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

Section 92.11r12.3 Disposition versions

2019-06-19

92.11R12.3. Subject to sections 92.11R12.4 to 92.11R12.6, for the purpose of applying subparagraph c of the first paragraph of section 92.11R12.2 in respect of a life insurance policy issued before 1 January 2017 or an annuity contract, a modified net premium and an amount determined in accordance with that subparagraph c are to be computed using the rates described in the second paragraph and taking into account only

(a)  in the case of a lapse-supported policy effected after 31 December 1990, rates of interest, mortality and policy lapse; and

(b)  in any other case, rates of interest and mortality.

The rates to which the first paragraph refers are as follows:

(a)  in the case of a modified net premium and a benefit (other than a benefit described in subparagraph b) of a participating life insurance policy (other than an annuity contract) under the terms of which the policyholder is entitled to receive a specified amount in respect of the policy’s cash surrender value, the rates used by the insurer when the policy was issued in computing the cash surrender values of the policy;

(b)  in the case of a benefit provided in lieu of a cash settlement on the termination or maturity of a policy, or in satisfaction of a dividend on a policy, the rates used by the insurer in computing the amount of such benefit; and

(c)  in the case of the whole or part of any other policy, the rates used by the insurer in computing the amount of the premiums in respect of the policy.

S.Q. 2019, c. 14, s. 628.