Income Tax Regulations — 1900
(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the benefit in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any policy loan or reinsurance arrangement, and (b) in respect of a pre-funded group life insurance policy, 80 per cent of the amount that would be determined under paragraph (a) in respect of the policy for the year, if that paragraph were read without reference to the words “(other than a pre-funded group life insurance policy)”; ( intérêts garantis ) life insurance policy does not include (a) that part of a policy in respect of which the policyholder is deemed by paragraph 138.1(1)(e) of the Act to have an interest in a segregated fund trust, or (b) a reinsurance arrangement; ( police d’assurance-vie ) life insurance policy in Canada does not include (a) that part of a policy in respect of which the policyholder is deemed by paragraph 138.1(1)(e) of the Act to have an interest in a segregated fund trust, or (b) a reinsurance arrangement; ( police d’assurance-vie au Canada ) maximum tax actuarial reserve has the meaning assigned by subsection 138(12) of the Act; ( réserve actuarielle maximale aux fins de l’impôt ) mortality experience of an insurer for a taxation year means the positive or negative amount, as the case may be, determined by the formula (A - B - C) where A is the total of all amounts each of which is the amount that became payable in the year by the insurer under a taxable life insurance policy of the insurer as a consequence of the receipt of a claim in respect of the death of a person whose life was insured under the policy, determined without reference to any policy loan, B is the total of all amounts each of which is the amount of a reserve that would be determined in accordance with paragraph 1401(1)(a), (c) or (d), if that amount were determined without reference to any policy loan or reinsurance arrangement, in respect of a taxable life insurance policy of the insurer that would have been released in the year as a consequence of the receipt of a claim in respect of the death of a person whose life was insured under the policy, and C is 90 per cent of the total of all amounts, each of which is the net cost of pure insurance determined in accordance with section 308 for the year in respect of an interest in a taxable life insurance policy of the insurer; ( facteur de mortalité ) mortality loss adjustment account of an insurer at the end of a taxation year is the positive amount, if any, determined by the formula A + B - C where A is the mortality loss adjustment account of the insurer for the immediately preceding taxation year, B is (a) where the mortality experience of the insurer for the year is a negative amount, the amount of the mortality experience of the insurer for the year, and (b) in any other case, the amount, if any, by which the amount claimed by the insurer under the description of F in computing the amount determined under subsection (6) for the year exceeds the amount of the mortality loss adjustment account of the insurer for the immediately preceding taxation year, and C is 1.2 times the amount, if any, by which (a) the net cost of insurance of the insurer for the year exceeds (b) the total of all amounts each of which is the net cost of pure insurance determined in accordance with section 308 for the year in respect of an interest in a taxable life insurance policy of the insurer; ( compte de redressement pour pertes de mortalité ) net cost of insurance of an insurer for a taxation year means the amount, if any, by which (a) the amount determined in the description of A in the definition mortality experience in respect of the insurer for the year exceeds (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