Income Tax Regulations — 2400
funds withheld arrangement in respect of the reinsurance of a risk by the insurer under an insurance policy described in any of paragraphs (a) to (c) of the description of A; B is the total of all amounts each of which is, in respect of a group of insurance contracts of the insurer at the end of the year, (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 described in any of paragraphs (a) to (c) of the description of A, (ii) is (A) a life insurance policy in Canada, (B) a policy that insures risk in respect of a financial loss of a lender on a loan made on the security of real property, (C) a non-cancellable or guaranteed renewable accident and sickness policy in respect of accident and sickness insurance (as defined in subsection 1408(1)), or (D) 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 excluded the portion that is in respect of policies other than policies that meet the conditions in subparagraphs (a)(i) to (iii); C 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 is in respect of the reinsurance of (i) a risk under a policy other than a policy that meets the condition in subparagraph (a)(i) of the description of B, 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 B, 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 D 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 a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of B, 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 B. ( passif de réserve canadienne ) contractual service margin for a group of insurance contracts of an insurer, or a group of reinsurance contracts held by the insurer, at the end of a taxation year, has the same meaning as in subsection 138(12) of the Act. ( marge sur services contractuels ) deposit balance of an insurer means an amount standing to the insurer’s credit as or on account of amounts deposited with a corporation authorized to accept deposits or to carry on the business of offering to the public its services as a trustee. ( solde de dépôt ) equity limit of an insurer for a taxation year means (a) in respect of a life insurer resident in Canada, that proportion of the total of all amounts each of which is the value for the year of an equity property of the insurer that (i) the insurer’s weighted Canadian liabilities as at the end of the year is of (ii) the insurer’s weighted total liabilities as at the end of the year; (b) in respect of a non-resident insurer (other than a life insurer), 25% of the total of (