Document ID: chunk:federal_register_of_legislation:C2010C00584:clause:6_25:p10
Version: federal_register_of_legislation:C2010C00584
Segment Type: clause
Provision Reference: sch 6 cl 25 (pt 10/10)
Character Range: 95395–97413

section are to be valued as mentioned in this section.

 (2) To avoid doubt, those liabilities are the liabilities that become those of the leaving entity because section 701‑1 (Single entity rule) ceases to apply to the leaving entity when it ceases to be a *subsidiary member of the group.

 (3) The value of the leaving entity's *virtual PST liabilities (if any) is the amount worked out under section 320‑190 at the leaving time.

 (4) The value of the leaving entity's *exempt life insurance policy liabilities (if any) is the amount worked out under section 320‑245 at the leaving time.

 (5) Subsection (6) applies to a liability of the leaving entity if:
 (a) the liability is under the *net risk component of a *life insurance policy; and
 (b) the leaving entity could deduct under section 320‑80 an amount for the *risk component of claims paid under the policy on or after the time it ceased to be a *member of the *consolidated group.

 (6) The value of that liability is the *current termination value of the *net risk component of the *life insurance policy at the leaving time (calculated by an *actuary).

 (7) The value of the leaving entity's liabilities under the *net investment component of ordinary life insurance policies is the amount worked out for those liabilities under subsection 320‑190(2) as if those liabilities were *virtual PST liabilities.

713‑585  Obligation to value certain assets and liabilities at leaving time

  Division 320 has effect as if the time when a *life insurance company ceases to be a *subsidiary member of a *consolidated group were a *valuation time for the purposes of sections 320‑175 and 320‑230.

Note: This means that there must be a valuation of the virtual PST assets and virtual PST liabilities under section 320‑175 (with the consequences set out in section 320‑180), and a valuation of the segregated exempt assets and exempt life insurance policy liabilities under section 320‑230 (with the consequences set out in section 320‑235), as at that time.