A FLP is a life assurance policy issued by an entity that was not a resident of Australia at any time in the income year.
The FIF measures apply only to certain life policies, and do not include:
- a policy issued in Australia, provided that the entity that issued the policy was authorised under the Life Insurance Act 1995 to carry on life insurance business in Australia when it issued the policy
- policies which provide for payment only on death or on death or permanent disability, and in respect of which the premiums or premium instalments is calculated solely by reference to the period for which the life concerned is expected to continue, or within which the life concerned is expected to terminate
- policies issued before 1 July 1992 which cannot, after that date, be cancelled, surrendered or redeemed and for which the terms have not been materially altered
- a contract of reinsurance of pure life cover between a resident insurer and a non-resident reinsurer. [section 482]