Income Tax Act — I-3.3 211
Definitions 211 (1) For the purposes of this Part, existing guaranteed life insurance policy , at any time, means a non-participating life insurance policy in Canada in respect of which (a) the amount of every premium that became payable before that time and after December 31, 1989, (b) the number of premium payments under the policy, and (c) the amount of each benefit under the policy at that time were fixed and determined on or before December 31, 1989; ( police d’assurance-vie garantie existante ) life insurance policy includes a benefit under (a) a group life insurance policy, and (b) a group annuity contract but does not include (c) that part of a policy in respect of which the policyholder is deemed by paragraph 138.1(1)(e) to have an interest in a related segregated fund trust, or (d) a reinsurance arrangement; ( police d’assurance-vie ) life insurance policy in Canada means a life insurance policy issued or effected by an insurer on the life of a person resident in Canada at the time the policy was issued or effected; ( police d’assurance-vie au Canada ) net interest rate , in respect of a liability, benefit, risk or guarantee under a life insurance policy of an insurer for a taxation year, is the positive amount, if any, determined by the formula (A - B) × C where A is the simple arithmetic average determined as of the first day of the year of the average yield (expressed as a percentage per year rounded to 2 decimal points) in each of the 60 immediately preceding months prevailing on all domestic Canadian-dollar Government of Canada bonds outstanding on the last Wednesday of that month that have a remaining term to maturity of more than 10 years, B is (a) in the case of a guaranteed benefit provided under the terms and conditions of the policy as they existed on March 2, 1988, other than a policy where, at any time after March 2, 1988, its terms and conditions relating to premiums and benefits were changed (otherwise than to give effect to the terms and conditions that were determined before March 3, 1988), the greater of (i) the rate of interest (expressed as a percentage per year) used by the insurer in determining the amount of the guaranteed benefit, and (ii) 4%, and (b) in any other case, nil, and C is (a) in the case of a guaranteed benefit to which paragraph (a) of the description of B applies, 65%, and (b) in any other case, 55%; ( taux d’intérêt net ) non-participating life insurance policy means a life insurance policy that is not a participating life insurance policy; ( police d’assurance-vie sans participation ) participating life insurance policy has the meaning assigned by subsection 138(12); ( police d’assurance-vie avec participation ) policy loan has the meaning assigned by subsection 138(12); ( avance sur police ) registered life insurance policy means a life insurance policy issued or effected as or under a pooled registered pension plan, a registered retirement savings plan, a deferred profit sharing plan or a registered pension plan; ( police d’assurance-vie agréée ) reinsurance arrangement does not include an arrangement under which an insurer has assumed the obligations of the issuer of a life insurance policy to the policyholder; ( mécanisme de réassurance ) segregated fund has the meaning given that expression in subsection 138.1(1); ( fonds réservé ) specified transaction or event , in respect of a life insurance policy, means (a) a change in underwriting class, (b) a change in premium because of a change in frequency of premium payments within a year that does not alter the present value, at the beginning of the year, of the total premiums to be paid under the policy in the year, (c) an addition under the terms of the policy as they existed on (i) in the case of an existing guaranteed life insurance policy, December 31, 1989, (ii) in any other case, March 2, 1988, of accidental death, dismemberment, disability or guaranteed purchase option benefits, (d) the deletion of a rider, (e) redating