Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p45
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
Provision Reference: 
Character Range: 118707–121580

types of life insurance, whether death will occur within the period covered by the insurance).
(d) life-contingent annuities and pensions, ie contracts that provide compensation for the uncertain future event – the survival of the annuitant or pensioner – to provide the annuitant or pensioner with a level of income that would otherwise be adversely affected by his or her survival. (Employers' liabilities that arise from employee benefit plans and retirement benefit obligations reported by defined benefit retirement plans are outside the scope of AASB 17, applying paragraph 7(b)).
(e) insurance against disability and medical costs.
(f) surety bonds, fidelity bonds, performance bonds and bid bonds, ie contracts that compensate the holder if another party fails to perform a contractual obligation; for example, an obligation to construct a building.
(g) product warranties. Product warranties issued by another party for goods sold by a manufacturer, dealer or retailer are within the scope of AASB 17. However, product warranties issued directly by a manufacturer, dealer or retailer are outside the scope of AASB 17 applying paragraph 7(a), and are instead within the scope of AASB 15 or AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
(h) title insurance (insurance against the discovery of defects in the title to land or buildings that were not apparent when the insurance contract was issued). In this case, the insured event is the discovery of a defect in the title, not the defect itself.
(i) travel insurance (compensation in cash or in kind to policyholders for losses suffered in advance of, or during, travel).
(j) catastrophe bonds that provide for reduced payments of principal, interest or both, if a specified event adversely affects the issuer of the bond (unless the specified event does not create significant insurance risk; for example, if the event is a change in an interest rate or a foreign exchange rate).
(k) insurance swaps and other contracts that require a payment depending on changes in climatic, geological or other physical variables that are specific to a party to the contract.
B27 The following are examples of items that are not insurance contracts:
(a) investment contracts that have the legal form of an insurance contract but do not transfer significant insurance risk to the issuer. For example, life insurance contracts in which the entity bears no significant mortality or morbidity risk are not insurance contracts; such contracts are financial instruments or service contracts – see paragraph B28. Investment contracts with discretionary participation features do not meet the definition of an insurance contract; however, they are within the scope of AASB 17 provided they are issued by an entity that also issues insurance contracts, applying paragraph 3(c).
(b) contracts that have the legal form