Income Tax Act — I-3.3 148
or two or more specific lives jointly insured under the coverage referred to in the description of O — that would be the present value, determined for the purposes of section 307 of the Income Tax Regulations , on the last policy anniversary (as defined in section 310 of the Income Tax Regulations ) on or before the termination, of the fund value of the coverage (as defined in subsection 1401(3) of the Income Tax Regulations ) if the fund value of the coverage on that policy anniversary were equal to the fund value of the coverage on the termination, S is the total of all amounts — each of which is in respect of a coverage (as defined in subsection 1401(3) of the Income Tax Regulations and referred to in this description as a “particular coverage”) in respect of a specific life or two or more specific lives jointly insured under the coverage referred to in the description of O — that would be determined, on that policy anniversary, for paragraph (a) of the description of C in the definition net premium reserve in subsection 1401(3) of the Income Tax Regulations in respect of the particular coverage, if the benefit on death under the particular coverage, and the fund value of the coverage (as defined in subsection 1401(3) of the Income Tax Regulations ), on that policy anniversary were equal to the benefit on death under the particular coverage and the fund value of the coverage, as the case may be, on the termination, T is the amount that would be, on that policy anniversary, the net premium reserve (as defined in subsection 1401(3) of the Income Tax Regulations ) in respect of the policy for the purposes of section 307 of the Income Tax Regulations , if the fund value benefit (as defined in subsection 1401(3) of the Income Tax Regulations ) under the policy, the benefit on death under each coverage (as defined in subsection 1401(3) of the Income Tax Regulations ) and the fund value of each coverage (as defined in subsection 1401(3) of the Income Tax Regulations ) on that policy anniversary were equal to the fund value benefit, the benefit on death under each coverage and the fund value of each coverage, as the case may be, under the policy on the termination, and U is the amount, if any, determined under subsection (4) in respect of a disposition before that time of the interest because of paragraph (2)(e) in respect of the payment in respect of the fund value benefit under the policy paid in respect of the coverage (as defined in section 310 of the Income Tax Regulations for the purposes of section 306 of the Income Tax Regulations ) on the termination; ( coût de base rajusté ) amount payable , in respect of a policy loan, has the meaning assigned by subsection 138(12); ( montant payable ) cash surrender value at a particular time of a life insurance policy means its cash surrender value at that time computed without regard to any policy loans made under the policy, any policy dividends (other than paid-up additions) payable under the policy or any interest payable on those dividends; ( valeur de rachat ) child of a policyholder includes a child as defined in subsection 70(10); ( enfant ) disposition , in relation to an interest in a life insurance policy, includes (a) a surrender thereof, (b) a policy loan made after March 31, 1978, (c) the dissolution of that interest by virtue of the maturity of the policy, (d) a disposition of that interest by operation of law only, and (e) the payment by an insurer of an amount (other than an annuity payment, a policy loan or a policy dividend) in respect of a policy (other than a policy described in paragraph 148(1)(a), 148(1)(b), 148(1)(c), 148(1)(d) or 148(1)(e)) that is a life annuity contract, as defined by regulation, entered into after November 16, 1978, and before November 13, 1981, but does not include (f) an assignment of all or any part of an interest in the policy for the purpose of securing a debt or a loan other than a policy loan, (g) a lapse of the policy in consequence