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 320-250   Transfer of assets and payment of amounts from segregated exempt assets otherwise than as a result of a valuation under section 320-230  

320-250(1A)  


If:


(a) a *life insurance policy issued by a *life insurance company becomes a policy referred to in subsection 320-190(1) ; and


(b) immediately before the policy became a policy referred to in subsection 320-190(1) , the policy was an *exempt life insurance policy;

the company can transfer from its *segregated exempt assets, to a *complying superannuation asset pool, assets of any kind whose total *transfer value does not exceed the company ' s liabilities in respect of the policy.

320-250(1)  
A *life insurance company can at any time transfer an asset from its*segregated exempt assets in exchange for an amount of money equal to the *transfer value of the asset at the time of the transfer.

320-250(2)  
If a *life insurance company:


(a) imposes any fees or charges in respect of *segregated exempt assets; or


(b) imposes any fees or charges in respect of *exempt life insurance policies where the liabilities under the policies are to be discharged out of the company's segregated exempt assets; or


(c) determines, at a time other than a *valuation time, that the total *transfer value of the company's segregated exempt assets as at that time exceeds the amount of the company's *exempt life insurance policy liabilities as at that time;

the company must, when the fees or charges are imposed or the excess is determined, as the case may be, transfer from the segregated exempt assets, assets having a total transfer value equal to the fees, charges or excess, as the case may be.

320-250(3)  
If:


(a) any liabilities arise for the discharge of which a *life insurance company has *segregated exempt assets; or


(b) any expenses are incurred by a life insurance company directly in respect of segregated exempt assets in relation to a period during which the assets are segregated exempt assets;

the life insurance company must pay from the segregated exempt assets any amounts required to discharge the liabilities or amounts equal to the expenses, as the case may be.

320-250(4)  
(Repealed by No 83 of 2004)


 

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