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

Section 92.19r5 Disposition versions

2021-06-02

92.19R5. The following rules apply for the purpose of determining the amount of a death benefit under an exemption test policy issued in respect of

(a)  a life insurance policy issued before 1 January 2017 if, at a particular time, the amount of a death benefit under the life insurance policy is reduced, a particular amount that is equal to the reduction is to be applied at that time to reduce the amount of the death benefit under each exemption test policy issued before that time in respect of the life insurance policy (other than the exemption test policy the date of issue of which is determined under subparagraph i of subparagraph a of the first paragraph of section 92.19R3) in the order in which the dates of their issuance are proximate to that time, by an amount equal to the lesser of

i.  the portion of the particular amount that did not reduce the death benefit under one or more other such exemption test policies, and

ii.  the amount, immediately before that time, of the death benefit under the relevant exemption test policy; and

(b)  a coverage under a life insurance policy issued after 31 December 2016 if, at a particular time, there is a particular reduction in the amount of a death benefit under the coverage, or the portion of the fund value benefit referred to in subparagraph i of subparagraph b of the second paragraph of section 92.19R4 in respect of the coverage, the amount of the death benefit under each exemption test policy issued before that time in respect of the coverage (other than the exemption test policy the date of issue of which is determined under subparagraph i of subparagraph b of the first paragraph of section 92.19R3) is to be reduced at that time by an amount equal to the least of

i.  the particular reduction,

ii.  the amount, immediately before that time, of the death benefit under the relevant exemption test policy, and

iii.  the portion of the particular reduction that did not reduce the death benefit under one or more other such exemption test policies issued on or after the date of issue of the relevant exemption test policy.

s. 92.19R6; O.C. 7-87, s. 2; O.C. 134-2009, s. 1; S.Q. 2019, c. 14, s. 632; S.Q. 2021, c. 14, s. 244.

2019-06-19

92.19R5. Subject to section 92.19R6.4, the following rules apply for the purpose of determining the amount of a death benefit under an exemption test policy issued in respect of

(a)  a life insurance policy issued before 1 January 2017 if, at a particular time, the amount of a death benefit under the life insurance policy is reduced, a particular amount that is equal to the reduction is to be applied at that time to reduce the amount of the death benefit under each exemption test policy issued before that time in respect of the life insurance policy (other than the exemption test policy the date of issue of which is determined under subparagraph i of subparagraph a of the first paragraph of section 92.19R3) in the order in which the dates of their issuance are proximate to that time, by an amount equal to the lesser of

i.  the portion of the particular amount that did not reduce the death benefit under one or more other such exemption test policies, and

ii.  the amount, immediately before that time, of the death benefit under the relevant exemption test policy; and

(b)  a coverage under a life insurance policy issued after 31 December 2016 if, at a particular time, there is a particular reduction in the amount of a death benefit under the coverage, or the portion of the fund value benefit referred to in subparagraph i of subparagraph b of the second paragraph of section 92.19R4 in respect of the coverage, the amount of the death benefit under each exemption test policy issued before that time in respect of the coverage (other than the exemption test policy the date of issue of which is determined under subparagraph i of subparagraph b of the first paragraph of section 92.19R3) is to be reduced at that time by an amount equal to the least of

i.  the particular reduction,

ii.  the amount, immediately before that time, of the death benefit under the relevant exemption test policy, and

iii.  the portion of the particular reduction that did not reduce the death benefit under one or more other such exemption test policies issued on or after the date of issue of the relevant exemption test policy.

s. 92.19R6; O.C. 7-87, s. 2; O.C. 134-2009, s. 1; S.Q. 2019, c. 14, s. 632.

2012-09-01

92.19R5. The date referred to in subparagraph b of the second paragraph of section 92.19R3 is the earlier of

(a)  the date of death of the person whose life was insured under the life insurance policy; and

(b)  the date occurring 10 years after the date of issue of the life insurance policy or, if that date is later, the date on which the person whose life is insured will reach the age of 85, if the person survives.

s. 92.19R6; O.C. 7-87, s. 2; O.C. 134-2009, s. 1.