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

Section 92.11r1.1 Disposition versions

2021-06-02

92.11R1.1. The formula to which the definition of “future net premiums or cost of insurance charges” in the first paragraph of section 92.11R1 refers at a particular time is the following:

A × (B/C).

In the formula in the first paragraph,

(a)  A is future premiums or cost of insurance charges in respect of the coverage at that time;

(b)  B is the present value at the date of issue of the coverage of future benefits to be provided in respect of the coverage on that date;

(c)  C is the present value at the date of issue of the coverage of future premiums or cost of insurance charges in respect of the coverage on that date.

The formula to which the definition of “net premium reserve” in the first paragraph of section 92.11R1 refers at a particular time is the following:

D + E + F.

In the formula in the third paragraph,

(a)  D is the aggregate of all amounts each of which is the present value at that time of the fund value of a coverage under the policy at that time;

(b)  E is the amount of the fund value benefit under the policy at that time; and

(c)  F is the aggregate of all amounts each of which is, in respect of a coverage under the policy,

i.  if the particular time is at or after the interpolation time of the coverage, the amount by which the present value at the particular time of future benefits to be provided in respect of the coverage at the particular time exceeds the present value at the particular time of future net premiums or cost of insurance charges in respect of the coverage at the particular time, or

ii.  if the particular time is before the interpolation time of the coverage, the amount determined by the formula

G/H × (I − J).

For the purposes of the formula in subparagraph ii of subparagraph c of the fourth paragraph,

(a)  G is the number of years that the coverage has been in effect as of the particular time;

(b)  H is the number of years that the coverage would have been in effect if the particular time were the interpolation time;

(c)  I is the present value at the interpolation time of future benefits to be provided in respect of the coverage at the interpolation time and, if the coverage has a fund value at the particular time, determined as if the amount of the death benefit under the coverage at the interpolation time were equal to the amount by which the death benefit at the particular time exceeds the fund value of the coverage at the particular time; and

(d)  J is the present value at the interpolation time of future net premiums or cost of insurance charges in respect of the coverage at the interpolation time and, if the coverage has a fund value at the particular time, determined as if the net amount at risk under the coverage after the interpolation time were equal to the amount by which the death benefit at the particular time exceeds the fund value of the coverage at the particular time.

S.Q. 2019, c. 14, s. 620; S.Q. 2021, c. 14, s. 241.

2019-06-19

92.11R1.1. The formula to which the definition of “future net premiums or cost of insurance charges” in the first paragraph of section 92.11R1 refers at a particular time is the following:

A × (B/C).

In the formula in the first paragraph,

(a)  A is future premiums or cost of insurance charges in respect of the coverage at that time;

(b)  B is the present value at the date of issue of the coverage of future benefits to be provided in respect of the coverage on that date;

(c)  C is the present value at the date of issue of the coverage of future premiums or cost of insurance charges in respect of the coverage on that date.

The formula to which the definition of “net premium reserve” in the first paragraph of section 92.11R1 refers at a particular time is the following:

D + E + F.

In the formula in the third paragraph,

(a)  D is the aggregate of all amounts each of which is the present value at that time of the fund value of a coverage under the policy at that time;

(b)  E is the amount of the fund value benefit under the policy at that time; and

(c)  F is the aggregate of all amounts each of which is, in respect of a coverage under the policy,

i.  if the particular time is at or after the interpolation time of the coverage, the amount by which the present value at the particular time of future benefits to be provided in respect of the coverage at the particular time exceeds the present value at the particular time of future net premiums or cost of insurance charges in respect of the coverage at the particular time, or

ii.  if the particular time is before the interpolation time of the coverage, the amount determined by the formula

G/H × (I − J).

For the purposes of the formula in subparagraph ii of subparagraph f of the fourth paragraph,

(a)  G is the number of years that the coverage has been in effect as of the particular time;

(b)  H is the number of years that the coverage would have been in effect if the particular time were the interpolation time;

(c)  I is the present value at the interpolation time of future benefits to be provided in respect of the coverage at the interpolation time and, if the coverage has a fund value at the particular time, determined as if the amount of the death benefit under the coverage at the interpolation time were equal to the amount by which the death benefit at the particular time exceeds the fund value of the coverage at the particular time; and

(d)  J is the present value at the interpolation time of future net premiums or cost of insurance charges in respect of the coverage at the interpolation time and, if the coverage has a fund value at the particular time, determined as if the net amount at risk under the coverage after the interpolation time were equal to the amount by which the death benefit at the particular time exceeds the fund value of the coverage at the particular time.

S.Q. 2019, c. 14, s. 620.