Income Tax Regulations — 1900
b) the amount determined in the description of B in the definition mortality experience in respect of the insurer for the year; ( coût net de l’assurance ) net level premium in respect of a particular premium under a policy (other than a prepaid premium that cannot be refunded except on termination or cancellation of the policy) means (a) where benefits (other than policy dividends) and premiums (other than the frequency of payment thereof) in respect of the policy have been determined at the date of issue of the policy, the amount determined by the formula A × (B / C) where A is the amount of the particular premium, B is the present value, at the date of issue of the policy, of the amount of the benefits (other than policy dividends) to be provided under the terms of the policy after the issue of the policy, and C is the present value, at the date of issue of the policy, of the amount of the premiums payable under the terms of the policy on or after the issue of the policy, and (b) where the amounts of the benefits or premiums in respect of the policy are not determined at the date of issue of the policy, the amount that would be determined under paragraph (a) in respect of the particular premium if the amount were adjusted in a manner that is reasonable in the circumstances and consistent with the manner of the adjustment referred to in the definition modified net premium in subsection 1404(2) in respect of the particular premium; ( prime constante nette ) net level premium reserve in respect of a life insurance policy for a taxation year means the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in respect of the policy in computing the insurer’s income for the year, if any reference to modified net premium in sections 1401, 1403 and 1404 were a reference to net level premium ; ( réserve de primes constantes nettes ) non-participating life insurance policy means a life insurance policy other than a participating life insurance policy within the meaning assigned by subsection 138(12) of the Act; ( police d’assurance-vie sans participation ) policy loan has the meaning assigned by subsection 138(12) of the Act; ( prêt sur police ) pre-funded group life insurance policy means a group term life insurance policy, other than a policy under which each premium payable is in respect of coverage for a period, including the day on which the premium becomes payable, that does not exceed twelve months; ( police collective d’assurance-vie par capitalisation anticipée ) premium includes (a) consideration received for settlement annuities, (b) amounts received by an insurer in respect of employee contributions under registered pension funds or plans in respect of which the insurer is a plan sponsor or a retirement compensation arrangement in respect of which the insurer is the custodian, and (c) any amount deemed by paragraph 138.1(1)(h) of the Act for the purposes of Part I of the Act to be a premium received by an insurer, but does not include amounts received in respect of the repayment of a policy loan or in respect of interest on a policy loan and, for greater certainty, the amount of a premium is not reduced by the amount of a refund of premiums; ( prime ) registered life insurance policy has the meaning assigned by section 211 of the Act; ( 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 assigned by subsection 138(12) of the Act; ( 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 due to 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 polic