Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-35 - INSURANCE BUSINESS  

Division 320 - Life insurance companies  

Subdivision 320-H - Segregation of assets to discharge exempt life insurance policy liabilities  

Operative provisions

SECTION 320-245   Exempt life insurance policy liabilities  

320-245(1)    
The amount of the * exempt life insurance policy liabilities of a * life insurance company is to be worked out in accordance with subsection (2) in respect only of * life insurance policies issued by the company:

(a) that are * exempt life insurance policies; and

(b) the liabilities under which are to be discharged out of the company's * segregated exempt assets.

320-245(2)    
The amount of the exempt life insurance policy liabilities of a * life insurance company at a particular time is the sum of the following amounts at that time, as calculated by an * actuary:

(a) for policies providing for allocated benefits (other than * participating benefits or * discretionary benefits) - the * current termination values;

(b) for policies providing for participating benefits or discretionary benefits:

(i) the values of supporting assets, as defined in the * Valuation Standard; and

(ii) the * policy owner's retained profits;

(c) for other policies - the policy liabilities, as defined in the Valuation Standard.

320-245(3)    
An * exempt life insurance policy provides for allocated benefits if:

(a) the policy:

(i) is held by the trustee of a * complying superannuation fund; and

(ii) (Repealed by No 83 of 2004)

(iii) provides for an * allocated pension; or

(b) the policy:

(i) is held by a * life insurance company other than the life insurance company that issued the policy; and

(ii) is a * segregated exempt asset of the life insurance company that issued the policy; and

(iii) provides for an allocated pension; or

(c) the policy provides for an * allocated annuity.