Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p78
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 78/79)
Character Range: 5035996–5038803

Transfer of assets to segregated exempt assets otherwise than as a result of a valuation under section 320‑230
 (1) If a *life insurance company determines, at a time other than a *valuation time, that:
 (a) the total *transfer value of the company's *segregated exempt assets as at that time;
is less than
 (b) the company's *exempt life insurance policy liabilities as at that time;
the company can transfer, to the segregated exempt assets, assets of any kind having a total transfer value not exceeding the difference.
 (2) A *life insurance company can at any time transfer an asset of any kind to its *segregated exempt assets in exchange for an amount of money equal to the *transfer value of the asset at the time of the transfer.
 (3) A *life insurance company can transfer, to its *segregated exempt assets in an income year, assets of any kind having a total *transfer value not exceeding the total amount of the *life insurance premiums paid to the company in that income year for the purchase of *exempt life insurance policies.
 (4) Except as provided by this section and subsections 320‑195(1) and 320‑235(3), a *life insurance company cannot transfer an asset to its *segregated exempt assets.

320‑245  Exempt life insurance policy liabilities
 (1) The amount of the *exempt life insurance policy liabilities of a *life insurance company is to be worked out in accordance with subsection (2) in respect only of *life insurance policies issued by the company:
 (a) that are *exempt life insurance policies; and
 (b) the liabilities under which are to be discharged out of the company's *segregated exempt assets.
 (2) The amount of the exempt life insurance policy liabilities of a *life insurance company at a particular time is the sum of the following amounts at that time, as calculated by an *actuary:
 (a) for policies providing for allocated benefits (other than *participating benefits or *discretionary benefits)—the *current termination values;
 (b) for policies providing for participating benefits or discretionary benefits:
 (i) the values of supporting assets, as defined in the *Valuation Standard; and
 (ii) the *policy owner's retained profits;
 (c) for other policies—the policy liabilities, as defined in the Valuation Standard.
 (3) An *exempt life insurance policy provides for allocated benefits if:
 (a) the policy:
 (i) is held by the trustee of a *complying superannuation fund; and
 (iii) provides for an *allocated pension; or
 (b) the policy:
 (i) is held by a *life insurance company other than the life insurance company that issued the policy; and
 (ii) is a *segregated exempt asset of the life insurance company that issued the policy; and
 (iii) provides for an allocated pension; or
 (c) the policy provides for an *allocated annuity.

320‑246  Exempt life