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(ii) (Repealed by No 83 of 2004)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.


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