Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p59
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 59/79)
Character Range: 4988272–4990945

*discretionary benefits; or
 (b) funeral policies.

320‑75  Deduction for ordinary investment policies
 (1) This section applies to a *life insurance company in respect of *ordinary investment policies issued by the company.
 (2) The company can deduct, in respect of *life insurance premiums received in the income year for those policies:
 (a) the sum of the *net premiums;
less:
 (b) so much of the net premiums as an *actuary determines to be attributable to fees and charges charged in that income year.
 (3) In making a determination under subsection (2), an *actuary is to have regard to:
 (a) the changes over the income year in the sum of the *net current termination values of the policies; and
 (b) the movements in those values during the income year.
 (4) In addition, if an *actuary determines that:
 (a) there has been a reduction in the income year (the current year) of exit fees that were imposed in respect of those policies in a previous income year; and
 (b) the reduction (or a part of it) has not been taken into account in a determination under subsection (2) for the current year;
the company can deduct so much of that reduction as has not been so taken into account.

320‑80  Deduction for certain claims paid under life insurance policies
 (1) A *life insurance company can deduct the amounts paid in respect of the *risk components of claims paid under *life insurance policies during the income year.
 (2) The risk component of a claim paid under a *life insurance policy is:
 (a) if:
 (i) the policy does not provide for *participating benefits or *discretionary benefits; and
 (ii) the policy is neither an *exempt life insurance policy nor a *funeral policy; and
 (iii) an amount is payable under the policy only on the death or disability of the insured person;
  the amount paid under the policy as a result of the occurrence of that event; or
 (b) if the policy provides for participating benefits or discretionary benefits or is an exempt life insurance policy or a funeral policy—nil; or
 (c) otherwise—the amount paid under the policy as a result of the death or disability of the insured person less the *current termination value of the policy (calculated by an *actuary) immediately before the death, or the occurrence of the disability, of the person.
 (3) Except as provided by subsection (1), a *life insurance company cannot deduct amounts paid in respect of claims under *life insurance policies.

320‑85  Deduction for increase in value of liabilities under net risk components of life insurance policies
 (1) A *life insurance company can deduct the amount (if any) by which the *value, at the end of the income year, of its