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

Section 92.11r1 Disposition versions

2023-09-26

92.11R1. For the purposes of this chapter,

“accumulating fund” at a particular time, in respect of an interest in an annuity contract or a life insurance policy means the amount determined at that time in respect of the interest in accordance with sections 92.11R2 to 92.11R13;

“adjusted purchase price” of a taxpayer’s interest in an annuity contract at a particular time means, subject to sections 336R8 to 336R11, the amount that would be determined at that time in respect of the interest as the adjusted cost basis under sections 976 and 976.1 of the Act if that section 976.1 were read without reference to its paragraph c;

“amount payable” has the meaning assigned by subparagraph j of the first paragraph of section 835 of the Act;

“cash surrender value” has the meaning assigned to it by paragraph d of section 966 of the Act;

“coverage” under a life insurance policy means

(a)  for the purposes of Division IV, each life insurance (other than a fund value benefit) under the policy in respect of a life, or 2 or more lives jointly insured; and

(b)  for the purposes of this chapter (except Division IV) and section 976.1R1, each life insurance (other than a fund value benefit) under the policy in respect of a life, or 2 or more lives jointly insured, and in respect of which a particular schedule of premium or cost of insurance rates applies, each such insurance being a separate coverage;

“death benefit” includes the amount of an endowment benefit but does not include

(a)  an additional amount payable following an accidental death; and

(b)  where interest on an amount held on deposit by an insurer is included in computing the income of a policyholder for a taxation year, that interest and the amount held on deposit;

“endowment date” of an exemption test policy means

(a)  where the exemption test policy is issued in respect of a life insurance policy issued before 1 January 2017, the later of the 10th anniversary of the date of issue of the life insurance policy and the first policy anniversary that is after the day preceding the day on which the individual whose life is insured under the policy would, if the individual survived, attain the age of 85 years, within the meaning of the policy; or

(b)  where the exemption test policy is issued in respect of a coverage under a life insurance policy issued after 31 December 2016,

i.  if 2 or more lives are jointly insured under the coverage, the date that would be determined under subparagraph ii using the equivalent single age, determined on the coverage’s date of issue and in accordance with accepted actuarial principles and practices, that reasonably approximates the mortality rates of those lives, and

ii.  in any other case, the later of the first policy anniversary that is after the day preceding the day on which the individual whose life is insured under the coverage would, if the individual survived, attain the age of 90 years, within the meaning of the policy, and

(1)  the 15th anniversary of the date of issue of the exemption test policy, or

(2)  if it is earlier than that 15th anniversary, the first policy anniversary that is after the day preceding the day on which the individual whose life is insured under the coverage would, if the individual survived, attain the age of 105 years, within the meaning of the policy;

“exempt policy” has the meaning assigned to it by Division IV;

“fund value benefit” under a life insurance policy at a particular time means the amount by which the fund value of the policy at that time exceeds the aggregate of all amounts each of which is a fund value of a coverage under the policy at that time;

“fund value of a coverage” under a life insurance policy at a particular time means the aggregate of all amounts each of which is the balance at that time of an investment account in respect of the policy that reduces the net amount at risk as determined for the purpose of calculating the cost of insurance charges for the coverage for the period during which those charges are incurred or would be incurred if they were to apply until the termination of the coverage;

“fund value of a policy” at a particular time means the aggregate of all amounts each of which is the balance at that time of an investment account in respect of the policy and, for that purpose, any amount held on deposit by an insurer and any interest on the deposit are included in that aggregate if the interest is not included in computing the income of a policyholder for a taxation year and are excluded from that aggregate if the interest is included in computing the income of a policyholder for a taxation year;

“future benefits to be provided” in respect of a coverage under a life insurance policy at a particular time means

(a)  if there is a fund value of the coverage at the particular time, each death benefit that would be payable under the coverage at any time after the particular time if the amount of the benefit 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

(b)  in any other case, each death benefit payable under the coverage at any time after the particular time;

“future net premiums or cost of insurance charges” in respect of a coverage at a particular time means each amount determined by the formula in the first paragraph of section 92.11R1.1;

“future premiums or cost of insurance charges” in respect of a coverage at a particular time means

(a)  if there is a fund value of the coverage at the particular time, each cost of insurance charge in respect of the coverage that would be incurred at a time after the particular time if the net amount at risk under the coverage after the particular time were equal to the amount by which the death benefit under the coverage at the particular time exceeds the fund value of the coverage at the particular time; and

(b)  in any other case, each premium that is fixed and determined on the date of issue of the coverage that will become payable, or each cost of insurance charge in respect of the coverage that will be incurred at a time after the particular time;

“interpolation time” of a coverage means the time that is the earlier of the 8th anniversary of the date of issue of the coverage and the first time at which no premiums are payable or cost of insurance charges are incurred in respect of the coverage;

“life annuity contract” has the meaning assigned to it by sections 966R2 to 966R4;

“maximum tax actuarial reserve” in respect of a particular class of life insurance policies for a taxation year of a life insurer means, except as otherwise provided, the maximum amount the insurer may deduct for the year, under paragraph a of section 840 of the Act, in respect of the policies of that class;

“net premium reserve” of a life insurance policy at a particular time means the amount determined by the formula in the third paragraph of section 92.11R1.1;

“pay period” of an exemption test policy means

(a)  where the exemption test policy is issued in respect of a life insurance policy issued before 1 January 2017,

i.  if, on the date of issue of the exemption test policy, the individual whose life is insured has attained the age of 66 years, within the meaning of the policy, but not the age of 75 years, within the meaning of the policy, the period that starts on that date and that ends after the number of years obtained when the number of years by which the age of the individual exceeds 65 years, within the meaning of the policy, is subtracted from 20,

ii.  if, on the date of issue of the exemption test policy, the individual whose life is insured has attained the age of 75 years, within the meaning of the policy, the 10-year period that starts on that date, and

iii.  in any other case, the 20-year period that starts on the date of issue of the exemption test policy; and

(b)  where the exemption test policy is issued in respect of a life insurance policy issued after 31 December 2016,

i.  subject to subparagraph ii, where the individual whose life is insured under the coverage would, if the individual survived, attain the age of 105 years, within the meaning of the policy, within the 8-year period that starts on the date of issue of the exemption test policy, the period that starts on that date and that ends on the first policy anniversary that is after the day preceding the day on which the individual would, if the individual survived, attain the age of 105 years, within the meaning of the policy,

ii.  where 2 or more lives are jointly insured under the coverage and an individual of an age equal to the equivalent single age on the date of the issue of the coverage would, if the individual survived, attain the age of 105 years, within the meaning of the policy, within the 8-year period that starts on the date of issue of the exemption test policy, the period that starts on that date and that ends on the first policy anniversary that is after the day preceding the day on which the individual would, if the individual survived, attain the age of 105 years, within the meaning of the policy, and

iii.  in any other case, the 8-year period that starts on the date of issue of the exemption test policy;

“policy anniversary” includes, in the case of a life insurance policy that exists for a full calendar year and in respect of which there would not otherwise be a policy anniversary during the year, the end of the calendar year;

“policy loan” has the meaning assigned to it by paragraph a.1.1 of section 966 of the Act; and

“prescribed annuity contract” has the meaning assigned to it by Division III.

The definitions and rules provided for in Division I of Chapter XV of Title XXXII apply to this chapter.

s. 92.11R0.1; O.C. 67-96, s. 8; O.C. 1470-2002, s. 5; O.C. 1155-2004, s. 8; O.C. 134-2009, s. 1; O.C. 390-2012, s. 4; S.Q. 2019, c. 14, s. 619; S.Q. 2023, c. 19, s. 139.

2019-06-19

92.11R1. For the purposes of this chapter,

“accumulating fund” at a particular time, in respect of an interest in an annuity contract or a life insurance policy means the amount determined at that time in respect of the interest in accordance with sections 92.11R2 to 92.11R13;

“adjusted purchase price” of a taxpayer’s interest in an annuity contract at a particular time means, subject to sections 336R8 to 336R11, the amount that would be determined at that time in respect of the interest as the adjusted cost basis under sections 976 and 976.1 of the Act if that section 976.1 were read without reference to its paragraph c;

“amount payable” has the meaning assigned by subparagraph j of the first paragraph of section 835 of the Act;

“cash surrender value” has the meaning assigned to it by paragraph d of section 966 of the Act;

“coverage” under a life insurance policy means

(a)  for the purposes of Division IV, each life insurance (other than a fund value benefit) under the policy in respect of a life, or 2 or more lives jointly insured; and

(b)  for the purposes of this chapter (except Division IV) and section 976.1R1, each life insurance (other than a fund value benefit) under the policy in respect of a life, or 2 or more lives jointly insured, and in respect of which a particular schedule of premium or cost of insurance rates applies, each such insurance being a separate coverage;

“death benefit” includes the amount of an endowment benefit but does not include

(a)  an additional amount payable following an accidental death; and

(b)  where interest on an amount held on deposit by an insurer is included in computing the income of a policyholder for a taxation year, that interest and the amount held on deposit;

“endowment date” of an exemption test policy means

(a)  where the exemption test policy is issued in respect of a life insurance policy issued before 1 January 2017, the later of the 10th anniversary of the date of issue of the life insurance policy and the first policy anniversary that is after the day preceding the day on which the individual whose life is insured under the policy would, if the individual survived, attain the age of 85 years, within the meaning of the policy; or

(b)  where the exemption test policy is issued in respect of a coverage under a life insurance policy issued after 31 December 2016,

i.  if 2 or more lives are jointly insured under the coverage, the date that would be determined under subparagraph ii using the equivalent single age, determined on the coverage’s date of issue and in accordance with accepted actuarial principles and practices, that reasonably approximates the mortality rates of those lives, and

ii.  in any other case, the later of the first policy anniversary that is after the day preceding the day on which the individual whose life is insured under the coverage would, if the individual survived, attain the age of 90 years, within the meaning of the policy, and

(1)  the 15th anniversary of the date of issue of the exemption test policy, or

(2)  if it is earlier than that 15th anniversary, the first policy anniversary that is after the day preceding the day on which the individual whose life is insured under the coverage would, if the individual survived, attain the age of 105 years, within the meaning of the policy;

“exempt policy” has the meaning assigned to it by Division IV;

“fund value benefit” under a life insurance policy at a particular time means the amount by which the fund value of the policy at that time exceeds the aggregate of all amounts each of which is a fund value of a coverage under the policy at that time;

“fund value of a coverage” under a life insurance policy at a particular time means the aggregate of all amounts each of which is the balance at that time of an investment account in respect of the policy that reduces the net amount at risk as determined for the purpose of calculating the cost of insurance charges for the coverage for the period during which those charges are incurred or would be incurred if they were to apply until the termination of the coverage;

“fund value of a policy” at a particular time means the aggregate of all amounts each of which is the balance at that time of an investment account in respect of the policy and, for that purpose, any amount held on deposit by an insurer and any interest on the deposit are included in that aggregate if the interest is not included in computing the income of a policyholder for a taxation year and are excluded from that aggregate if the interest is included in computing the income of a policyholder for a taxation year;

“future benefits to be provided” in respect of a coverage under a life insurance policy at a particular time means

(a)  if there is a fund value of the coverage at the particular time, each death benefit that would be payable under the coverage at any time after the particular time if the amount of the benefit 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

(b)  in any other case, each death benefit payable under the coverage at any time after the particular time;

“future net premiums or cost of insurance charges” in respect of a coverage at a particular time means each amount determined by the formula in the first paragraph of section 92.11R1.1;

“future premiums or cost of insurance charges” in respect of a coverage at a particular time means

(a)  if there is a fund value of the coverage at the particular time, each cost of insurance charge in respect of the coverage that would be incurred at a time after the particular time if the net amount at risk under the coverage after the particular time were equal to the amount by which the death benefit under the coverage at the particular time exceeds the fund value of the coverage at the particular time; and

(b)  in any other case, each premium that is fixed and determined on the date of issue of the coverage that will become payable, or each cost of insurance charge in respect of the coverage that will be incurred at a time after the particular time;

“interpolation time” of a coverage means the time that is the earlier of the 8th anniversary of the date of issue of the coverage and the first time at which no premiums are payable or cost of insurance charges are incurred in respect of the coverage;

“life annuity contract” has the meaning assigned to it by sections 966R2 to 966R4;

“net premium reserve” of a life insurance policy at a particular time means the amount determined by the formula in the third paragraph of section 92.11R1.1;

“pay period” of an exemption test policy means

(a)  where the exemption test policy is issued in respect of a life insurance policy issued before 1 January 2017,

i.  if, on the date of issue of the exemption test policy, the individual whose life is insured has attained the age of 66 years, within the meaning of the policy, but not the age of 75 years, within the meaning of the policy, the period that starts on that date and that ends after the number of years obtained when the number of years by which the age of the individual exceeds 65 years, within the meaning of the policy, is subtracted from 20,

ii.  if, on the date of issue of the exemption test policy, the individual whose life is insured has attained the age of 75 years, within the meaning of the policy, the 10-year period that starts on that date, and

iii.  in any other case, the 20-year period that starts on the date of issue of the exemption test policy; and

(b)  where the exemption test policy is issued in respect of a life insurance policy issued after 31 December 2016,

i.  subject to subparagraph ii, where the individual whose life is insured under the coverage would, if the individual survived, attain the age of 105 years, within the meaning of the policy, within the 8-year period that starts on the date of issue of the exemption test policy, the period that starts on that date and that ends on the first policy anniversary that is after the day preceding the day on which the individual would, if the individual survived, attain the age of 105 years, within the meaning of the policy,

ii.  where 2 or more lives are jointly insured under the coverage and an individual of an age equal to the equivalent single age on the date of the issue of the coverage would, if the individual survived, attain the age of 105 years, within the meaning of the policy, within the 8-year period that starts on the date of issue of the exemption test policy, the period that starts on that date and that ends on the first policy anniversary that is after the day preceding the day on which the individual would, if the individual survived, attain the age of 105 years, within the meaning of the policy, and

iii.  in any other case, the 8-year period that starts on the date of issue of the exemption test policy;

“policy anniversary” includes, in the case of a life insurance policy that exists for a full calendar year and in respect of which there would not otherwise be a policy anniversary during the year, the end of the calendar year;

“policy loan” has the meaning assigned to it by paragraph a.1.1 of section 966 of the Act; and

“prescribed annuity contract” has the meaning assigned to it by Division III.

The definitions and rules provided for in Division I of Chapter XV of Title XXXII apply to this chapter.

s. 92.11R0.1; O.C. 67-96, s. 8; O.C. 1470-2002, s. 5; O.C. 1155-2004, s. 8; O.C. 134-2009, s. 1; O.C. 390-2012, s. 4; S.Q. 2019, c. 14, s. 619.

2012-09-01

92.11R1. For the purposes of this chapter,

“accumulating fund” at a particular time, in respect of an interest in an annuity contract or a life insurance policy means the amount determined at that time in respect of the interest in accordance with sections 92.11R2 to 92.11R13;

“amount payable” has the meaning assigned by subparagraph j of the first paragraph of section 835 of the Act;

“cash surrendered value” has the meaning assigned to it by paragraph d of section 966 of the Act;

“death benefit” does not include a dividend on a policy or interest thereon, left on deposit with an insurer, or an additional amount payable following an accidental death;

“exempt policy” has the meaning assigned to it by Division IV;

“life annuity contract” has the meaning assigned to it by sections 966R2 to 966R4;

“policy anniversary” includes, in the case of a life insurance policy that exists for a full calendar year and in respect of which there would not otherwise be a policy anniversary during the year, the end of the calendar year;

“policy loan” has the meaning assigned to it by paragraph a.1.1 of section 966 of the Act; and

“prescribed annuity contract” has the meaning assigned to it by Division III.

s. 92.11R0.1; O.C. 67-96, s. 8; O.C. 1470-2002, s. 5; O.C. 1155-2004, s. 8; O.C. 134-2009, s. 1; O.C. 390-2012, s. 4.