Income Tax Regulations — 2400
ntractual service margin for the group if the amount were determined excluding any portion that is in respect of a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii), E is the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that is (a) the reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of (i) a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of D, or (ii) an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and (b) in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of either (i) a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of D, or (ii) an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and F is the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that is (a) if no portion of the contractual service margin for the group is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of D, the contractual service margin for the group, and (b) in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of D; and B is the amount determined by the formula G − (0.9 × H) − (I − (0.9 × J)) where G is the total of all amounts each of which is an amount in respect of an insurance business carried on by the insurer and that is reported as a liability (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year except to the extent the liability is in respect of (a) an insurance policy described in paragraph (a) or (b) of the description of C, or (b) a debt incurred or assumed by the insurer to acquire a property of the insurer, H is the total of all amounts each of which is an amount, in respect of a group of insurance contracts of the insurer at the end of the year, that is (a) the contractual service margin for the group, if no portion of the contractual service margin is in respect of a policy other than a policy that (i) is not described in paragraph (a) or (b) of the description of C, (ii) is (A) a life insurance policy, (B) a policy in respect of mortgage insurance (as defined in subsection 1408(1)), or (C) a policy in respect of title insurance (as defined in subsection 1408(1)), and (iii) is not a segregated fund policy, and (b) in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii), I is the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that is (a) the reinsurance contract held amount for the group, if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of (i) a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of H, or (ii) an obligation to pay a benefit u