy and, to that end,

i.  it must be assumed that the terms of the policy do not differ from those that were in force on the last policy anniversary of the policy occurring not later than the particular time, and

ii.  any other reasonable assumption must be made, where necessary, about all the other factors, including, in the case of a participating life insurance policy within the meaning of subparagraph f of the first paragraph of section 835 of the Act, the assumption that the amounts of dividends paid will be as shown in the dividend scale;

(c)  the condition in paragraph a was met on all policy anniversaries of the policy prior to the particular time; and

(d)  the condition in paragraph b was met at all times from the first policy anniversary of the policy and before the particular time.

In the first paragraph, a life insurance policy does not include an annuity contract or a deposit administration fund policy.

s. 92.19R1; O.C. 7-87, s. 2; O.C. 67-96, s. 11; O.C. 1470-2002, s. 7; O.C. 134-2009, s. 1; O.C. 390-2012, s. 7.