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

Section 92.11r10 Disposition versions

2019-06-19

92.11R10. For the purpose of applying section 92.11R8 in respect of an exemption test policy in respect of a life insurance policy issued before 1 January 2017, the rates of interest and mortality used and the age of the person whose life is insured must be the same as those used in computing an amount referred to in subparagraph a or b of the first paragraph of section 92.11R12.3 in respect of the life insurance policy in respect of which the exemption test policy is issued, except that

(a)  if the life insurance policy is one in respect of which subparagraph c of the second paragraph of section 92.11R12.3 applies and if the amount determined under subparagraph i of subparagraph c of the first paragraph of section 92.11R12.2 in respect of that policy exceeds the amount determined in its respect under subparagraph ii of that subparagraph c, the rates of interest and mortality used may be those used in computing the cash surrender values of that policy;

(b)  if the interest rate for a period, otherwise determined under this section in respect of that interest, is lower than the interest rate so determined for a subsequent period, the rate that is required to be used is the simple rate that, if it applied to each period, could be used in determining premiums in respect of the life insurance policy;

(c)  each amount of a death benefit is to be determined net of any portion of the death benefit in respect of the exemption test policy that is related to a segregated fund.

s. 92.11R1.0.8; O.C. 67-96, s. 10; O.C. 134-2009, s. 1; S.Q. 2019, c. 14, s. 625.

2012-09-01

92.11R10. For the purposes of section 92.11R8, the interest rates and mortality rates used and the age of the person whose life is insured must be the same as those used in sections 840R22 to 840R29 in computing an amended net premium or the amount that an insurer may deduct for a taxation year under section 840R22 in respect of the life insurance policy in respect of which the standard policy for purposes of exemption is issued, except that

(a)  if the life insurance policy is one to which paragraph c of section 840R23 applies and if the amount fixed under paragraph a of section 840R22 in respect of that policy exceeds the amount fixed in respect of it under paragraph b of that section 840R22, the interest rates and mortality rates used may be those used in computing the cash surrender values of that policy; and

(b)  if the interest rate for a period, otherwise fixed under this section in respect of that interest, is lower than the interest rate so fixed for a subsequent period, the rate that is required to be used is the simple rate that, if it applied to each period, could be used in fixing premiums in respect of the life insurance policy.

s. 92.11R1.0.8; O.C. 67-96, s. 10; O.C. 134-2009, s. 1.