Document ID: chunk:federal_register_of_legislation:C2010C00575:schedule:2j:p3
Version: federal_register_of_legislation:C2010C00575
Segment Type: schedule
Provision Reference: sch 2J (pt 3/5)
Character Range: 20718–23459

policies of reinsurance at the end of the previous year of income is taken to be the amount that would have been the value of that liability at that time if it had been worked out in accordance with section 321‑20.

Subdivision 321‑B—Premium income

Guide to Subdivision 321‑B

321‑40  What this Subdivision is about

      This Subdivision contains provisions relating to the assessment of general insurance companies in respect of premium income.

Table of sections

Operative provisions

321‑45 Assessable income to include gross premiums
321‑50 Amount to be included in assessable income for reduction in value of unearned premium reserve
321‑55 Deduction for increase in value of unearned premium reserve
321‑60 How value of unearned premium reserve is worked out
321‑65 Application

[This is the end of the Guide]

Operative provisions

321‑45  Assessable income to include gross premiums

  The assessable income of a general insurance company for a year of income includes the gross premiums received or receivable by the company during the year of income in respect of general insurance policies.

321‑50  Amount to be included in assessable income for reduction in value of unearned premium reserve

  If the value, at the end of a year of income (the current year of income), of the unearned premium reserve of a general insurance company under general insurance policies is less than the value, at the end of the previous year of income, of that reserve, the company's assessable income of the current year of income includes an amount equal to the difference.

321‑55  Deduction for increase in value of unearned premium reserve

  If the value, at the end of a year of income (the current year of income), of the unearned premium reserve of a general insurance company under general insurance policies exceeds the value, at the end of the previous year of income, of that reserve, the company can deduct for the current year of income an amount equal to the excess.

321‑60  How value of unearned premium reserve is worked out

  The value of the unearned premium reserve, at the end of a year of income (the current year of income), of a general insurance company under general insurance policies issued in the course of carrying on insurance business is so much of the sum of the net premiums received or receivable by the company in relation to those policies as the company determines, based on proper and reasonable estimates, to relate to risks covered by the policies in respect of later years of income where:

apportionable issue costs means so much of the costs incurred by the company in connection with the issue of the relevant policies as relate to the gross premiums and, without limiting the generality