Income Tax Regulations — 1408
lice d’assurance-vie au Canada ) modified net premium , in respect of a premium under a policy (other than a prepaid premium under a policy that cannot be refunded except on termination of the policy), means (a) where all benefits (other than policy dividends) and premiums (other than the frequency of payment of premiums) in respect of the policy are determined at the date of issue of the policy, the amount determined by the formula A × [(B + C) / (D + E)] where A is the amount of the premium, B is the present value, at the date of the issue of the policy, of the benefits to be provided under the terms of the policy after the day that is one year after the date of the issue of the policy, C is the present value, at the date of the issue of the policy, of the benefits to be provided under the terms of the policy after the day that is two years after the date of the issue of the policy, D is the present value, at the date of the issue of the policy, of the premiums payable under the terms of the policy on or after the day that is one year after the date of the issue of the policy, and E is the present value, at the date of the issue of the policy, of the premiums payable under the terms of the policy on or after the day that is two years after the date of the issue of the policy, except that the amount determined by the formula in respect of the premium for the second year of a policy is deemed to be the amount that is 50% of the total of (i) the amount that would otherwise be determined under the formula, and (ii) the amount of a one-year term insurance premium (determined without regard to the frequency of payment of the premium) that would be payable under the policy; and (b) in any other case, the amount that would be determined under paragraph (a) if that paragraph applied and the amount were adjusted in a manner that is reasonable in the circumstances. ( prime nette modifiée ) mortgage insurance has the same meaning as in the schedule to the Insurance Companies Act . ( assurance hypothécaire ) net premium for the policy [Repealed, SOR/2002-123, s. 2] non-cancellable or guaranteed renewable accident and sickness policy , includes a non-cancellable or guaranteed renewable accident and sickness benefit under a group policy. ( police d’assurance contre les accidents et la maladie non résiliable ou à renouvellement garanti ) participating life insurance policy has the meaning assigned by subsection 138(12) of the Act. ( police d’assurance-vie avec participation ) policy liability [Repealed, 2022, c. 19, s. 84] policy loan has the meaning assigned by subsection 138(12) of the Act. ( avance sur police ) post-1995 life insurance policy [Repealed, 2022, c. 19, s. 84] post-1995 non-cancellable or guaranteed renewable accident and sickness policy [Repealed, 2022, c. 19, s. 84] pre-1996 life insurance policy [Repealed, 2022, c. 19, s. 84] pre-1996 non-cancellable or guaranteed renewable accident and sickness policy [Repealed, 2022, c. 19, s. 84] qualified annuity means an annuity contract issued before 1982, other than a deposit administration fund policy or a policy referred to in paragraph 1403(7)(c), (a) in respect of which regular periodic annuity payments have commenced; (b) in respect of which a contract or certificate has been issued that provides for regular periodic annuity payments to commence within one year after the date of issue of the contract or certificate; (c) that is not issued as or under a registered retirement savings plan, registered pension plan or deferred profit sharing plan and that (i) does not provide for a guaranteed cash surrender value at any time, and (ii) provides for regular periodic annuity payments to commence not later than the attainment of age 71 by the annuitant; or (d) that is issued as or under a registered retirement savings plan, registered pension plan or deferred profit sharing plan, if the interest rate is guaranteed for at least 10 years and the plan does not provide for any participati