I-3 - Taxation Act

Section 832.17 Disposition versions

2006-03-01

832.17. Where, in connection with the demutualization of an insurance corporation, a person would, if section 832.12 were read without reference to paragraphs f and g thereof and paragraph a of section 832.13 were read without reference to the application of section 965.0.17.3, receive a particular benefit that is a specified insurance benefit, the following rules apply:

(a)  the insurance corporation that is obligated to pay benefits under the policy to which the particular benefit relates is deemed to have received a premium at the time of the demutualization in respect of that policy equal to the value of the particular benefit;

(b)  for the purposes of paragraph a, to the extent that the obligations of a particular insurance corporation under the policy were assumed by another insurance corporation before the time of the demutualization, the particular corporation is deemed not to be obligated to pay benefits under the policy; and

(c)  subject to subparagraph a of the second paragraph of section 832.22, where the person receives the particular benefit, the person is deemed to have paid, at the time of the demutualization, a premium in respect of the policy to which the benefit relates equal to the value of the particular benefit.

2001, c. 53, s. 167.