Consolidated Statutes and Regulations
Consolidated Statutes
Consolidated Regulations
Annual Statutes and Regulations
Annual Statutes
Annual Regulations
Additional information
Québec Official Publisher
What’s new?
Information note
Policy of the Minister of Justice
Laws: Amendments
Laws: Provisions not in force
Laws: Provisions brought into force
Annual Statutes: PDF versions since 1996
Regulations: Amendments
Annual Regulations: PDF versions since 1996
Court Decisions
I-3, r. 1 - Regulation respecting the Taxation Act
Section 92.19r4
Disposition versions
92.19R4. For the purpose of determining whether the condition in subparagraph a of the first paragraph of section 92.19R1 is met on a policy anniversary of a life insurance policy, each exemption test policy issued in respect of the life insurance policy, or in respect of a coverage under the life insurance policy, is deemed
(a) to have a death benefit that is uniform throughout the term of the exemption test policy and that, subject to section 92.19R5, is equal to
i. if the date on which the exemption test policy is issued is determined under subparagraph i of subparagraph a of the first paragraph of section 92.19R3, the amount by which the amount on that policy anniversary of the death benefit under the life insurance policy exceeds the aggregate of all amounts each of which is the amount on that policy anniversary of the death benefit under another exemption test policy issued on or before that policy anniversary in respect of the life insurance policy,
ii. if the date on which the exemption test policy is issued is determined under subparagraph ii of subparagraph a of the first paragraph of section 92.19R3, the amount of the excess referred to in that subparagraph on that date in respect of the life insurance policy,
iii. if the date on which the exemption test policy is issued is determined under subparagraph i of subparagraph b of the first paragraph of section 92.19R3, the amount determined by the formula
A + B − C,
iv. if the date on which the exemption test policy is issued is determined under subparagraph ii of subparagraph b of the first paragraph of section 92.19R3, the amount of the excess referred to in that subparagraph on that date in respect of the coverage, or
v. if the date on which the exemption test policy is issued is determined under subparagraph iii of subparagraph b of the first paragraph of section 92.19R3, the lesser of
(1) the amount by which the amount determined under subparagraph a of the second paragraph of section 92.19R3 exceeds the amount determined under subparagraph b of that paragraph in respect of the coverage on that date, and
(2) the amount determined under subparagraph 1 of subparagraph i of subparagraph b of the second paragraph in respect of the coverage on that date; and
(b) to pay the amount of its death benefit on the earlier of the exemption test policy’s endowment date and
i. if the life insurance policy is issued before 1 January 2017, the date of death of the individual whose life is insured under the life insurance policy, or
ii. if the life insurance policy is issued after 31 December 2016,
(1) if 2 or more lives are jointly insured under the coverage, the date at which the benefit would be payable as a result of the death of any of the lives, and
(2) in any other case, the date of death of the individual whose life is insured under the coverage.
In the formula in subparagraph iii of subparagraph a of the first paragraph,
(a) A is the amount, on the policy anniversary referred to in the first paragraph, of the death benefit under the coverage;
(b) B is
i. if the death benefit under the life insurance policy includes a fund value benefit on the policy anniversary referred to in the first paragraph, the portion of the fund value benefit on that policy anniversary that is equal to the lesser of
(1) the maximum amount of the fund value benefit that could be payable on that policy anniversary if no other coverage were offered under the life insurance policy and the life insurance policy were an exempt policy, and
(2) the amount by which the fund value benefit on that policy anniversary exceeds the aggregate of all amounts each of which is the portion of the fund value benefit allocated to other coverages under the life insurance policy, and
ii. in any other case, nil; and
(c) C is the aggregate of all amounts each of which is the amount, on the policy anniversary referred to in the first paragraph, of the death benefit under another exemption test policy issued on or before that policy anniversary in respect of the coverage.
92.19R4. Subject to section 92.19R6.4, for the purpose of determining whether the condition in subparagraph a of the first paragraph of section 92.19R1 is met on a policy anniversary of a life insurance policy, each exemption test policy issued in respect of the life insurance policy, or in respect of a coverage under the life insurance policy, is deemed
(a) to have a death benefit that is uniform throughout the term of the exemption test policy and that, subject to section 92.19R5, is equal to
i. if the date on which the exemption test policy is issued is determined under subparagraph i of subparagraph a of the first paragraph of section 92.19R3, the amount by which the amount on that policy anniversary of the death benefit under the life insurance policy exceeds the aggregate of all amounts each of which is the amount on that policy anniversary of the death benefit under another exemption test policy issued on or before that policy anniversary in respect of the life insurance policy,
ii. if the date on which the exemption test policy is issued is determined under subparagraph ii of subparagraph a of the first paragraph of section 92.19R3, the amount of the excess referred to in that subparagraph on that date in respect of the life insurance policy,
iii. if the date on which the exemption test policy is issued is determined under subparagraph i of subparagraph b of the first paragraph of section 92.19R3, the amount determined by the formula
A + B − C,
iv. if the date on which the exemption test policy is issued is determined under subparagraph ii of subparagraph b of the first paragraph of section 92.19R3, the amount of the excess referred to in that subparagraph on that date in respect of the coverage, or
v. if the date on which the exemption test policy is issued is determined under subparagraph iii of subparagraph b of the first paragraph of section 92.19R3, the lesser of
(1) the amount by which the amount determined under subparagraph a of the second paragraph of section 92.19R3 exceeds the amount determined under subparagraph b of that paragraph in respect of the coverage on that date, and
(2) the amount determined under subparagraph 1 of subparagraph i of subparagraph b of the second paragraph in respect of the coverage on that date; and
(b) to pay the amount of its death benefit on the earlier of the exemption test policy’s endowment date and
i. if the life insurance policy is issued before 1 January 2017, the date of death of the individual whose life is insured under the life insurance policy, or
ii. if the life insurance policy is issued after 31 December 2016,
(1) if 2 or more lives are jointly insured under the coverage, the date at which the benefit would be payable as a result of the death of any of the lives, and
(2) in any other case, the date of death of the individual whose life is insured under the coverage.
In the formula in subparagraph iii of subparagraph a of the first paragraph,
(a) A is the amount, on the policy anniversary referred to in the first paragraph, of the death benefit under the coverage;
(b) B is
i. if the death benefit under the life insurance policy includes a fund value benefit on the policy anniversary referred to in the first paragraph, the portion of the fund value benefit on that policy anniversary that is equal to the lesser of
(1) the maximum amount of the fund value benefit that could be payable on that policy anniversary if no other coverage were offered under the life insurance policy and the life insurance policy were an exempt policy, and
(2) the amount by which the fund value benefit on that policy anniversary exceeds the aggregate of all amounts each of which is the portion of the fund value benefit allocated to other coverages under the life insurance policy, and
ii. in any other case, nil; and
(c) C is the aggregate of all amounts each of which is the amount, on the policy anniversary referred to in the first paragraph, of the death benefit under another exemption test policy issued on or before that policy anniversary in respect of the coverage.
92.19R4. The amount referred to in subparagraph a of the second paragraph of section 92.19R3 is,
(a) in the case of the first standard policy for the purposes of exemption issued in respect of the life insurance policy, the amount, on the particular policy anniversary of the policy referred to in the second paragraph of section 92.19R3, of the death benefit of the life insurance policy, less the aggregate of the amounts each of which is the amount, on that policy anniversary, of the death benefit of another standard policy for the purposes of exemption issued not later than that policy anniversary in respect of the life insurance policy; or
(b) in all other cases, the amount by which the death benefit of the life insurance policy on the date of issue of the standard policy for the purposes of exemption exceeds 108% of the amount of the death benefit of the life insurance policy on the date of issue of the life insurance policy or, if that date is later, on the date of the preceding policy anniversary.
